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MAHATMA GANDHI ~ Truth never damages a cause that is just.
Monday, 11 May 2015
Budget 2015: devil is in the detail but it's all rather blurry
It’s easy to miss the big picture if you look at things close up.
It’s easy to miss the detail if you stand too far away. This year the
government is carefully positioning the public debate in the middle
distance from its second budget, just the right vantage point to see how
politically restorative and fair it all is.
The vantage point is close enough that we might miss some of the big
questions, like the gaping difference between what this budget does and
the case the government made until a few months ago for changes to bring
the budget back to balance over time. Or, God forbid, the case it made a
few years ago that deficits less than half the size of those it will
bring down on Tuesday constituted a “budget emergency”.
It is close enough to miss the logical implications of some of its
immediate political lines, like that one about Labor’s modest plan to
limit the huge tax loopholes available to the very rich through
superannuation tax concessions. If any change to a $30bn-a-year tax
loophole, which delivers more than 40% of its benefits to the top 10% of
households, constitutes an unconscionable “sledgehammer” to retirement
savings – as the government says – it’s hard to see what the Coalition
would do to raise tax revenue. But if it doesn’t do anything on the
revenue side of the budget, the savings needed pretty quickly move back
into the “unfairness” territory traversed by its 2014 budget effort.
But the debate is also sufficiently distant from the fine
print to blur some of the detail. The enthusiastically adopted
pre-budget theme of how hopeless/invisible/under threat Joe Hockey is
compared with the astute/omnipresent/rising star of Scott Morrison
is not entirely inaccurate. Hockey did do a lousy job of explaining
budget 2014 and Morrison is doing a good job of explaining his
pre-announced policies this year.
But the government has also completely changed the nature of the
policies it is advocating. Explaining and winning support for
progressive policies on aged care or super-generous policies on
childcare is not an enormously difficult task. And if this budget is
poorly received, it won’t only be Hockey’s job on the line. In the
meantime, as we debate whether Hockey is, or is not, in any way similar
to Greg Bird, actual policy details are being announced.
One
of those details is whether the government will actually see the $1bn
it says will be saved by ending “double-dipping” on paid parental leave.
Even if we put to one side the difference between Tony Abbott’s
“signature policy”, which offered women up to $75,000 in maternity leave
pay, and this new plan, which says the government won’t pay anything to
women whose employers already pay them the publicly funded rate of
$11,5000, this policy is unlikely to work. As the head of the Australian Chamber of Commerce and Industry told Guardian Australia,
employers are likely to offer their top-up payments to employees in
other ways, so they continue to be additional to the $11,500 available
from the government. Which obviously leaves a question mark over the
savings, as well as uncertainty for the new parents.
Another detail is whether the new generous childcare payments are
going to happen or not. Originally the government said they depended on
the passage of savings from tax benefit cuts, held up from last year’s
budget. On Monday the prime minister said they might depend on other, as
yet unidentified, savings. Given that the government has ruled out the
alternative savings nominated by Labor, and these payments are the one
of the budget’s central giveaways, it would be good to know.
The Coalition would prefer we stayed focused on the comfortable
middle distance view – that this is a fairer budget than last year with a
better chance of passing the Senate. This will probably prove to be
true. It would prefer we drew the conclusion that this means Abbott’s
government is back on track. That will depend on both the big picture
and the pesky details.
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