Federal Budget 2020: Where’s the demand?

Tonight’s Federal Budget delivered by Treasurer Josh Frydenberg was a dull affair that lacked ambition and included no real surprises.

As expected, the Budget deficit is projected to balloon:

However, the economic projections are rose coloured, with growth projected to bounce back strongly alongside a magical gradual return to trend unemployment by 2023-24:

Turning to the actual budget measures, there was little that hadn’t already been announced. Below are the key announcements.

JobMaker hiring credit

As announced prior, a new JobMaker hiring credit will be provided to businesses (other than the major banks) that hire younger Australians aged 16-35.

It will be paid at the rate of $200 per week for those aged under 30 and $100 per week for those aged between 30-35, provided they are employed for at least 20 hours a week.

Treasury estimates that this will support around 450,000 jobs for young people.

As MB noted on Tuesday, this scheme will likely be rorted en masse and will likely result in businesses shifting their wage bills onto taxpayers, not in more employees, with owners pocketing the extra profits.

On the positive side, the Budget also announced an additional $1.2 billion to create 100,000 new apprenticeships and traineeships, with a 50% wage subsidy for businesses who employ them.

This is good policy as it will help to arrest the collapse in apprenticeship numbers and funding over the past decade, and will provide much-needed training for younger Australians in areas of the economy experiencing genuine skills shortages.

Tax cuts

As already flagged, the Budget will bring forward Stage Two of the legislated tax cuts by two years, lifting the 19% threshold from $37,000 to $45,000, and lifting the 32.5% threshold from $90,000 to $120,000.

These tax cuts will also be backdated to 1 July this year, thereby providing 11 million taxpayers with extra disposable income, with more than 7 million Australians receiving tax relief of $2,000 or more this year.

The Low and Middle Income Tax Offset will also be extended for an additional year.

While MB does not oppose the Stage Two tax cuts, we also believe that it won’t do much to stimulate the economy, given most of the income will be saved rather than spent.

Business Investment Incentives

Small, medium and larger businesses with a turnover of up to $5 billion until June 2022 will be permitted to write-off the full value of any eligible asset they purchase for their business, with the goal to stimulate sagging business investment.

Infrastructure

The Budget announced an additional $2 billion of investment into road safety upgrades, alongside an additional $1 billion to support local councils’ immediate upgrades of local roads, footpaths and street lighting.

Regions and environment:

Key measures to support Australia’s regions and environment include:

  • $2 billion in concessional loans to help farmers overcome drought
  • $350 million to support regional tourism to attract domestic visitors
  • $317 million for Australian exporters to access global supply chains
  • $2 billion in new funding to build water infrastructure across the country
  • $1.8 billion in funding for the environment
  • $250 million to modernise our recycling infrastructure

Housing

As already announced, an additional 10,000 first home buyers will be able to purchase a new home sooner under the First Home Loan Deposit Scheme. This comes on top of the 20,000 places already offered.

An additional $1 billion of low cost finance to support the construction of affordable housing was also announced.

NDIS

An additional $3.9 billion will be provided for the NDIS.

Seniors

Aged Pensioners will receive an additional $250 payment from December and a further $250 payment from March next year.

23,000 additional home care packages will also be provided to senior Australians who want to keep living at home, at a cost of $1.6 billion.

National Security

An additional $450 million will be provided for law enforcement and intelligence agencies to counter foreign and domestic threats.

Initial Impression – Where’s the Demand Stimulus?

In normal times, I would not have any major concerns with this budget. It is a fairly conservative affair with not too much pork, save for some excessive wage subsidy giveaways to business.

The problem is, these are not normal times. This is the biggest economic contraction since the 1930s Great Depression. And viewed in this light, the budget badly lacks ambition.

What stimulus there is focuses on the supply-side at a time when Australia already faces a gigantic output gap and excess capacity everywhere.

Meanwhile, the budget contains no meaningful measures to stimulate demand, which has collapsed:

It should have included measures that boost income support to the unemployed (e.g. by permanently lifting JobSeeker), as well as provided traditional Keynsian stimulus via big investments in public building works and infrastructure, among other things.

