(did we mention "working families"?)
The 2008 Federal Budget has provided the newly elected Labor Government with its first major opportunity to present its economic credentials to the Australian public.
Treasurer Wayne Swan’s task has not been an easy one, despite inheriting an economy which is still quite robust by world standards. Having emerged victorious from an election campaign where the combatants offered voters so many lures, the Federal Government has been very mindful of the need to deliver on its promises, particularly to the part of the electorate it repeatedly refers to as "working families".
But with inflation trending upwards, a tight credit market and weakening business and consumer confidence, Mr Swan has had to balance beneficence with financial rectitude. A "Razor Gang" has been at work to identify cost savings, and some Government benefits and tax breaks will now be means-tested.
The Budget also heralds yet another tax reform review which, although no doubt warranted, may trigger a sense of déjà vu and fatigue amongst those whose job it is to implement tax change and ensure compliance with the new law. There is some unfinished tax business from the previous Coalition Government, and Mr Swan’s clarification of the status of some (but not all) of these tax measures, is welcome.
