Budget 2008:
“It’s about my House Stupid!”

Last night’s budget has been praised by the commentators, as a fiscal responsible conservative budget.

This is not why we voted in Mr Rudd.

We would have had these tax cuts from the previous government. Come to think of it, we did!  The previous government announced them and this government said “Me too”.

This budget is lacking in compassion and imagination.

The Treasurer, Mr Swan said he went through every single line of (apparently Mr Costello’s) budget and crossed out where he could make some savings.
“We need to cut spending, let’s cut 2% of every department” and those 3000 public servants that may loose their job are victims of the “Productivity Bonus”; warriors for the cause!

This budget will not really add to inflation. It will not really cut inflation. It does not really help the “struggling families”, it does not really “hit the rich”.
If fact it really does nothing new. The 3 “new” funds are merely and extrapolation of the previous government’s endowment fund.

Despite the rhetoric, this budget paid mere lip service to this government’s social responsibility. This is a liberal budget with a few minor political hits. This is not Robin Hood; this is Friar Tuck sitting on a massive surplus (from the previous government) and not giving it to the poor, no they are just sitting on it.

Looking at some of the items in this year’s budget for “Struggling Hard-Working Families”:

The 3 items that put most pressure on the household budget are petrol, groceries and housing.

In the last 18 months the average price of petrol has gone up from $1.06 to today's price of $1.52, an increase of 46 cents per litre. In the last 12 months, from $1.119 in March 2007 to $1.469 in March 2008, an increase of 35 cents per litre.
Add $17.50 per week.

Food prices increased 5.7% in the last year.
Add $11.40 per week.

Official interest rates have increased from 6.25% to 7.25%
Add $30.00 per week for mortgage.

Just on these 3 items alone, we are paying $59 per week more.

And what does our Government do about it? Our Government is: “Providing $46.7 billion of tax relief over the next four years aimed at working families." Budget Overview - 2008-09

So how much are these tax cuts?
Families earning up to $60,000 (no children) will receive up to $17.31 per week. Tax Calculator

So the real battlers will get $17.31 per week.
Sure “The Rich” are being hit. An increase in the luxury car tax and no baby bonus.  Big deal!

The family on $60,000 will have to make the decision: do we put petrol in the car and go to work, or do we eat this week, because with the $17, we can't do both.
And don’t even think about the mortgage – although if you can't afford the mortgage, you certainly can't afford the rent!

The government acknowledges this: “Housing stress now affects around 575,000 families with children, placing financial and emotional strain on these families.”

And what does our Government do about it? “To help Australians experiencing rental and mortgage stress, the Government is increasing funding for financial counselling services.” Budget Overview - 2008-09

It’s about my house stupid!
Money talks and bullshit walks, just ask my bank!