Because of these oversights, the Australian economy will face a longer and deeper downturn than necessary with stubbornly high real unemployment, widespread business failures, and increased homelessness.

The best the Australian economy can now hope for is a slow, low-wage, part-time recovery.

Leith van Onselen
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Comments

  1. RobotSenseiMEMBER

    Every single business that employs casual young staff is going to hire 5 new <30yo's, put them on 20hrs/week, cut everyone else's hours to keep the wage bill the same, pocket the money, and make $1k/week for doing nothing.
    This will be rorted beyond belief.

      • RobotSenseiMEMBER

        I feel genuinely sorry for young casual workers. They have been politically p!ssed all over for a generation and at every turn labelled lazy, indulgent, entitled, etc. “Go have a gap year picking fruit” or some bollocks alternative to the next wave of uni graduates fighting over the 3 jobs (not permanent, mind) that wait for them every year.
        Goodness me.

    • How is that a rort actually?
      So a lot more people get closer to 20hrs a week.. It is just a way of spreading the few jobs around to the most number of people, especially the young. Across the pond NZ were talking 4 day week for the same effect.. I feel this outcome would actually be the best and would be skewed to the young.. they sacrificed the most during this downturn to save the older gen.. makes sense they be prioritised for recovery.
      Yes the “virus can get anyone” but lets be real, the younger you are the far more likely you would have survived.
      What do the older people get? Well, they get got their lives saved from a virus. You can send your thanks to the CCP.

      • 20 hrs a week doesn’t get you ahead, it’s just survival mode. Not something to look forward to and not likely to get much better.
        What a sh#t life to look forward to.

      • If I were an over-40 doing 20 or so hours paid work a week I would be feeling very nervous about my ongoing employment prospects at this point.

        • GunnamattaMEMBER

          With the exception of maybe 100 thousand people involved in mining, and a much smaller number of farmers, just about everyone in Australia – whether they know it or not – is a public servant. Real public servants have their conditions etc underpinned by the Public Service Act, the vast majority of Australians have their employment conditions contracted out to a range of vested interests masquerading as their employers….

          • my toranaMEMBER

            With the exception of farmers? Or do you mean a handful of farmers aren’t subsidised?
            Given we don’t tax our natural resources properly, where does all the money come from?

          • Gunna And the Treasury isolated in Canberra run by Steven Kennedy has just given these public servants who have been immune from pandemic loss, income tax cuts. Tax cuts for instance too for the incompetent Andrews Govt. This is a disgrace that this has been enacted whilst a lot of small business is on the ropes. Now the public servants as a group can buy up assets from the distressed small business sector. Frydenberg has been snowed by Treasury-is he that dumb?

    • Every single business that employs casual young staff is going to hire 5 new <30yo's, put them on 20hrs/week, cut everyone else's hours to keep the wage bill the same, pocket the money, and make $1k/week for doing nothing.

      What do you mean “doing nothing” ? Look at all those new jobs they’ve created !

    • Well, duh!
      When you’re spending ‘other people’s money’ a poorly designed and executed scheme is precisely what you’ll get. Every time.

    • My sister-in-law owns a bakery, I’m going to get her to hire my wife as an apprentice baker, pay her, receive government rebate, get my wife to buy an Investment Property, pay my sister-in-law back the wages earned from the rental income. Deduct the interest from income, pay no tax HAHA….how many of those scummy people (we know the ones) are going to do something similar.

  2. Goldstandard1MEMBER

    I don’t get this budget.

    It’s like they took the already signed off plans for the next three years and brought them forward. No innovation at all despite a once in 100 year event.

    Australia is in trouble.

    • Pretty straightforward LNP budget. Cut taxes and investment incentives (subsidies) for their mates. Usually they ratchet these along the years, this time COVID means they can front load the cost and the deficit is so bad that an extra 10bil is just a rounding on the sensitivity analysis of the scenarios. The usual return to trend nonsense is the foundation of all the numbers, brought to you by the magic pudding Treasury and RBA.

    • indeed and I said this (we are in trouble) many times but people are focusing on Chyna. We need to clean our own backyard first. We are at a point where we need to strip 50cm of the top soil and burn everything above it.

