Cwlth Budget Summary

[Q.]

Same could be said regarding the Carbon Tax. When most low/middle income earners see they are financially better off under the Carbon Tax, maybe they'll forget all the misinformation they read in the Limited News publications.

[mick]

It's only around $500 that compensation will be eaten up in year 1. This will be a bonanza for businesses to raise prices using carbon as an excuse. What a lot of people don't realise the 15 and 30% tax margins have been increased by 2%. Q do you send money to Nigeria?

[Q.]

Regardless of whether you hypothesize that compensation will be 'eaten up' beyond a year, the point is that the compensation will be noticeable in the first twelve months, just before the election. So the suggestion is that, alongside the other tax breaks, that it may have a positive impact on the ALP's polling.

[Q.]

Still won't be enough though

[Gozu]

Most economists predict the Carbon Tax will have less of a financial impact than the GST. I think the alarmist rhetoric from the Right suggests they know this too.

[Psyber]

Most economists predict the Carbon Tax will have less of a financial impact than the GST. I think the alarmist rhetoric from the Right suggests they know this too.

But some states, like SA, are suggesting that the GST needs to be reviewed as they need more money..
That may worry people more about the combined effect of the two taxes.

[Sojourner]

Most economists predict the Carbon Tax will have less of a financial impact than the GST. I think the alarmist rhetoric from the Right suggests they know this too.

Interesting discussion on the ABC this morning on the idea of raising the GST to 12.5% Some good reasons for and no doubt some against. In one sense its not a bad idea to give the states much needed funding to complete infrastructure projects, employ more people and so on. What likely goes against it was the promises made on taxes that were supposed to have been dropped in exchange for the GST which still remain. Good luck to the States promising that for a second time!

[Psyber]

It might make more sense to keep the GST at the easily calculated 10% but scrap all the exceptions that were introduced in the beginning.
In theory, an eighth isn't hard to work out for those who don't need a calculator to add 2 + 2, but for the others the extra keystrokes could reduce productivity..

The other concern is that if state governments learn that they can blow their budgets, then demand a GST rise to give them more money to blow, we may be heading for future trouble with demands for further rises. Isn't it time our states learned to work within their budget, and give priority to basics like hospitals and schools rather the to hiring more departmental propagandists?

Personally, I never liked the GST system.
When I was running a small business - a medical practice - I found the GST returns were a total pain as much of my business was exempt anyway.
But, you couldn't even elect to let the B's keep the little return they owed you - it had to be done to prove you didn't owe them anything.
It was either a lot of work to calculate from cheque stubs, or a lot of work entering it into software to generate reports for you, for relatively little money.

It is easier for larger businesses that can support enough staff to delegate the job, so the owners don't have to take time off from core duties to do the paperwork.

[scoob]

http://www.abc.net.au/news/2012-09-19/s ... it/4269980

One of the world's major ratings agencies, Standard & Poor's, believes Australia will record a budget deficit of $20-25 billion this year.

The agency has slashed its earlier estimate of a $1 billion surplus.


Surplus looks unlikely now.... I still don't understand why Wayne Swan would promised a surplus... will just be another broken promise for the libs to roll out come election time...

[Squids]

http://www.abc.net.au/news/2012-09-19/standard-and-poors-says-australia-heading-for-deficit/4269980

One of the world's major ratings agencies, Standard & Poor's, believes Australia will record a budget deficit of $20-25 billion this year.

The agency has slashed its earlier estimate of a $1 billion surplus.


Surplus looks unlikely now.... I still don't understand why Wayne Swan would promised a surplus... will just be another broken promise for the libs to roll out come election time...

Fools think surplus = good.

[GWW]

Householders generally like surpluses because reduced demand from Govt spending keeps interest rates down.

If little is spent on infrastructure though, that is probably a time when more needs to be spent by the Govt (which will reduce the surplus or possibly go into deficit )to try to enhance productivity within the economy.

[bulldogproud2]

http://www.abc.net.au/news/2012-09-19/standard-and-poors-says-australia-heading-for-deficit/4269980

One of the world's major ratings agencies, Standard & Poor's, believes Australia will record a budget deficit of $20-25 billion this year.

The agency has slashed its earlier estimate of a $1 billion surplus.


Surplus looks unlikely now.... I still don't understand why Wayne Swan would promised a surplus... will just be another broken promise for the libs to roll out come election time...

Fools think surplus = good.

As stated by Standard and Poors on Lateline last night, they were talking about the 2011/12 budget being in deficit. They believe that the 2012/13 budget will indeed return a surplus and have given Australia an AAA credit rating.

Cheers