Abbott Government Budget Essay

The first Abbott Government budget under Treasurer Joe Hockey’s effort puts in place steady and significant fiscal consolidation designed to give the Abbott government two big re-election promises – the return to surplus and the reward of tax cuts. The 2014/15 Australian Budget leaves Australians working longer, receiving less generous payments and lose income supplements as they age under wide-ranging tax reforms, an almost double in taxpayer spending on child care and an extra $7 co-payment for routine doctor’s appointments and tests from July next year. In his first budget, Treasurer Joe Hockey also paved the way for an increase in the 10 per cent GST to be taken to the next federal election. High income earners, families, students and the

The Organisation for Economic Co-operation and Development said “Australia’s economy continued to face near-term uncertainties as the resources investment boom unwinds and non-mining businesses were showing reluctance to expand” (Cadden, J., 2014).

The generation of Baby Boomers entering into retirement puts strain on the government and tax systems to fund and support them, essentially creating a need to raise taxes and decrease the general standard of living for all Australians.

Currently a main risk, domestically speaking, is that the “Federal Government is too aggressive in tightening budget spending, rather than relying on stronger economic growth to boost government revenues and thus, reducing the size of the budget deficit” (James, C., 2013). As the 2014-2015 Budget was nearing, Australians were concerned for the Government’s aim to appeal “an urgent repair job to address the looming structural crisis that would see the budget in deficit for decades to come” (Lewis, P., 2014).

Australian Federal Budget

This statement produces support of Ross Gittins’, of the SMH, statement: “I give Joe Hockey’s first budgetary exam a distinction of management of the macro economy, a credit on micro-economic reform and a fail on fairness”. After all the previous talks of a tough budget, the government delivered one (Coorey, P., 2014).

In response to Joe Hockey’s statement in the 2014/15 Budget Speech, “The age of entitlement is over. It has to be replaced, not with an age of austerity, but with an age of opportunity.” This year’s budget brings the mature members of Australia’s economy more opportunity to earn money; however, this may not be the fairest situation in order to do so.

Lastly, Henry Ergas from the Australian suggested: “The government’s problem is simple. Despite all claims to the contrary, Labour left an unsustainable inheritance”. The current state of the economy proves this to be true and the Liberal Party, who now has the leading role in Australia’s affairs, is maintaining and executing a delivery of a sustainable economic