If you are a high income earner, earn income from overseas, or have a large asset base, AND if the rumours have any truth to them, you’re in the firing line in the 2015/2016 Federal Budget.
The big question is where can the Government get savings into the Budget that will pass the Senate WHILE being palatable to voters?
The Australian economy is coming off its resources boom ‘sugar hit’ and as Reserve Bank Governor Glenn Stevens said recently: “The Government has little choice but to accept the slower path of deficit reduction over the near term”.
The declining iron ore price has blown a $30 billion tax receipts hole in the budget over four years. So, the question is: Where can the Government get savings into the Budget that will pass the Senate WHILE being palatable to voters?
Prime Minister Tony Abbott recently said: There will be tough decisions in this year’s Budget as there must be, but there will also be good news”.
This Federal Budget is not about what the Government believes is necessary but what it can get through the Senate.
Large structural reforms to tighten welfare, education and health have failed in the Senate in their current form.
This budget will be about moving thresholds and imposing restrictions on the existing system.