Budget 2014 Live: Joe Hockey hands down harsh Budget

Welcome to the live coverage of Federal Budget 2014 - or 'bad news budget' as it's being labelled now, thanks to all the chopping, axing, and cutting that Treasurer Joe Hockey has flagged.

8:30 PM, AEST: So here's making sense of it all:

An unprecedented $80 billion cut to health and education spending over the next decade is among a slew of tough savings measures affecting pensioners, seniors concession card holders, family  payments and people on the disability support pension.

The Abbott Government's first budget had few surprises and very little promising news. Even the sweetners - like a new $20 billion medical research  fund – came with a catch. The fund would come from a $5 contribution by patients when visiting the doctor. Each visit will cost $7, with the other $2 going to the doctor.

Treasurer Joe Hockey described the document as "the budget that gets on with the job", delivering  on its election promise of no new or increased taxes, and no cuts to health and education.

8:10 PM, AEST: Here are the key highlights

• $7 fee increase for GP visits and cuts to hospital funding. Read more

• Pension age rises to 70 from 2035 and concessions cut.

• 16,000 agency jobs to go. Read more

• Under 30s face a six-month wait for a reduced dole.

• $20 billion Medical Research Future Fund.

• $11 billion in infrastructure spending

• Defence Spending to rise to 2 per cent of GDP within a decade

• More expensive petrol with a fuel levy

8:00 PM, AEST: Mr Hockey has wrapped up the Budget speech. "Unless we fix the Budget together, we will leave the next generation a legacy of debt, not opportunity. By everyone making a contribution now, we will build, together, a better Australia".

We will re-introduce fuel indexation where every $ raised by the increases will be linked by law to road-building budget #Budget2014 #auspol

— Liberal Party (@LiberalAus) May 13, 2014

7:55 PM, AEST: Here's the infrasttructure sweetner.

"Over the next six years, the Government will help build new roads, rail, ports and airports. Our Growth Package will stimulate the construction sector and create thousands of jobs. Our Growth Package will take the Government’s total investment to $50 billion by the end of the decade".

Mr Hockey also claims the Budget deficit will fall from its current $49.9 billion to $29.8 billion next year. It will then fall to a deficit of $2.8 billion in 2017-18

7:50 PM, AEST: In the health sector, Mr Hockey has announced the establishment of $20 billion Medical Research Future Fund, and has announced that Medicare will be simplified. "We are simplifying the Medicare Safety Net with lower thresholds for most people," Mr Hockey has announced. Read more here.

When you're earning $16.37 an hour, $7 to see your doctor is not a "modest contribution." #budget2014 #auspol

— Australian Labor (@AustralianLabor) May 13, 2014

7:45 PM: And...here comes the axe:

"Work gives people a sense of self, and work helps to build a sense of community. That is why young people should move into employment before they embark on a life on welfare. People under 30 will wait up to six months before getting unemployment benefits".

So according to Joe those under 30 should be learning to earn. I have a Uni degree & 2 Tafe cert's what more do i have to do? #Budget2014

— Karissa (@thunder_67au) May 13, 2014

Our Paid Parental Leave Scheme will help keep mothers engaged with the workforce #Budget2014 #auspol

— Liberal Party (@LiberalAus) May 13, 2014

 

7:40 PM, AEST: The Treasurer has announced the carbon tax and mining tax will be abolished. He has also forecast a deficit of $29.8bn in 2014-15, narrowing to a $2.8bn deficit by 2017-18. He has also announced an increase in pensionable age to 70 years by 2035.

"To make pensions sustainable, from Sept 2017, increases in pensions will be linked twice a year to inflation".

People who pay too much into their superannuation fund won't now be slugged with extra tax - provided they remove the excess money.

The government is also slowing the timetable for increased compulsory employer contributions.

Labor had planned to reach 12 per cent by 2021-22. That's now being put back a year.

The current contribution rate is 9.25 per cent.

Mr Hockey says economic growth is expected to be lower in the 2014/15 financial year at 2.5 per cent, against 2.75 per cent this year.

It won't pick up until after 2016, and only to 3.5 per cent, as the economy continues to transition from the mining investment boom to broader based growth.

Mr Hockey has further ratcheted up the budget deficit to $50 billion for this financial year, and it will be the second highest on record in dollar terms, from $47 billion in the December mid-year budget review.

7:31 PM, AEST: Treasurer Joe Hockey has begun his speech.

"Our future depends on what we as a nation do today - for our families, seniors, individuals, diabled... the Givernment's solemn duty is to build a stronger Australia...Prosperity has to be earned. Now it's our time to do  that," Mr Hockey says.

"If we work together, we will build a stronger education system that can take on Asia. This Budget is NOT about self interest - it's about national interest".

"The age of entitlement is over. The time to fix the Budget is now. The time to contribute is now".

7:00 PM, AEST: Just in: Word from the Prime Minister

This Budget is a watershed moment when a bold, new Govt does what has to be done to set the nation on a better course. #Budget2014

— Tony Abbott (@TonyAbbottMHR) May 13, 2014

Right. So here's a lowdown on the Budget nasties expected tonight:

• Increased petrol taxes

• A new deficit levy on high income earners, new co-payments to visit the GP and emergency departments

• Increased pension age to 70 years

• Reduced welfare benefits

• Increased university fees

• Reduced Paid Parental Leave

6:45 PM, AEST: First up, here are the two big headlines as of right now - one of which is being considered a sweetener in an otherwise harsh Budget.

First, 7News political editor Mark Riley has reported that Treasurer Joe Hockey will announce a big injection of funds into medical research.

The Government will set aside $20 billion for the establishment of a Medical Research Future Fund.

The fund is expected to start with $1.1 billion, which will come from winding up the Health and Hospitals Fund, and grow to $20 billion by 2020.

It will be managed by the Future Fund board and pay annual dividends for medical research; $20 million initially, rising to $1 billion by 2023.

The catch? The funding will come from within the Budget as well as from "additional savings from health reforms in this and future budgets".

Is the new Medical Research Future Fund just a case of robbing Peter to pay Paul? #Budget2014

— Australian Doctor (@australiandr) May 13, 2014

The Budget is expected to introduce a co-payment of $6-$7 for bulk-billed GP visits, although the Commission of Audit recommended a much higher fee of $15.

The latest polls show that a $6 fee would stop almost four in 10 people from visiting their doctor.

Has anyone in govt thought of what impact GP co-payment will have on After Hours services (run by soon-to-be-abolished Medicare Locals?)

— Michael Woodhead (@mpwoodhead) May 13, 2014

Second, A $10,000 incentive will be offered for employers who hire workers aged 50 and over who have been on income support.

'A watershed moment'

Tony Abbott has assured his Liberal and National MPs and senators that the government has not "squibbed" the budget task.

"This is a watershed moment, when a bold new government does what has to be done to set the nation on a better course," he said.

Mr Abbott said the public will respect the government for the budget, even if there are parts of it people don't like.

"This is the right budget for our country. It is carefully crafted to do the right thing to our country, and to be fair."

The Prime Minister said Peter Costello's 1996 budget was the last hard budget - but this one has even more major reforms.

How will the evening unfold, and what does the Budget have in store for you? Watch this space as we bring you the live coverage of the Abbott Government's first budget, as well as reactions.

Some of the Budget nasties expected tonight include:

 

Increased petrol taxes

A new deficit levy on high income earners, new co-payments to visit the GP and emergency departments

Pension aged increasing to 70

Welfare benefits cut

Higher university fees

Paid Parental Leave reduced

At least 16,000 public servants sacked