Budget 2008

Well after 12 years, take note please Mr O’Brien, Swan has delivered a not-too bad a budget.  There are areas, especially those relating to climate change and water, that are disappointing and off-the-mark in terms of funding needed and the areas best served by the proposed funding.

In other areas, I’m pleasantly surprised by the Government’s announcement for additional funding for Australia’s struggling higher education system.  This is especially the case for an immediately available infrastructure fund of $500m.  However, I have not yet come across the predicted funds for student organisations and student-oriented services decimated by the Coalitions’ ideological voluntary student unionism (which by the way, membership to a student organisation was always voluntary) legislation.

Unfortunately the means test for solar rebates is absolutely ridiculous and counter-productive to households and small-to-medium enterprises (SMEs) taking up various solar energy options.  This is something that everyone should have access to, to ensure that real action is being taken on climate change.  By ensuring that all households are able to access these rebates, it will enable those more capable of installing more expensive, feed-in solar systems will be encouraged to and over time will help off-set those less capable of installing such systems.  Likewise we want to ensure that land-lords and households are encouraged to at least install solar hot water systems, which will help reduce greenhouse gas emissions; and reliance on energy supplied by the ‘grid’.

One particular measure announced tonight that I am in absolute favour of is the increase in the income threshold to avoid being penalised for insisting on only supporting the public system (Medicare) and not propping up the private system.  As a side note, prior to the budget a number of private funds actually lamented that they would be forced to increase premiums, as if this was something new and didn’t happen with all too familiar regularity.

Disappointment still remains about the fact Rudd chose to continue with the tax cuts, to appease the masses as you could imagine Howard suggesting in a Cabinet meeting of the former Coalition Government, when these would be much better spent on education, health care and rail freight & public transport infrastructure or additional funding for renewable energy research.

Overall I have to say that I am feeling positive about Budget 2008 but cautious too.  And it was nice to not have to hear Costello banging on in his droning voice, although Swan’s isn’t that much better.

Budget 2008 = 5.5 out of 10