  3. They never learn either. Very few of their heroic assumptions ever come to pass, but here we go again. Nothing for the University sector – they really don’t like academics much.

    • The assumptions fit the narrative the government of the day wants to tell. Basically makes the entire forecasting/ budget exercise a complete waste of time. Pitch the budget narrative in May take out some of the trash in MYEFO in Dec. Then come the next budget, it’s all about the next year.

      • Arthur Schopenhauer

        Most people in so called ‘real jobs’ wouldn’t survive as an Academic. Universities are not what they were.

      • there are some useless academics. there is no doubt about it but most are brilliant people that teach students skills so students, once they graduate, can get those real jobs you are talking about. Therefore, academics are working in real jobs.

        • With some exceptions (eg dentistry, medicine) most of what is learned in university could be learned on the job in a fraction of the time of the university degree.

          Most academics are scared of losing their job because they know how much the market values their skills (in most cases, zero value).

          • Indeed.

            I mean, other than nurturing nearly all the real innovation that private industry goes on to monetise, what has academia ever done for us ?

            There are certainly a bunch of people are at Universities when they should be in technical colleges or apprenticeships, but that is not an argument against academia.

            Most academics are scared of losing their job because they know how much the market values their skills (in most cases, zero value).

            Just because “the market” says something has “zero value”, does not mean that thing is actually worthless.

          • Just because the market says something is worthless doesn’t mean it is?
            It’s not conclusive, but it’s certainly pretty strong evidence. The market isn’t perfect, but it’s a pretty strong informative tool.

            As for universities nurturing nearly all the innovation: such hubris!

            There are snippets of this around, but the vast majority of research undertaken by universities is based on journal publishing, articles read by no one else other than other academics. Most innovation is undertaken by the ‘evil’ private sector — you know, the market that most academics hate and can’t survive in.

          • Just because the market says something is worthless doesn’t mean it is?

            Sure. Your average unskilled labourer, for example, is basically worthless in the market because they’re an interchangeable cog in the machine.

            That individual’s family, however, would (probably) disagree about how worthless they are.

            As for universities nurturing innovation — there are snippets of this around, but the vast majority of research undertaken by universities is based on journal publishing, articles read by no one else other than other academics.

            Up until it becomes something practically monetisable. Business generally employs academics more to sift the wheat from the chaff (ie: read all those research papers), and then turn them into something that can be sold, than to do new research.

            Business, generally speaking, doesn’t do fundamental, cutting-edge, new stuff. It is way too risk averse. That comes out of Universities and publicly-funded/subsidised/protected instututions who can operate with the luxury of not needing to make money.

          • Most businesses don’t innovate, and most university research is far from innovative either. As for the private sector sifting through university research and finding something useful/relevant, this is hardly widespread.

  4. GunnamattaMEMBER

    In a lot of respects this is a fake budget. It is all fake now. What do we have in the budget – a pretty standard load of ideological cherries, some givaways, and some parsimonious gifts from those telling us they represent lifters to those they see as leaners – the problem is there are so many in the latter camp now that one must surely wonder if we collapse into a mega demand hole as early as the end of JobKeeper and the reversion to normal insolvency rules.

    That would generally mean that in the lead up to the next federal election there could be an electorate looking for heads on sticks. They may well be still, only they aren’t likely to be looking at the ALP.

    But I think the punterariat is now starting to see the faux almost everywhere. And slowly but surely we are starting to twig. The advent of COVID19 and its impact on the Australian economy has been to witness the mounting doubt about what the hell is ‘real’ about the Australian economy, and about what the hell has been the reality of Australian economic performance over the course of a generation.

