The 2025 budget will do little to fix the big problems facing Australia

By Joe Montero

The federal budget has been delivered and whatever the election campaigners might insist, it hasn’t delivered much. Business as usual is the best term to use. There are a few small give ways. After all, this is a pre-election budget. Maybe just enough to blunt Peter Dutton’ ambition to be Prime Minister. But overall, it will leave most voters underwhelmed.

A big deal will be made of the income tax cut for those that are on the lowest income. The 73-cent giveaway amounts to less than the cost of a cup of coffee per week. At least its more than the 23 cents for the unemployed and 28 cents to age pensioners. Less than half a cup of coffee per week.

Image From Nicholas Eagar/Newswire: Aussies earning over $18,000 t get a tiny tax cut

Wealthy property investors will get a handout of $176 billion. There is nothing for renters, no increase of investment in affordable housing. So where is the promise of action to increase the stock of affordable housing?

Single and couples will be able to buy a share of a home, providing they can afford to pay 60 percent of the debt. They can buy out the government share over time. A small $800 million over the next four years has been added to the $6.3 billion already committed. Far too little to make a dent on the existing housing affordability crisis. So what about the promise of meaningful action increase? It has been forgotten. There is nothing for struggling renters.

What about the over cost of living then? Not much to see here either. There are a few titbits like a 20 percent discount on student debt, and the inclusion of dental car for kids on Medicare. The Pharmaceutical Benefits Scheme (PBS) does get a modest $25 million over the next five years. The cost of a script will reduce from $31.60 to $25. Just over a cup of coffee for each.

There is a $250 million for the protection of 30 million hectares of bushland, an increase of 8 million hectares. What the money will be used for is not yet known. There are a few more minor environment related giveaways.

Photo from Gaye Gerard/Newswire: Critics say tax cut makes little difference

Dealing with climate change and sustainable development have been ignored, and a new round of $65 billion in handouts will be given to fossil fuel companies.

There is a freeze on increasing the beer tax for two years. A $1,9 billion injection into the Whyalla Steelworks will save the company from collapse, and up to $2 to help aluminium melters to switch to renewable energy by 2036 is merely a taste of what is needed.

Although it is said that the National Disability Insurance Agency (NDIA) gets an extra $175.4 million, this is devoted to providing more jobs in the organisation, and not to disabled people that the National Disability Insurance Scheme (NDIS). They get nothing. In fact, funding for NDIS had been cut. The new funding will concentrate on increasing policing of recipients.

Past promises had been about dealing with the overall continuing cost of living crisis.

Ukraine received some attention. A $17 million commitment went to prolong a war that’s nearly over, and which will contribute nothing to the outcome.

The big-ticket gaps, besides the failure to really take on the cost of living and housing crisis, and climate, is the failure to create a significant shift in in the redistribution of national income downwards. Once again, the big end of town is the winner.