Kevin Rudd Prime Minister Again

[EgejskaMakedonia]

I understand the Chinese buy our iron ore and refine it in Malaysia because the cost of labour is too high in China!

Why shouldn't the government subsidise our industry to find a way to refine our raw materials here in Australia? It makes perfect sense. If I was a politician, I could sell the shit out of that. It could drive innovation and make our country a nation that promotes intellectual property and industry best practice. Better that than throwing some money at Ford or GM.

I agree, subsidising the motor vehicle industry has proved costly and it is evident that this industry could not survive in Australia. Thousands of jobs are on the line though, and the government needs to step in sometimes.

I don't see how the mining sector requires any kind of subsidy. As you mentioned in a later post, it's not the best word to use. Regardless, these mining companies don't need handouts in order to enhance R&D. They report profits in the billions and I fail to see how a tax is not warranted here. They are profiting off Australian natural resources and it is only right that the rewards are spread throughout the population with a tax in place.

A mining tax won't kill them. They are just greedy bastards is all.

[Phoenix]

I agree, subsidising the motor vehicle industry has proved costly and it is evident that this industry could not survive in Australia. Thousands of jobs are on the line though, and the government needs to step in sometimes.

Unfortunately, the vehicle industry has been the focus of much recent attention and surrounding this there seems to be a large degree of misinformation and in some cases outright ignorance.

Most economic sectors in this country (and elsewhere) get some form of government funding, whether it's agriculture, healthcare, education or industry.
The vehicle industry shouldn't be highlighted as one that gets the lions share of funding, or that those funds are somehow just 'wasted'.

In every auto building country, the governments of those countries provide funding to their auto industries and in nearly every case the co-investment between the manufacturers and the government is much higher than here in Australia.

In Australia, every government dollar given to the auto manufacturing sector has a six fold return to the economy and every one worker that is directly employed by a vehicle manufacturer creates another 8 or more indirect manufacturing and service industry jobs in the economy.

The plight of the domestic auto industry isn't because of throwing good money after bad but the result of poor government policy in our so called "free-trade" agreements and the open nature of our local car market.

Free-trade agreements haven't been the level playing field that many exporters have hoped for in this country.
In the example of the auto industry, the vast number of imported vehicles coming into Australia are currently from Thailand but an Australian made vehicle going into Thailand for sale all of a sudden is restricted by extra taxes placed on it the minute the vehicle exceeds certain engine size specs.

Then there's issues with currency manipulation of some of our trading partners (i.e. China).
In an effort to protect themselves from currency manipulation, Brazil has applied special tariffs to imported vehicles, thereby maintaining a more level playing field for it's domestic vehicle industry.

At the moment anyone can import and flood the Australian vehicle market, we have possibly the most open market in the world and yet our new car market is a relatively small number of 1 million units a year but provides for a variety of hundreds of different car brands and models available to the consumer.

The Australian auto industry faces huge challenges, many not of it's own making.

[George S.]

The subsidising it seems is just money being thrown around hoping to solve a problem & it seems it aint fixing anything.THe companies are still closing down.What do they want super profits?Are these coys retainng jobs in reality.

[Bill77]

Best Budget Ever lol

http://m.youtube.com/watch?v=LU1bheQT5kE

[Risto the Great]

haha
Actually, I have only a few peeves with the budget. What they are proposing with higher education is absolutely spasticated. It will create an investment hole in the economy for a generation. Lowering the company tax rate and effectively increasing the highest tax rate is also ridiculous. Further reason to syphon money out of Australia.

Other than that, the debt has to be reduced! Labor were utterly retarded, so the task sits with the present government.

[Vangelovski]

haha
Actually, I have only a few peeves with the budget. What they are proposing with higher education is absolutely spasticated. It will create an investment hole in the economy for a generation.

Do you mean the deregulation of fees?

[Risto the Great]

Do you mean the deregulation of fees?

Absolutely.

[Bill77]

haha
Actually, I have only a few peeves with the budget. What they are proposing with higher education is absolutely spasticated. It will create an investment hole in the economy for a generation. Lowering the company tax rate and effectively increasing the highest tax rate is also ridiculous. Further reason to syphon money out of Australia.

And reviewing disability pension sending them back to work
And this Medicare co-payment
And increase pension age to 70

Have we become Greece all of a sudden?

[Phoenix]

And reviewing disability pension sending them back to work
And this Medicare co-payment
And increase pension age to 70

Have we become Greece all of a sudden?

I was listening to ABC Radio on budget eve when they interviewed some financial guru (name escapes me) but he suggested the $7 medicare co-payment would cost more in administration overheads than what the government would end up with in their coffers...

All this deficit talk is a load of crap according to this bloke, he reckons the Libs are just building up an early 'war chest' with budget cuts in their first 2 budgets of their 1st term so that they have money to splash around in tax cuts and other pork barrelling measures before the next election...

[George S.]

