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Jury out of ALP "savings"



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j.forrest.mp@aph.gov.au www.jforrest.com 60 Campbell Street, Swan Hill VIC 3585 ph 03 5032 4510 fax 03 5032 9407

Tuesday, 23 October 2012

JURY OUT ON ALP “SAVINGS”

The Nationals Federal Member for Mallee John Forrest said Mid Year Economic and Fiscal Outlook budget changes this week were essential due to the poor fiscal management of the ALP.

“Much the same budgetary challenges will confront us if we are in government next year once we discover the full extent of the government’s indebtedness,” Mr Forrest said.

“The changes announced this week need to be fair and not to penalize those who create jobs and thus shift wealth through the economy.

“This is not a principal well understood by ALP which thinks it is the government’s job to distribute wealth.

“In essence, the jury is still out on the Treasurer’s announcement and it will take some time to unravel the detail and examine the consequences.”

Mr Forrest said he was concerned Monday’s MYEFO changes would make life harder for families already suffering cost of living pressures.

There was also some sleight of hand in the budget in regard expenditure which gave a false impression of a small surplus when in fact expenditures had been brought forward or deferred, including the carbon tax off-sets pre July 1.

The business pay-as-you-go monthly tax instalments instead of quarterly, will require additional administrative burden for companies with over $20 million in turnover.

“That will include some local businesses,” Mr Forrest said.

“In addition, the government appears to be deferring some $324 million in grant payments this year and it is possible some projects in Mallee Electorate could be affected.”

People with private health insurance should be encouraged and not be penalised by a reduced rebate.

The government was raiding unclaimed superannuation and there were additional costs for self managed superannuants.

Treasurer Swan said on 22 October 2012 he was “also saying there will be other structural saves we will have to take as well’.

“There is a planned ATO crackdown on small businesses at a time when many are struggling,” Mr Forrest said.

“Already, more than 5800 small businesses have been targeted by ATO and they were forced into paying default tax because they couldn’t afford to fight or correct ATO assertions.

“There are cuts or deferments in school programs including trade training centres, and I hope this does not have too big an impact on schools in Mallee Electorate ,” Mr Forrest said.

Mr Forrest can be contacted on 0428500186