    If we start with the quite logical questions which started cropping up some time ago – like this What has this Coalition government actually achieved in seven years? https://www.smh.com.au/national/what-has-this-coalition-government-actually-achieved-in-seven-years-20200911-p55uqa.html And from articles like that conclude that maybe Sweet FA is the answer – particularly after moseying over to the Liberal Party website https://www.liberal.org.au/achievements-government) where they have their Sweet FA credentials plastered all about in such a way as I would have thought would lead to embarrassment but which it appears they have no shame about

    But it isn’t just the Torynuff side of politics which is fake. A couple of days after the serving of Liberal nothingness came a reminder of why they have had seven years with their hands in the till…….an ALP which is not just leaving an imprint on the electorate akin to a ‘Here’s Lucy’ episode seen for the 90th time but which seems to have deliberation processes revolving around providing ‘Here’s Lucy’ vintage responses to the biggest economic jolt the country has had in generations. Albanese flags an eight-point economic plan as key to COVID-19 recovery https://www.smh.com.au/politics/federal/albanese-flags-an-eight-point-economic-plan-as-key-to-covid-19-recovery-20200915-p55vyf.html

    For anyone who missed the ALPs serving of anodyne gruel this was the offering………….

    Labor’s eight-point plan
    1. Reverse cuts to JobKeeper and JobSeeker and expand JobKeeper to include casual workers
    2. Support small business through improving cash flow
    3. Invest in aged care and the care economy workforce, including child care and disability care
    4. Provide temporary financial support for community groups and charities providing essential services to vulnerable communities
    5. Improve labour market programs to support vulnerable job seekers
    6. Encourage local governments to bring forward plans for local infrastructure
    7. Improve compliance with the code of conduct for commercial tenancies
    8. Reverse decision to “freeze” the pension

    No need for revisiting the entire economic box and dice, no need to think about debt, the sorts of jobs we have been creating for a generation, or house prices. No vision looking at how we fund our services, and what the actual economic effect of endless tax cuts for people on 150k when the median income is circa 60 actually is. Of course that is after a glimpse at Albos photograph brings to mind the question of whether he is trying to look like someone from the 1940s and should wear a trilby to further the effect.

    Of course if that doesn’t alert us to the possibility we have fake politics and policy at the core of our political economy we got a reminder from a former ALP PM in the form of Paul Keating lambasting the activities of the RBA – The ‘Reverse Bank’ has to quickly rediscover the gear stick https://www.smh.com.au/national/keating-the-reverse-bank-has-to-quickly-rediscover-the-gear-stick-20200923-p55yh5.html Now if you think to yourself that the political economy has revolved around worship of the RBA for more than a generation, and that this worship was largely embedded by Keating, who defined it, and who bequeathed it to Costello and subsequent successors (who have never questioned or changed thing about the RBAs focus) then his comments were utterly damning. He nails it with…….

    The problem about central banks — and this is true of the Reserve Bank of Australia — is that it has become a sort of deity, where lesser mortals might inquire, however respectfully, what the exalted priests might be thinking or have in mind for their prosperity or the country at large.

    The only thing he misses is that it isn’t just central banks which cant be questioned these days. It is politicians, executives from large companies, senior public servants, and university vice chancellors as well….

    And that sort of brings us back to the fakes in power. They not only haven’t had an answer of any meaningful type in the seven years they have been in power, but now seem determined on giving us a reheated serving of exactly the same policy which hasn’t worked for that period of time. Our October 20 Budget gives us tax cuts weighted to those up the chain, a range of expenditure offsets which will no doubt be rorted, and a bowl full of magic mushrooms underpinning outlook forecasts. That pretty much guarantees us two things – 1 they will need to double up on the givaways as the paucity of the forecasts dawns more closely on the punterariat & 2. extra serves of utter bullshit all round as the government grasps for some electoral straw (lets keep or eyes pealed for the return of the population Ponzi at the earliest possible date and some prayers to Chinese iron ore purchases)

    But there isnt much there for anyone looking to completely revisit Australia’s whole economic box and dice and to make something productive of it – it barely rates a mention.

    Not for ScoMo’s government the experience of being dragged kicking and screaming to the need to have a Royal Commission into Banks and their activities, not for them the Royal Commission discovering that banks are fraudulently facilitating predatory lending on ordinary Australians. They have decided that we can have that all over again. ‘Responsible’ lending laws to be axed https://www.afr.com/policy/economy/responsible-lending-laws-to-be-axed-20200924-p55yvw ……only this time with all the debt that they accumulated last time around in the saddle right from the start.

