The last touches of the federal budget are being added right now, most of the departments, so Defense, Education, Health and so on have done their numbers. It’s a matter of now writing the federal final budget speech, printing the documents and waiting for eight days when the treasurer hands it down. This year so far there’s been relatively little leak, that appears to be a new strategy of government, rather than workshopping its ideas, think raising the GST or changing negative gearing rules, it’s now springing policies on the community. The most recent example changed the Citizenship and 457 visa rules. That makes government look more decisive and gives labour less chance to hijack the debate with its own ideas.
Bill Shorten and Chris Bowen ahead in the polls are sensibly quiet about their own policies, they react to government. Now note the one thing’s supposed to be in the budget, a whole package to support first-time buyers has also been surprisingly quiet. That’s not that’s disappeared altogether, more likely that it’s not going to be the magic bullet some people would like it to be and that’s the problem with budgets these days, rather than containing the great shocks they once did, they tend to be conservative politically. It’s almost an ongoing narrative of our government will eventually solve the nation’s rising debt and deficit problems.
One of our country’s most senior economists Deloitte’s Dr. Chris Richardson is having none of it, he lays it out bluntly that this generation of voters and politicians the wealthiest this country’s ever seen, has stood by and allowed spending the rise with little constraint, while income has dropped. As he says, we have chosen to be high spending and low taxing nation and that’s unsustainable. Short term you can bet that government behind in the polls is not going to try and fix that problem this year.
There’s also an interest rate decision tomorrow it will be on hold. Let’s go to the market this morning and what we can see is the Australian dollar, seventy four point seven two US cents and sixty eight and a half euro cents. Gold prices up just a touch over the weekend, oil just below $50 US a barrel. The Dow Jones index on Friday down by 40 points and the All Ordinaries up by just three points.
Source: Today Show Money Minute/Ross Greenwood