Budget Predictions and Wishlist

No doubt you will have read the headlines. In October Frynerberg is set to deliver the mother of all budget blowouts estimating a 200bn deficit.

You will also likely have read states will be delivering their own economic stimulus.

So I just wanted to start a thread to track predictions and news as it comes available.

From what I have read bringing forward the new tax scales appears a certainty.

Homebuilder will be extended.

Childcare subsidies to continue.

These all seem more than reasonable to me and whilst I have been highly critical of homebuilder if it continues so people can actually use it then it’s a great incentive.

My wishlist has always been NBN to the premises (won’t happen) and fast rail connecting major cities and regional.

 

That's pretty much all I can think of too. That would be such a great way to invest in the future.

I guess anything else we can do to continue lessening our dependence on China would be good too.

 

Bringing forward the income tax cuts.

Big infrastructure projects, or at least something substantial for the construction sector.

Broadening of the GST base.

 

I would like to see a separate rate of tax for dividends and capital gain, and ditch franking credits and CGT. Keep it simple.

 

I have no hope on fast train. How long does it take to build dual carriage lanes from Sydney to regional cities for road transport so far? Look at Syd-Brisbane on F1 Pacific Hwy upgrade

I would love the Govt put in the real investments to do our own recycling rather than landfill and easier and faster to deliver in shorter time frame

 

Whatever it is it I've got a feeling that it will be an opportunity squandered.

The ScoMo Govt is blaming coronavirus for the poor economic situation and while coronavirus worsened the situation, the reality is somewhat different. Tax cuts for high earners and low interest rates is more of the same tired policies that headed Australia down the path of recession just before coronavirus struck.

 

I hope the govt abolishes CGT for 3 years. And also makes dividends completely tax free for 3 years as well.

These will drive investment and the economy will surge as spending will explode.

 

@datto for PM.

What will be your other initiatives for the people west of the Red Rooster Line?

Sydney's Demographics are Defined By a Clear Fast-Food Divide | Man of Many

 

Re Recycling happening now was announced a few months back.

Department of Agriculture, Water and the Environment

 

Dumbest line i have ever seen.

 

Budget should be about short term job growth. That should be the starting agenda. I don't think the budget should focus too much on 'pie in the sky' type programs. It should be realistic and short term.

Not sure the current time is to set in motion meaningful big scale reform just yet (like GST broadening, etc). While great for the long term, it can probably wait for another 12 months once were actually on the other side of it all and people are employed again to a more acceptable societal level. The election is a time for a national post recession growth/productivity agenda.

I think Treasury should be modelling out some form of labour allowance to go with the capital allowance that they're almost certain to include.

A program that works on short term 12-18 month program that targets additional payrolls to existing businesses. E.g. if an employer paid $500k in wages last year, and pays $700k in wages this year, the additional $200k has a ~30-50% tax credit to it. The business investment allowance will be in place to target additional capital investment that gets jobs, but something more direct that targets labour intensive industries (instead of capital), like services/etc could be a good idea.

So far the Covid measures have worked on existing payrolls and been focussed on income support (the 100k cash flow boost & JobKeeper). This should be recalibrated to 'incentives' to hire.

Why?
- Unemployment is high, jobs is the agenda of the budget
- It retargets current support measures from potential companies that may never recover to growth businesses

It'll cost a lot, but could create 100,000's of jobs very quickly. A lot of it will be wasted, but it aligns with the 'create jobs right now' strategy. I sense there's a whole lot of businesses out there that would like to hire people, but the current cloud of uncertainty makes it a difficult to do. Get them to do it is the idea, even if its footed by the taxpayer for a while.

 

No denying we need quick sugar hits to kickstart the economy but I would be livid if they don’t use this opportunity to plan and start delivering projects that will provide long term benefits to this country.

If your going to blow out a 200bn deficit that we will be paying for the rest of our lives then atleast give me fast internet or the ability to catch a 2hr train to SYDNEY.

 

Just curious... Why is fast internet so important?

I have NBN (not to the building) and it's fast enough to have multiple devices watching HD videos at the same time. Why do you need it to be faster than that?

 

It’s a very valid question so I’ll do my best to answer it.

Firstly the NBN is not available everywhere. Secondly NBN where available is different based upon its end point. I won’t go into specifics to much but let’s say the speed can vary greatly depending on how it’s installed in your area.
But even then, your correct that for most people even with a poorer NBN you can still do most things on the internet.

However and this is the big kicker is that you only know what is possible because that’s what your limited by. You used a perfect example of streaming. You can only stream services like Netflix because of the quality of your internet. You can now only steam Netflix in HD because your internet got better and you will only be able to stream 8k when it gets better again.

But you would have never dreamt of Netflix growing up and you also can’t dream of the realms of possibility that sits behind true fast internet.

 

This is the point I've been trying to make for years. When NBN was conceived, the internet was a computer and maybe a laptop in every home. Now it's one smart phone per person, multiple laptops and computers, tablets, multiple Apple TV's and Chromecasts, internet enabled web cams, security systems, hell, I've even got a GPS on my cat.

Another 10 years from now? 8k VR goggles on every head? And when internet enabled chips cost $0.10c a piece, we'll have almost everything in our homes connected.

 

Makes sense. I do love 4K!

But how important is it to the economy, when compared to improved travel infrastructure etc?

 

Bring forward the income tax cuts.

Waive the business income tax deferrals (wishful thinking).

 

I thought that was already confirmed? Or are they still thinking about it?

 

I thought that was a wood duck.