    Not for ScoMo’s government a population already asking questions about the levels of immigration which have nailed wages growth to the floor and crowded infrastructure with a population Ponzi which since 2005 has run at 3 times long term average rates. Their monosynaptic reflex is to fire that Population Ponzi up again just as soon as they can. ‘Migration will come back’: Budget to reveal first negative migration since 1946 https://www.smh.com.au/politics/federal/migration-will-come-back-budget-to-reveal-first-negative-migration-since-1946-20201002-p561hr.html – without once asking the question ‘Are we growing the population to improve the lived experience of Australians or are we growing the population to improve corporate profits?’ and from there to ask ‘what are the effects on the lived experience of returning to the population Ponzi as we have run it?’

    Not for ScoMo’s government questions about the value of tax cuts focused on corporates who already openly minimise their tax payments and have been show to go to considerable length deploying whole accounting structures, transfer pricing, and related party loans to minimise their taxation. Not for ScoMo’s government questions about the marginal value of taxation cuts for high income earners which will undermine the budget for years to come. They want to serve up even more tax cuts and small government mantra. They want us to take trinkets and beads equal to half a mortgage payment for most Australians and give the uber set enough to really speculate some more. They are obviously planning to wipe out the budget for years to come on behalf of those who have no need whatsoever to spend, and who wont generate enough additional expenditure to float Australia’s ‘consumption’ driven economy across the hole we are now in.

    The paucity of vision is there for all to see when considering who isnt getting getting much at all from the budget – Australians over the age of about 30 paying off mortgages, particularly if they are single income households (on less than circa 100k) or have experienced a job loss. Young Australians hoping to find a career which might involve rising incomes. Those who dont own their homes. Those who may be remotely interested in investing in themselves. The epic number of Australians who are underemployed, if not unemployed, and would actually like to do something more. Most of all those unknown Australians of the future who might hope to own their own home and raise a family, or even hope to have meaningful employment within easy travel of wherever it is they can afford to find an abode.

    That brings us to the real point of the fakery. It is fakery to cover failure. It is distraction to avoid dud. It is Numberwang to head off political pain, it is ‘we can’t hear you!’ with fingers jammed into their ears by people we elect to parliament. It is ‘Free Trade’ ‘Low Taxes’ ‘Deregulation’ ‘Outsourcing of Public Services’ ‘Non disclosure’ and ‘There has never been a better time to buy’ as offered by people who have ‘You signed a contract’ in the back of their minds and want you to spend 25 minutes on the phone wasting your time before you hear ‘You calls will be recorded for coaching purposes’ and getting to talk to a peon who cant help you anyway.

    That fakery is you being superglued to the neoliberal seat as you wonder if something somewhere is burning.

    • The Traveling Wilbur

      Well, they did do one thing well, partly. They made sure landlords would (indirectly) have moar access to tax payer funds. (moar than before the budget)

    • Ukraine fnMEMBER

      The one thing that is burning is my rage and dismay of the situation. Kudos Gunna to another tour de force assessment .

    • You forgot point 9 of Labor’s plan, assign what remaining sovereignty to Chyna. Actually, I think LNPs stance here has been their defining policy, and worth the price we see daily.

      • GunnamattaMEMBER

        I would slag the ALP off no end on that basis pretty much alone.

        That said, I do find myself wondering where ScoMo and Josh are going to take that, because once the Chinese ease back on the iron ore purchases (bearing in mind they have about a years worth sitting on their docks) the Australian economy will need sanitary napkins and incontinence pants.

        • The Traveling Wilbur

          It’s ok Gunna. If that were to happen, about 8-months later purchases of Aus IO by Chyna would double current numbers (for all the prison infrastructure needed to house all the newly arrested Chyknees dissidents). Tanks for the memories.

      • Heard Albo whining on the ABC earlier about the unemployed over 35s not being given assistance in the budget and now having to compete for jobs with a younger workforce who were being subsidised.

        Sadly, Albo, didn’t have time to address the competition that would come from hundreds of thousands of new migrants he’s so desperate to welcome to this country every year.

