THE AUSTRALIAN BUDGET

By Frances Harris

There’s a fine line between pleasure and pain. Consumer confidence is waxing and waning, the markets are soft; they’re on the rise, and they are taking a hammering in between languishing and flat lining. If you think it, Australia’s economy is doing it, hourly. According to our beloved Prime Minister Australian’s will be better off from this budget. I like our P.M but wouldn't vote for him, or the opposition. For what it is worth, I like to support anyone who isn't entrenched. That way I am free to poke fun at each of the major parties. I’m really looking out for a candidate with imagination, drive and a fresh approach to come along. Humphrey B. Bear isn’t available just now, so I’ll have to be patient.

As always, whenever we have a change of government ….they are taking the axe to the poor old Public Service again to eliminate waste caused by the previous government largess. So let’s talk about tax, the Prime minister’s favorite subject he doesn’t like to talk about.  We are a service based economy and we no longer have a goods based economy, with a burgeoning welfare dependent population who pay no tax. So what does he plan to do about it?

Slice and dice the old age pension of course. That way the oldies won’t be able to maintain their dwellings, then drive rickety, un-serviced cars, have more accidents and need more government help. They will have to lean heavily on their kids for support, which puts pressure on their marriages, increases the divorce rate, which will often put one parent and the kids, and sometimes the dad on welfare dependency for years to come. Five for the price of one. Then, the government will have to grow the Child Support Agency at Centrelink which will be expanding fast while other agencies are shrinking. Shuffle the sacked public service officers from the Tax Department to welfare. - Easy. 

So what do we do with the grandma’s and Grandpas whose houses have fallen down from neglect and they can’t live there any more: – give them rent assistance and subsidized housing of course. That is if they can find a place to live with most low income rental properties already taken and a waiting list as long as your arm.  There will have to be more dwellings built to cater for demand. Hospitals and Mental Health Agencies will balloon with sicker older Australians and their children and grandchildren who can’t cope with the new fiscal philosophy.

The children won’t cope at school and drop out early, maybe finding crime as their first best option to earn a living. They will raise new generation criminals who are heavily welfare dependent ad infinitum, ad nausea. Crime and psychology agencies will be greatly in demand and tax money will need to pour in as anxious criminals and victims of crime raise their voices looking for help. Insurance Company stocks will wilt on the stock exchanges from the weight of claims and well - healed investors may likely loose retirement savings and need to claim welfare when they retire.

A fuel tax amounting to another three cents per litre on the already thirty eight cent already being taxed will rout motorists and businesses. Its easy maths, consumers and businesses will buy less, earnings will be down and the economy will start to deflate. Small business margins and family budgets are paper thin right now so parents will have to cut childhood activities, and businesses from goods and services to make up for the extra tax.

On the upside, is said to be a heavy reduction in Sovereign debt and outstanding interest. So do we stimulate, or detonate the economy? Maybe it’s written in the stars.