Wednesday, May 10, 2006

2006 Budget review

Its fairly obvious I was going to be angry with a lot of the pork and spending that Australians take for granted under our tax system in our social democracy. We live under an oppressive tax system which hooks large sections of society and scattered interest groups onto welfare and makes them addicts.

Funding has always flowed in ever increasing amounts towards pet causes such as "the environment" and "families". So anything short of a massive reversal was always going to be a massive disappointment to me. As our federal and state governments expand, and the tentacles reach ever further into our daily lives, its unlikely to ever see a budget which rewards success and motivates people to earn wealth instead of destroying it.

Here's my take on the budget:


  • The top tax rate was cut from 47% to 45%.
  • The 2nd top tax rate was cut from 42% to 40%.
  • Boosting the 15c income tax threshold from $21,600 to $25,000
  • Boosting the 30c income tax threshold to $75,000
  • Scrap all levies on payouts - lump sums and annual super pensions - but only if the nest egg is accessed when a retiree turns 60.
  • Under the new super plan, the cap on how much super that people can hold will be abolished and replaced with a $50,000 limit on yearly contributions.
  • A person aged less than 35 now can only invest $14,603 a year in superannuation. Between 35 and 49, they can invest $40,560 a year. Both those amounts have been raised to $50,000.

THE BAD (theres plenty of it):
  • Boosting subsidies, now available to every childcare provider.
He said the changes would cost taxpayers $60.2 million over four years and allow 99 per cent of childcare providers to create as many places as they liked.
  • Under changes to the Family Tax Benefit A, which will apply from July 1, families will be eligible for the maximum benefit - $4000 - until annual earnings reach $40,000. Families were previously eligible for the maximum benefit until their combined salary hit $33,361. Under changes introduced in the 2005-06 budget, the threshold was lifted to $37,500.
  • A $2.3 million campaign to advertise the 30 per cent childcare rebate will come into affect from July 1. (Great .. they steal our money, and then they steal some more to advertise and let us know how the bastards are gonna spend it !)
  • Welfare payments to families will be increased under a $2.9billion plan to increase the income threshold at which people receive maximum family payments. (Ahh nothing like giving our money to "families" and punishing the rest of us who don't have a wife and two kids)
  • Increase in funding for medical research with annual spending to nearly double, to $700million a year, by 2009-10. (A total waste of resources. These self-righteous bactually believe that if big fat almighty government wouldn't spend money on medical research, it just wouldn't get done by the free market)
  • The Murray-Darling Basin will receive $500 million in an effort to restore the waterway's health. (this is nothing more than a payout to buy farmer's votes. How the hell do you restore a waterway's "health" anyway ?)
  • The Federal Government will be providing nearly $9.3 billion in funding for schools as part of the 2006/07 Budget. (Thats a lot of money going to inefficient schools)
  • Science and innovation will receive a record $5.97 billion in 2006/07 as part of this year's Budget
  • Funding for the ABC will increase to $530.8 million in 2006/07, $543.5 million the following financial year and $555 million in 2008/09.
  • Senator Kemp says he also welcomes the announcement of additional funding of $4.4 million for the performing arts in Australia.

  • The National Institute of Circus Arts in Melbourne will receive $2.3 million, Sydney’s Belvoir Street Theatre will gain $1.5 million and $600,000 will be provided to the Sydney Dance Company.

  • Roads and rail infrastructure will receive a $2.3billion funds injection, as part of the national plan to improve Australia's freight links and boost export capability.