        Migrants, of course, live in a parallel universe when they come here and have no impact on services and general amenity and do not compromise the employment prospects of locals.

    • Choose Life (in a pair of budget smugglers)!

      Don’t ask me, I just work here man.

      We don’t own the budget, the budget owns us.

      • The Traveling Wilbur

        Choose life indeed. (you make a noice point)

        Ironically, Ewan’s career really has, bottomed, since then.

    • Gunnamatta: If anyone needs evidence of how this analysis is pretty spot on, they just need to watch the 7.30 Report spot with Jim Chalmers, the apparatchik’s apparatchik who reports to the ALP’s Albo-tros:

      https://www.abc.net.au/7.30/shadow-treasurer-jim-chalmers-responds-to-the/12737396

      The same old tired political ping-pong narrative about debt. The very same economic effluent and points scoring game that’s driving anyone capable of thinking around the twist. Dandy racketball played by the ideologically disabled.

      Both the ALP and LNP are criticising each other about how the deck chairs should be arranged as as the Titanic tilts. The LNP is abandoning its high principles of neoliberalism and globalisation on steroids that sunk the west, in order to float the boat so that it might catch the next debt tide. The ALP sits back and critiques the colour and flavour of the plan. But none of these tools has seemingly noticed that the sea is running dry, there is nothing left to float an economic boat in. Something far more fundamental has happened and no amount of fake budgeting and rhetoric from a boof-head on budget-night is going to correct a course that has Australia beached like a whale in an economic desert. We’ve been led there by political navigators who did not know north from south.

      What is the price of pitchforks at Bunnings these days?

        • The Trojan Fibreglass Handle Digging Fork for $29.98 looks like it would do the job. Trojan tools are made in China by the “same parent company that owns Bunnings”. But I think that’s kind of ironically appropriate when driving home a political ‘point’ in Australia.

        • You’re right. This spading folk has a solid hardwood handle and really nasty looking flat blades that could be sharpened with a bastard file whilst watching parliamentary question time. Twice the price, but something that could be left to a few generations of those in the family wanting to have relevant instruments of democratic defence on hand. But will he be able to keep up with demand? Every Australian should buy one before they are banned.

          https://www.fdryan.com/store/p35/Spading_Fork_-_Long_Handle.html

          • Arthur Schopenhauer

            Gotta start small Dom. From little things, big things come.

            You don’t start manufacturing a Ferrari. You start with bikes and scooters.

            The Apple 1 wasn’t much of a computer, and certainly not an iPhone.

            Making stuff needs an ecosystem for it to survive. All makers, big and small feed into that ecosystem.

          • Arthur, but what do you do if you like to start small but the business you like to buy is already very large business? As long as money are not the issue then you buy that very large business and let Scott and Josh manage it for 12 months. Voila, Small business for you to grow.

        • “Gotta start small Dom. From little things, big things come.”

          Indeed. But small is likely to be where it remains — small quantity, high value items.

          No western economy can sustain mass-produced goods.

          • Arthur Schopenhauer

            From first hand experience I know that’s BS.

            With the greatest respect, get out from behind your spreadsheet and walk around your local industrial estate.

            Small quantity, high value is a myth. It’s not possible without the support of medium quantity, low value manufacturing.

          • I work on an industrial estate Arthur – the only large-ish businesses I see are Logistics companies. The rest are small to medium boutique-y types.

            There is almost zero chance of major mass-market manufacturing businesses existing here — labor costs are too high, Straya is grievously oevr-regulated, land costs are insane and the country is geographically sub-optimal in its location.

        • blacktwin997MEMBER

          Awesome, thankyou! One of those 7-tine two-handed broadforks would be just the ticket for the front of the car too.

    • Great work, I’d only add that all these proposed budget measures will be just pis5ed away because our labour force is not organized to be Productive (in any sense of the word)
      I suspect a return to Productive labour can only happen if our country agrees on a suitable Industrial Policy, unfortunately at the moment Industrial Policy is a dirty word most often associated with failed Communist states, but it doesn’t have to be that way.
      Industrial Policy should also not be confused with the government picking winners, nor should it take the form of rewarding mates for rorting the system, I guess with these two caveats included Industrial Policy belongs in the children’s library with all the other Fairytales …ah but wouldn’t it be nice!

