Tony Abbott's budget reply " I can do better"

Abbott’s reply to Swan: “I can do better.”

By GDL

Tony Abbott, the opposition leader, in his budget reply speech last night, conceded that he will keep all the savings, the $43 billion, that Labor announced on Tuesday. Vey smart move as the dirty job has already been done for him. He thus will not have to confront the anger of those families, who were expecting the $5,000 baby bonus, as Labor had already coped it. However both sides must be applauded for scaping this policy which was universal meaning that even very rich benefitted from it. Peter Costello was right at the time but big time wrong today.
Tony Abbott declared that all the compensations, (except the school kids bonus), as well as all the pensions increases will be maintained. While the pensioners are laughing, those on benefits, e.g. the news starts, will be deprived of the additional $210 that Labor allowed them. Workers will also be deprived of an increase of their superannuation and those on low salaries will not receive the co-contributions. This measure was vigorously criticised by Labor as an attack on workers welfare. On average a worker will missed out on two years’ employer contributions of around $4,000 in his retirement benefits.
On the other hand, big business must be celebrating this morning because they will not have to pay the mineral resources rent tax, no carbon tax and no additional employer superannuation contributions. It did not take long for Gina Reinhart to come on TV and defend the mining industry. She said that mining is not an ATM which everybody can access. What a load of crap! Can anyone access an ATM? Is anyone apart from her and her mates benefitting from the billions accumulated by the mining sector? Gina Reinhart is the richest woman in the world and she becomes rich by exploiting our land. Yes this land that she is mining belongs to all Australians. Why then the boom has benefitted to only a few? The way the wealth of a country is distributed is by taxing the rich and giving to the poor, especially when that money comes form our land. This is how a welfare state works isn't it ?
Coming back to Tony Abbott, he maintains that he will scrap the mining tax to allow for more investment, jobs and growth, but the liberals will allow more skilled workers to come in the country with the 457 visa and therefore depriving Australians the chance of getting employment in the mining sector. Similarly investment in the mining sector comes from overseas and most of the profits go back.
Tony did not mention how he would pay for his generous paid parental leave scheme (which is dividing members of the coalition) nor did he address other structural problems in the budget. If Wayne Swans got the forecast wrong for one year, his forward revenue estimates cannot not be trusted. However it seems that Tony Abbott is relying on the same forward estimates, less the carbon tax and the mining tax, for a surplus in four years' time.
Tony Abbott tried to reassure the people of Australia, and particularly the voters, that they have nothing to fear, that the average family will be better off by $600 a year under a government he leads. He will maintain the tax free threshold of $18,000 implemented by Labor but promised to review the whole tax system as started by Ken Henry. There will also be a white paper on the relations between states and Federal governments, the COAG.
There will be no false promises or lame excuse for getting policies wrong. He promised accountability and a responsible government. While applauding and supporting fully the National Disability Insurance Scheme, his government will not support the Gonski School reforms but instead will review the school administration giving more leverage to the school principals.
Mr Abbott was very measured in his speech. He strived to look “prime-ministerial”. He was, to some extent nervous, and a bit too contained. He looks to have been put in a straight jacket, meaning that he had to be cautious and stick to his text for fear of going astray and getting into trouble like in the past.
Has he done enough to convince the voters that he will be a good prime minister? Has he been able to alleviate all the fears that some people still have towards him personally? The ides of September is not far. Can’t wait!