May 14, 2014

The vindictive budget: how the fiscal burden is loaded on low-income earners

The burden of reducing the deficit in last night's budget falls disproportionately on low- and middle-income earners -- while companies and high-income earners will come out ahead.

Bernard Keane ā€” Politics editor

Bernard Keane

Politics editor

In contrast to federal government claims that all Australians are sharing the fiscal burden, more than 60% of the spending cuts and revenue measures revealed last night will be borne by low- and middle-income earners or are regressive in nature, while corporate Australia will enjoy a multibillion-dollar windfall courtesy of an array of Coalition commitments.

Of the $36 billion in high-profile spending cuts in the budget, low- and middle-income earners, the unemployed or students, and people in developing countries, will wear $20 billion of them, with another $4.7 billion in regressive measures, like the GP co-payment, across the whole community. Of the $7 billion in new revenue measures, the $2.2 billion fuel excise is regressive, while the $3.1 billion deficit levy, aimed only at people earning over $180,000 — or more correctly those unable to structure their tax affairs to get their taxable income below $180,000 — is the sole measure aimed at high-income earners.

Free Trial

Proudly annoying those in power since 2000.

Sign up for a FREE 21-day trial to keep reading and get the best of Crikey straight to your inbox

By starting a free trial, you agree to accept Crikey’sĀ terms and conditions


Leave a comment

31 thoughts on “The vindictive budget: how the fiscal burden is loaded on low-income earners


    Its about time that these lazy fat cat:
    young people, students, working families, pensioners, indigenous and disabled, “leaners” along with those indolent state funded health and education systems, corpulent public broadcasters, leftist CSIRO, bleeding heart humanitarian foreign aid and the arts all did their fair share of the heavy lifting. How else would it be possible to give Australias true battlers Gina Reinhardt and Twiggy Forrest the carbon and mineral resources tax cuts totaling 3.4 billion that they so desperately need along with the diesel fuel excise rebate. Those doing the heavy lifting will be content in the knowledge that their sacrifice is making Australia a fairer and better place for struggling mining magnates, media moguls and all other assortment of multi millionaires and billionaires. Australia, the worlds most egalitarian country…………for the rich and super rich.

  2. cairns50

    totally agree with you bernard this is the budget of bas….tds what they are doing is imposing thatherite and reagonomics on aust even if it is 20 years late

    time for a peaceful peoples revolution

  3. Alex

    This budget looks like it’s straight from the Fox’s mouth.

  4. Recalcitrant.Rick

    Love that last paragraph! This budget has nothing to do with economics! It’s ideology, pure and simple, and it’s flawed ideology! Show me where it works?

  5. MJPC

    Thank you BK, finally a commentator has stated the bleedingly obvious about the levy…tax…levy:
    “or more correctly those unable to structure their tax affairs to get their taxable income below $180,000ā€‰”.
    In 12 months time please present a report with names of those within the Federal Parliament LNP who have paid the levies, being a hotbed of family trusts, negative gearing and free enterprise rorting of the tax system the proletariat don’t have access to.
    Carins50…I am with you: peaceful revolution now!

  6. gypsy

    A vision for the nation’s future …or a vision for political survival beyond the next three years ….

  7. Electric Lardyland

    Well, Rick, the most committed rightard would probably claim Chile. But’s that’s only if you ignore the murder of an elected president, the torture, the union busting, the death squads, the years of recession, the plundering of the national wealth by foreign multinationals and the fact that the economy didn’t improve until most of the ‘reforms’ were overturned. Strangely, many neo-cons do ignore that list and use the example of Pinochet’s Chile, as a demonstration of why their fundamentally flawed economic extremism works.

  8. Chris Hartwell

    At least in all of this, the claim that Medicare is inefficient or that it’s not cost-effective has been shown to be a bunch of hooey (a bunch of Hockey?) as demonstrated by the hypothecation of the majority of the GP tax to research rather than covering expenses. Some benefit at least!

  9. David Hand

    You can have your peaceful people’s revolution in 2016. It’s called a federal election.

  10. taciturn

    But David, Abbott expects that you have forgotten by 2016 …

Leave a comment

Share this article with a friend

Just fill out the fields below and we'll send your friend a link to this article along with a message from you.

Your details

Your friend's details