    • bolstroodMEMBER

      I think you are a bit unfair to Magic Mushrooms.
      The whole parliament would be a better place for the ingestion of Gold Top Soup.

  5. I’m surprised by the lack of house price boom ideas. Not surprised by the lack of any other ideas.

    • That’s true. They probably think they’ve done enough. If things slow they can have another catch in May next year before the election.

      • This.

        It’s a little frothy in places right now so Scomo feels emboldened, but I think they’ll be caught cold next year, then we’ll see emergency stimulus.

  6. I wouldn’t say it totally “lacked ambition”. Net migration is to revert to 200000, a level totally unknown (we forget this) before 2007. The Empty Chair won’t even refer to this in his Budget Reply. The Fake Greens will love it.

  7. Even if PH stayed at home doing nothing, voting PHON first and greens and main parties last will fix Everything.

    The stated in writing policies of PHON are force enough.

    With Labor unelectable, sacred cows would need slaying to gain working class voter share.

    Burn the system to the ground.

  8. Channel 9 just interviewed some Howard battlers , they reckon it’s a great budget for the following

    – the husband reckons the massive infrastructure spend so his 1 hour commute to work will now be less LOL

    – the daughters who claim they work in finance, but really mortgage brokers aka sales reckon that the 10k positions for new builders is great for their investment properties LOL

    – the wife who works at H&R block reckons that instant asset write off is going to help her 120 clients LOL

    -the guy with his wife who didn’t use a rubber so now they created a child reckons those tax cuts are going to help him with the new kid they got LOL

    This country is rooted.

  9. On the positive side, the Budget also announced an additional $1.2 billion to create 100,000 new apprenticeships and traineeships, with a 50% wage subsidy for businesses who employ them.

    Is this going to subsidise them through to the end of their apprenticeships, or is it going to be like previous schemes and only for the first year ?

    Because all that does is get kids hired for 12 months then cast aside when their subsidy disappears.

    • happy valleyMEMBER

      12 months will be long enough to get SFM to an election, win control of both houses of parliament and then unleash WorkChoices 2.0 which will fulfil the wage slavery dreams of John Howard and the LNP RWNJs more than they could ever have hoped for.

      • Totes BeWokeMEMBER

        We’ve already got Workchoices via immigration, getting worse and worse thanks to Labor.

        Labor are a joke. It’s time you worked out they are responsible for us getting an LNP government.

        Their agreement to a big Australia is responsible for LNP being able to run a very high immigration program.

        Stop kidding yourself. There’s only one way to get rid of LNP and big Australia. Wipe Labor out.

      • Totes BeWokeMEMBER

        Workchoices?

        Big Australia unions. Australia has jumped the shark.

        From here, we’re going to get what we deserve. That is turbocharged Workchoices via big Australia LNP or big Australia Labor. Well done mate.

  10. I thought MB would be cheering this one. No big housing/property policy and no immigration boom policy.

    Only Australian’s can push property prices up for the next couple of years until immigration returns to normal 200k+ per year

  11. SFA for older workers.

    These subsidies will just incentivise more discrimination.

    What use are tax cuts if you don’t have a job?

    Since when have treasury forecasts ever come true? Those numbers are based on the assumption that everyone get the jab in 2021. That’s not happening.

    Useless.

    • If Utopia has taught us anything, it’s that there will be and endless stockpile of these.

  12. working class hamMEMBER

    Ram’s, F250’s and Landcruiser’s to the moon. Construction industry which a major percentage is sub-contractors, will be living high off their new serve of Govt pork. Tradies and most other self employed are the Libs staunchest supporters, election bought right there. Perma Apprentices/Trainees that are hired only when high volume, low skillset work is reqd, then canned when the project is completed. Further incentives for high turnover of staff, with the cash falling directly into the business owners pockets this time.

    • Arthur Schopenhauer

      Yep. It disproportionately favors construction over all other industries. (Excluding Banking, which is a Racket, not an industry.)