Mining Tax Abolished As Government Deals With Palmer

2.20pm – The federal government has struck a deal with Clive Palmer and the Senate has voted 36-33 to abolish the mining tax.

The agreement will see the Income Support Bonus continue until the end of 2016. The Schoolkids Bonus will also continue until the end of 2016 but will be means-tested and eligibility will cut out for family incomes above $100,000. The Low Income Super Contribution will continue in its existing form until June 30, 2017. The agreement will also see a slower increase in compulsory superannuation, with an increase to 10% from July 2021 and then by increments until it reaches 12% in 2025. [Read more…]


Joe Hockey Defends His Budget In Speech To The Sydney Institute

The Treasurer, Joe Hockey, has delivered an aggressive defence of his first Budget, in a speech to The Sydney Institute tonight.

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Hockey took issue with claims that the Budget increases inequality: “I would argue the comments about inequality in Australia are largely misguided, both from an historical perspective, and from the perspective of the Budget.” [Read more…]


Treasurer Joe Hockey Responds To ACOSS Concerns About Federal Budget

The Treasurer, Joe Hockey, has appeared at a forum held by the Australian Council of Social Service and taken questions about the impact of the Budget on welfare recipients.

The forum was hosted by ACOSS CEO Cassandra Goldie. It was one of a series of appearances by the Treasurer in the aftermath of last week’s Budget.

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Hockey repeated his remarks from a 2012 speech about The End of the Age of Entitlement that an expansion of the welfare system has resulted in extending welfare “higher and higher up the pay scale”. [Read more…]


In National Press Club Address, Hockey Says His Budget Changes The Country For The Better

The Federal Treasurer, Joe Hockey, says his first Budget changes the country for the better.

Delivering the traditional post-Budget Address to the National Press Club, Hockey said: “We now have a fire in the kitchen – we have to put it out.”

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Hockey claimed there is significant structural change in the Budget that “takes us back to surplus”. [Read more…]


Treasurer Joe Hockey’s 2014-15 Federal Budget Speech; The Abbott Government Arrives

The Treasurer, Joe Hockey, has delivered the first Federal Budget of the Abbott government, increasing taxation on high income earners and re-introducing fuel excise indexation. Big cuts in foreign aid head a raft of spending reductions across most government departments with health, education, the young unemployed and seniors hit hard.

The government has earmarked $11.6 billion for infrastructure spending on road and rail projects, and will establish a $20 billion medical research fund from a new $7 co-payment for visits to the doctor.

The Budget forecasts a deficit in 2014-15 of $29.8 billion, down from the $49.9 billion deficit for 2013-14. It predicts an economic growth rate of 2.5%, a consumer price index increase of 2.25%, and a small increase in unemployment to 6.25%.

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As revealed over recent weeks, the Budget imposes a 2% levy on people earning over $180,000. This is expected to raise $3.1 billion over 4 years. Indexation of fuel excise is re-introduced and is expected to raise $2.2 billion over 4 years. Company tax will be cut from 30% to 28.5% in 2015. [Read more…]


A Message From The Treasurer

The first Budget of the Abbott government is due to be delivered at 7.30pm tomorrow.

The Treasurer, Joe Hockey, released this video message today.

  • Watch Hockey (38s)

Government Releases National Commission Of Audit Report

The federal government has released the report of the National Commission of Audit.

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The report makes 86 recommendations – 64 dealing with budget finances and 22 dealing with public sector performance and accountability as well as infrastructure.

The Commission says: “The recommendations offer savings estimated at $60 to $70 billion per year within ten years. On top of this with the reduction of debt there will be a significant annual saving in interest.”

Amongst other things, the report calls for the income taxing power to be returned to the states in order to address vertical fiscal imbalance and to allow the states to be 100% responsible for policies in areas such as education and health. [Read more…]