You guys didn't mention the reality of crunch time.Labor has got us into a huge debt.They borrowed a lot of money.Which at the moment we are just paying interes of over 1 billion dollars in interest.Guys if anyone mentions we should pay a carbon tax you are all wrong why the carbon gas in the earth is rare & makes about 1 to 2 % of all the gases.THere is no danger of the earth warming as the earth is actually cooling & we are heading into a mini iceage soon.Carbon gas IS NOT A POLLUTANT & MAN MADE accounts for a small amount.What are we taxing for what are we going to fix nothing,Its ALL A LIE.
Imagine what labor wants to do is create a slush fund via the un so they can squander all the taxpayers money.This would be done with the carbon credits labor hoped to achieve.It was all a lie to redistribute people's wealth from the rich nations to the poor nations.IF PEOPLE KNEW WHAT LABOR WAS REALLY upto THEY WOULD WANT TO THROTTLE labor as all it wants is to DEStroy the Australian way of life & send us down the gurgler with debts & to the levels of a third world country.

[Big Bad Sven]

haha
Actually, I have only a few peeves with the budget. What they are proposing with higher education is absolutely spasticated. It will create an investment hole in the economy for a generation.

A lot of australians wont be able to pay 75k for a useless business degree that chances are wont get them a job, but thats ok as the international students can still afford to come here and study.

University is a scam anyway, it stopped being a place of education and learning and its now just a business that only cares about money.

Whats the bet when uni's pump up their prices that the teaching will be sub-standard e.g. tutors will be just international students who are doing their honors or have completed their undergrad and moved on doing their masters. But uni's like to market that you are getting taught by people with industry experience LOLOLOL

The way i see it is that australia is turning into america. Good bye medicare, good bye affordable unj, cut back on centrelink etc

Got to love capitalism

[EgejskaMakedonia]

A lot of australians wont be able to pay 75k for a useless business degree that chances are wont get them a job, but thats ok as the international students can still afford to come here and study.

Agreed. People don't like to delve into this issue due to its sensitivity and the fear of being labelled a racist, but our universities (and even schools) are selling-out the domestic students to an extent. They rely heavily on the full-fee students in order to develop and maintain their business model, which is ultimately the fault of the government. It's rather frightening when you look at the composition of some schools/unis and the majority are international students. I have nothing against them, but I think domestic students should be given every opportunity before spots are given away to rich foreigners.

These internationals (if they end up staying in Australia) will begin to take a lot of senior positions in the country. I believe that people should be judged on merit, but not at the expense of a domestic student missing out. Conversely, the mass-migration of South-Eastern Europeans during the mid-late 20th century saw the majority working in unskilled jobs, which paid bugger all and had hazards left, right and centre. The underprivileged and refugees should be given every possible opportunity to advance their lives in Australia, but rich immigrants should be subject to more restrictions. Some may argue that they are essential to the growth of the economy and productivity, but we have seen the Australian way of life deteriorate over-time. I don't think the trade-off is worth it in the long-run.

The Coalition budget will only exasperate the issues highlighted above. Universities will eventually be given discretion to charge as they please and even more young people will be dissuaded from obtaining a tertiary degree. Typical Liberal policy, look after the rich and stuff the rest.

[George S.]

you guys know that in Nz the gst is 12% 15.5%? why didn't they raise that?Also a gst on food why didn't they proposed that.By singling out the particular portfolios they instantly became notorious,No wonder they are being attacked people feel genuine hate as they are most affected.Peeved is really an understatement.Where are people going to make ends meet.?Allready their budgets are stretched.Abbott should have better thought this one out.

[Vangelovski]

BBS and EM,

You make some good points re higher education, but the question at the end of the day is money and where it comes from.

The Federal Government is currently $350 billion in debt (according to the debt clock: http://www.australiandebtclock.com.au/). Even more concerning is the total Australian debt - this includes the federal government, state government and private debt, which is a total of $5 trillion. And just look at how that debt has increased over the past 24 years:

http://www.australiandebtclock.com.au/history

I'm just wondering how you propose that higher education (along with everything else we've become accustomed to) is paid for without actually turning into Greece (or worse yet, Macedonia) and not having anything.

[Phoenix]

BBS and EM,

You make some good points re higher education, but the question at the end of the day is money and where it comes from.

The Federal Government is currently $350 billion in debt (according to the debt clock: http://www.australiandebtclock.com.au/). Even more concerning is the total Australian debt - this includes the federal government, state government and private debt, which is a total of $5 trillion. And just look at how that debt has increased over the past 24 years:

http://www.australiandebtclock.com.au/history

I'm just wondering how you propose that higher education (along with everything else we've become accustomed to) is paid for without actually turning into Greece (or worse yet, Macedonia) and not having anything.

I think the real problem of debt in Australia is with household/personal debt...largely driven by the ridiculous price of housing in this country and the mortgages that householders have, this in turn exposes the banks to high risk, regardless of the perceived strength of our banking system.

Unfortunately, the federal budget doesn't address this fundamental flaw in our so called debt crisis...

Paying more for education, health and fuel doesn't do jack shit to eliminating personal debt, it will only increase that debt.