There was a story around that Mark Textor had a hand in the creation of the 2017 budget. Joe Aston in the AFR says Forget Mark Textor, JWS’ John Scales was the Treasurer’s budget pollster. Aston says that Scales, who was a protégé of Textor’s did the real work, or at least his company JWS Research.
However, Textor did play an important role. The Daily Telegraph reported back in early April that Textor’s research (for the Liberal Party) “highlighted the critical issue of housing affordability”, following which, ScoMo proposed changes to negative gearing that were shot down immediately by Mathias Cormann and Peter Dutton. Continue reading How the 2017 budget was made
As I said in the post on infrastructure and debt, Peter Martin heaved a sigh of relief that the Coalition Government finally understood that the services, infrastructure and welfare that we depend on to function have to be paid for, by raising revenue if necessary. Laura Tingle goes further. She says the Coalition has reset the debate on the role of government by moving to:
a more central position which embraces, and even advocates, a bigger role for government, both in terms of its fiscal position and its interventions in the economy, whether that be by building, owning and running airports or regulating product and labour markets.
She says that the government is actually seeking to own Labor’s modern signature policies – Gonski, the National Disability Insurance Scheme and Medicare. Continue reading Budget 2017: we live in a Labor world
Peter Martin states it directly:
Those sighs of relief are prayers of thanks for a budget that embraced reality: the reality that schools, healthcare, roads, railways, pensions, the National Disability Insurance Scheme and the other things that we want need to be paid for.
Except that almost nothing happens immediately except slugging the big banks. Spending, including infrastructure is weighted to the out-years, even beyond the normal four-year projections. Revenue improvement depends on heroic assumptions – $44 billion from income tax bracket creep from higher wages, when wages have actually been falling, more than 40% increase in company tax even though company tax cuts are assumed, an increase of 60% in capital gains tax receipts by 2021. Continue reading Budget 2017: good debt, bad debt infrastructure con?
Giles Parkinson says of the 2017 budget that Turnbull lets [his] fig leaf droop and stands naked on climate policy. Matthew Rose says Turnbull’s budget ignores energy crisis and dodges climate. The Conversation article is headed Budget 2017: government goes hard on gas and hydro in bid for energy security, which is I think misleading. It goes for gas and hydro, but not hard.
Before looking at what the budget has to offer, it is appropriate to remind ourselves that at the UN climate talks in Morrocco last year, Australia’s proposed effort was ranked fifth worst in a list representing 90% of the world’s emissions. Moreover, Frydenberg has been backsliding since then, suggesting we may not achieve zero net emissions until 2100. Continue reading Turnbull stands naked on climate policy