"So far, all the new Albanese government has given us is the Treasurer’s dire warnings about the tough times ahead …."

Yes. Chalmers has been described as a Town Crier rather than a Treasurer. But who listens anyway: a couple of economists and the usual windbags, with most of us just having to suck up whatever comes our way. I doubt that many people would be riveted to televised budget speeches.

One thing for sure, the honesty of a Labor Gvt, died with Whitlam.
What is presented as change of Government and its new policies, is nothing deeper than a change of Administration, not ideology, make no mistake.

New palms to grease, and old scores to settle, if they have the nerve of course; aptly pointed out here, Whitlam lacked the nerve to push ahead with cost savings that interfered with his hierarchy of friendships, like the scams of the Pitt Street farmers.

But, the continued attack on Welfare can be equally assured. while sectionalism will continue as a joint policy of previous look alike administrations, (The ambiguation of that one is the other end of pandering to the influential and ideologically favoured subjects, at the expense of democratic inclusiveness).

Dan

There are better ways in revenue garnering/spending. Real tax reform would first of all recognize what actual revenue reaches the ATO after all reductions/reconciliation issues are met. With that done, acknowledge that the highest tax in actual dollars after all tax deductions were made by any company, topped out at 13% with as many as 40% of companies doing business here paid no company to anyone. With other paying as little as 4%!

Allowable due to the complexity of the tax act which is so flawed as to allow such outcomes. We need to jettison the current tax act/tax collection methodology entirely, so as to ensure all profit/income earned here is taxed above a more than generous tax-free threshold.

For mine that's an unavoidable flat tax of 15% collected through the banking system as cash is transferred/withdrawn. This would include the billions take from this country by foreign firms operating here but like some of the offshore bookies taking more than 25 billion PA.

That's just a tip of a very large iceberg no government has seriously been willing to touch for reasons that escape me! We need to revisit the era of the Great Depression/look to volunteers to run boards/councils in return for expenses incurred only.

NDIS would be a good place to start, where there are obscene salaries/clear price gouging (fraud) of recipient's entitlements.

Those found or reported doing the two-tiered billing may need to earn some jail time or volunteer to work for free for a considerable period to avoid jail time, works for me. The CEO's position needs to be declared vacant, readvertised with very revised down, top salary

As for cutting spending, we need to bring back means testing, instead of funding service providers. Issue grants to means tested recipients who would then be free to direct that income that best served their needs in health education auxiliary service.

We need to get out of the business of outsourcing government responsibility! Which has simply increased outlays/reduced service provision/public amenity. TBC
Alan B.

I'm not an economist and much of the federal budget is
way over my head. However I a bit of what Katharine
Murphy had to say and to me it made sense.

She tells us that "Australia has big problems, and the
new government wants to bring the institutions of the
country to the table to start solving them."

She tells us that - "For a new Labor government, this model
of policy making has a couple of advantages. Building consensus
constructs and extends the base. It embeds rather than pits
against forces that would resist."

"A Labor program is harder to demonise when some of the most
powerful interests in the economy are at the tables, working on
solutions. That model of policy making bought the Hawke and
Keating governments 5 terms in office."

Cont. Then we need to seriously address energy policies, where some safe clean very cheap carbon free alternatives are off the table, due only to idiotic ideological imperatives/embargoes.

With those same embargoes removed, the nuclear option can be seriously examined on actual merit rather than current ideological imperatives, basically, all that stands in the way of power prices as low as 1.98 cents PKWH or less! And the huge economic boost/growth that would incur!

Pragmatists would allow the return/import of nuclear waste for the huge annual income that would provide, in the knowledge, that in MSR technology this is just unspent (carbon-free) fuel. Fuel that would power a robust economy for centuries, to very safely, in complete safety, to reiterate, power robust/debt draw down, economic growth.

Rooftop solar and wind turbines are as good as it goes, but we need something vastly better/less prohibitively costly for transport, industry, farm production, retail and service provision.

Simply put, a good businessman knows when to cut his losses and get out. Unfortunately, that's not also true of penny wise, pound foolish, recalcitrant, spend like a drunken sailor, tin eared Pollies. (Most of them.)
Alan B.

It's not the spending that needs cutting, it's the wasting on excessive salaries & idiotic projects funding. !

Its not in the nature of Labor governments to cut spending and anyone who voted ALP in May expecting fiscal rectitude is going to be sadly disappointed.

Of course, of late it hasn't been in the nature of Liberal governments to cut spending either but its is my hope (but just hope) that the Libs will eventually return to their basic principles and start to work toward fiscal responsibility.

The article claims that people want spending cuts rather than tax increases. That's probably true although people will only support spending cuts that don't affect them. So governments are stuck with a massive lockdown debt and little hope of getting out of it.

One way to do so is to inflate their way clear. It is said that half the reduction in this year's deficit is due to bracket creep and continuing that for a decade or two might be enough to build surpluses and therefore debt reduction. But again its unlikely that successive governments would permit this long term tax rise.

The only way to achieve deficit reductions is through dramatic wholesale cuts in non-essential areas. The new Swedish government just closed an entire government department - the Environment Ministry. We could do likewise. Equally we have an entire Federal education bureaucracy mirroring all the state ministries. Close it an give education responsibility to the states - or, better yet, the parents via vouchers.

I am pessimistic that governments of either flavour will have the fortitude to do what's necessary and the next generation or two will just have to exist on lower living standards weighed down by debt, inflation and high interest rates. And most won't even know why.

All social service, health and education needs to be means tested.

Multimillionaires shouldn't be using public hospitals/beds nor public schools.

And all that multinational tax avoidance ought to be sorted, so they pay the same rate on profits earned here as other businesses.

Do just that much and tax revenue would be doubled. and fair means testing would halve expenditure.

Social service that the taxpayer pays for needs to be for the needy, not the greedy. And given we do that, ensure it goes straight back into the domestic economy.

Paying tax needs to be seen as a privilege to live, work and play here. If that doesn't suit? Try Putin's Russia, the Ukraine, Tibet or England where the top tax rate is 45%. And VAT (same as GST) is 15%.

And let's be clear those with the biggest bank balances have other people, their bent backs and furrowed brows, earn their money for them!

It's a bit rich them for them to bitch about paying too much tax. Try England or France or most of Europe. Most would change places in a heartbeat with our wealthy or better off.

Profits have gone up exponentially while wages growth has stood all but still. Time that those bent backs and furrowed brows got a fair share of the income/earnings that created!

Christian inspired Cooperative capitalism comrade! And no, I won't wash my mouth out.
Alan B.

Eliminate the middleman and you halve the cost of living and the cost of doing business. Which that done our current social service would go twice as far and do double the economic work in our economy.

Enable cooperative capitalism and that would allow via the usual economic flow through factor, make every one dollar do the work of at least seven in the domestic economy.

Yes, there are better ways! But don't hold your breath waiting for the current crop to usher them in! Or long overdue tax dollar spending transparency!

Idiotic mindless ideology rules as do (yes Minister) public servant's pet projects/agendas.
Alan B.

Multimillionaires shouldn't be using public hospitals/beds nor public schools.
Alan B,
Add drug abusers to that list !

If there were a National service scheme, there wouldn't be homeless & those in that service would be tended to in their own & Military hospitals & facilities. More jobs, less crime, fewer sick, far less drug abuse ! Improving mentality ! Win, win, win !