Federal Budget 2015: Lifters and leaners are out, fairness and families are in

After his first Budget went down in flames amid claims it was unfair, mean spirited and even wrong headed, the Federal Government has delivered a resounding apology.

 

Sort of…

 

Treasurer Joe Hockey denies his second budget was packed with handouts but commentators are already hailing it as a remarkable about face from last year’s tough talking approach.

 

To Hockey, it is a fair and responsible path to surplus. According to his opposition counter-part Chris Bowen we shouldn’t believe a word of it and to the political tacticians it appears the first step towards an election-footing.

 

Last year business was going to stand on its own two feet. This year the Hockey was energising it.

 

While the 2014 criticism centred on tax increases (or supplement cuts, depending on your point of view). This year Mr Hockey delivered a raft of new deductions for farmers, entrepreneurs and small traders.

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From 1 July this year, small companies with annual turnover of less than $2 million will have their tax rate lowered, from 30 per cent to 28 and a half per cent.”

Job seekers in 2014 were set to receive a whack with stick. This year they get a nourishing carrot.

Plans to force job seekers over the age of 30 to wait six months before accessing the dole appear to have vanished in the kinder, gentler budget.

 

“This will include a new $212 million Youth Transition to Work programme that will fund community workers, on the ground, in high youth unemployment areas,” Hockey said.

“Furthermore, there will be an additional $106 million of intensive support trials for job seekers of all ages, who are facing the most significant barriers to employment.”

This Government will invest more than $330 million to help young and disadvantaged Australians get their start #Budget2015

— Joe Hockey (@JoeHockey) May 12, 2015

 

Changes to childcare are set to make it cheaper for mothers to return to work and more than $300 million will find its way to drought-affected farming communities.

There is no reference in the 2015 budget speech to sacrifice for the good on the nation.

This year the budget is about gentle encouragement.

 

The Treasurer, who was feeling as much political heat as he was budgetary pressure, heading into tonight’s speech has also discovered a way to fund his Medical Research Future Fund without risking voter fury over GP co-payments.

 

A billion dollars will find its way to the floundering fund, but savings from the Pharmaceutical Benefits Scheme will do the work instead of attempting to price minor ailments out of the GP clinics.

 

Thirty multi-national companies will risk seeing their tax bills double if they are caught off-shoring profits. This follows a loud outcry in 2014 when tax affairs of big businesses failed to rate a mention beyond their freedom from carbon and mining taxes.

From 7:30pm tonight, small business can claim an immediate tax deduction for each and every item they purchase up to $20,000 #Budget2015

— Joe Hockey (@JoeHockey) May 12, 2015

 

And despite the $1.6 billion which will still find its way to the PBS and a more than a billion for “keeping Australia safe and secure”, Mr Hockey says he has also broken the back of the “debt and deficit disaster” and declared a $7 billion surplus within three years.

 

Many of the unpopular measures that put the Senate off side remain, however, and the success of the Abbott’ Government’s still hinges on its ability to pass savings measures that may remain deeply unpopular.

Follow Ben Brennan on Twitter @BenBrennanY7