Unfair Morrison tax plan will cost all of us   :(
5 July 2019
ACTU

     Unfair Morrison tax plan will cost all of us   :(

Scott Morrison’s plan to put cleaners, farm workers and shop assistants in the same tax bracket as senior executives will see him slash government spending on infrastructure, aged care, pensions, hospitals, schools, scientific research, industry development, skills training and universities to make up for the lost revenue.

The peak body for working people has slammed the cuts, demanding Mr Morrison explain which services he will cut to pay for stage three of his tax plan.

The Morrison Government refused to pass modest tax cuts for working people on low and middle incomes without also attaching much larger handouts for those earning more than half a million dollars a year.

The third stage of the tax plan mainly benefits very high income earners.

The result is a flat tax for people paid between $45,000 and $200,000 a year – a regressive move that abolishes the progressive nature of Australia’s taxation system.

Mr Morrison’s assertion that the budget will not need to be cut relies on optimistic wage growth targets that the Coalition has repeatedly failed to reach in the past.

It will require substantial cuts to government services that working people depend on, will see people who do public service work funded by the commonwealth sacked, and will make our country less fair.

The cuts come at a time of sustained record low wages growth, meaning working people will have less capacity to pay the out-of-pocket costs incurred by looming federal government cuts.

Quotes attributable to ACTU Secretary Sally McManus:

“It is telling of this government’s priorities that they refused to pass a tax cut for people on low and middle incomes without also attaching much larger cuts for people on half a million dollars a year.

“The third stage of the tax cuts fundamentally changes the progressive nature of our tax system. It puts people on barely more than the minimum wage in the same tax bracket as people who are paid five times as much.

“Why should the office cleaner and the CEO be in the same tax bracket?

“Scott Morrison has set a time bomb ticking. They have no plan to reach their wage growth targets, and when they fail to meet those targets the result will be cuts to services and job losses in schools, hospitals, universities, aged care and the community sector.

“Scott Morrison needs to explain which services that working people rely on he is going to cut to pay for the third stage of these cuts. Will we have fewer nurses? Fewer hospital beds? Fewer teachers, or fewer schools? Will we have longer wait times? Lower Medicare rebates?

“Tax cuts are not a substitute for real wage increases. Scott Morrison and his Government’s plan will deliberately keep wages low.

“They’ve cut penalty rates. They’ve capped public service wages to produce real wage cuts. And they’ve admitted it’s a ‘design feature’ of their economic plan.                                                                     

“I invite Scott Morrison to take the sensible actions on wages that we have proposed – reverse penalty rate cuts, remove public service caps and support a living wage.”

Anyone know what the rich will lose out from this?  Societal change?

Yes our great economic managers - once again giving away money that they don't have.

Thay fail on economics 101 every one of them every time.

Proof of the concept that if you pay monkeys more money they buy more peanuts.

So what are people spending their tax cuts on?  Making the economy great?  Paying off debt?  Saving for the worsening economic climate?

stunspore wrote on Jul 7^th, 2019 at 9:41am:

So what are people spending their tax cuts on?  Making the economy great?  Paying off debt?  Saving for the worsening economic climate?

Mine is going to the Kaymens.

Let's be up front about the politics of all this ...

Labor is desperate for the Coalition to fail to produce a budget surplus (hence the "plan" to get tax cuts and infrastructure spending brought forward.)

The Coalition is desperate to produce a budget surplus so it can tick off the promise they made.

Sure, the economics of stimulus should outweigh the narrow focus of a surplus ... and those on Insiders made the claim that "the people " would forgive the Coalition if they failed to produce the promised surplus.

To which I say: BULL-DUST!!!

The Coalition would be pilloried up hill and down dale if they failed to bring in a budget surplus.

That's the politics of the situation.

Now, after the Coalition ticks the box of the promised surplus, I reckon they will then borrow more to bring forward more economic stimulus.

The reality is: they are determined to bring in that promised budget surplus. If they fail, Labor will be screaming from the rooftops that the Coalition were liars.

As for the longer-term tax reform plan?

People whinge that there is too much short-term government ... then when the government comes up with a longer-term reform package ... people whinge about it!

Pfft.

We need longer-term planning in this country.

Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

Let's be up front about the politics of all this ... Labor is desperate for the Coalition to fail to produce a budget surplus (hence the "plan" to get tax cuts and infrastructure spending brought forward.)

Labor is not motivated by the desire not to see a surplus. Labor is motivated by the real need to avoid a possible recession. By refusing Labor's amendments to stimulate the economy, the Coalition are the ones who would wear any economic downturn.

You crap on about Labor's plans, but the Coalition have no plans at all! What would the Coalition do to rescue the economy? Austerity? That's a guaranteed path to more pain. Negative economy plus negative government spending equals more negative economy. Government austerity during an economic downturn does not work. Tax cuts for the rich? That won't work either. They're not going to spend them.


Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

The Coalition is desperate to produce a budget surplus so it can tick off the promise they made. Sure, the economics of stimulus should out-way the narrow focus of a surplus ... and those on Insiders made the claim that "the people " would forgive the Coalition if they failed to produce the promised surplus. To which I say: BULL-DUST!!! The Coalition would be pilloried up hill and down dale if they failed to bring in a budget surplus. That's the politics of the situation.

I disagree. Whether the Federal Budget is positive or negative by some numbers after the decimal point is of little consequence. The Coalition promised a Budget surplus "in the first term". This didn't happen. They were re-elected.

Allowing the economy to slide into recession is much worse for any government. Governments that are in office during a recession are usually voted out at the next election. If the Coalition managed to deliver a surplus, but ended up crashing the economy into recession, it is not that surplus that will be top of mind for voters at the next election.

This is why Labor tried to bring forward the second part of the tax cuts. Leaving them as they are is too late to stimulate an economy that needs real help over the next 12 months.

Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

Now, after the Coalition ticks the box of the promised surplus, I reckon they will then borrow more to bring forward more economic stimulus.

It would be too late. The time to act is NOW. What happens over the next 12 months is crucial.

If the Coalition hold off until they've got that surplus, the economy could already be in recession by the time it's delivered. It is certainly in bad shape right now.


Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

The reality is: they are determined to bring in that promised budget surplus. If they fail, Labor will be screaming from the rooftops that the Coalition were liars.

But the Coalition are liars. Whether a surplus is delivered or not is just one more lie on a very long list of mendacity.


Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

As for the longer-term tax reform plan? People whinge that there is too much short-term government ... then when the government comes up with a longer-term reform package ... people whinge about it! Pfft. We need longer-term planning in this country.

The Coalition's irresponsible tax policy is handing out more and more money for the rich, while at the same time very generous tax concessions and other wealthfare remain in place. Capital gains tax concessions, negative gearing, dividend imputation, private health insurance rebate - these and many other tax breaks and spending measures would all need to be scrapped to pay for these tax cuts. The Coalition have been very quiet about how they plan to pay for these cuts, and for good reason.

And in the meantime, the government is actively INCREASING taxes at the low end of the tax scale. Lowering the HECS repayment threshold, not touching the tax free threshold, not lowering the 19 cent threshold: it is abundantly clear that the government is actively shifting the tax burden from those who can afford it to those who cannot. Someone only 10% above the minimum wage would have a HIGHER marginal tax rate than someone on four times as much income who doesn't have such a "debt". This is just one of many examples of the highly regressive nature of our taxation and payment system that is going to need strong remedies after the Coalition have finished doing their smash-and-grab damage to the taxation system.

Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

Now, after the Coalition ticks the box of the promised surplus, I reckon they will then borrow more to bring forward more economic stimulus.

yeah ... shut the gate After THE horse has bolted.
:D :D

Ooh.... I don't think Labor Luvvies should be talking about increasing taxes.  ;D

Your mob just lost the unlosable election over increasing taxes.  ;)

Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

Let's be up front about the politics of all this ... Labor is desperate for the Coalition to fail to produce a budget surplus (hence the "plan" to get tax cuts and infrastructure spending brought forward.) The Coalition is desperate to produce a budget surplus so it can tick off the promise they made. Sure, the economics of stimulus should out-way the narrow focus of a surplus ... and those on Insiders made the claim that "the people " would forgive the Coalition if they failed to produce the promised surplus. To which I say: BULL-DUST!!! The Coalition would be pilloried up hill and down dale if they failed to bring in a budget surplus. That's the politics of the situation. Now, after the Coalition ticks the box of the promised surplus, I reckon they will then borrow more to bring forward more economic stimulus. The reality is: they are determined to bring in that promised budget surplus. If they fail, Labor will be screaming from the rooftops that the Coalition were liars. As for the longer-term tax reform plan? People whinge that there is too much short-term government ... then when the government comes up with a longer-term reform package ... people whinge about it! Pfft. We need longer-term planning in this country.

You could not be further from the point.

There was never any possibility of a budget surplus and the budget figures support that position - the claims of a budget surplus was nothing more than an election year lie.

Growth needs to be double what is is with no additional spending for a surplus to be barely possible and they have now locked in billions in short medium and long term spending. The growth expectation has been downgraded and the RBA have cut interest rates meaning that the budget bottom line is in trouble and not the opposite.

Labor have no impact on the Liberals timing agenda at all, that claim is just silly. There was never any chance of a surplus this financial year, none at all even the budget that claimed a future surplus contained the proof that it will not happen.

The announced surplus is the reason SloMo's staff are carrying fire extinguishers - they are worried about his pants catching fire.

Captain Nemo wrote on Jul 7^th, 2019 at 11:48am:

Ooh.... I don't think Labor Luvvies should be talking about increasing taxes.  ;D Your mob just lost the unlosable election over increasing taxes.  ;)

Well lies about non existent tax increases anyway.

Captain Nemo wrote on Jul 7^th, 2019 at 10:38am:

Let's be up front about the politics of all this ... Labor is desperate for the Coalition to fail to produce a budget surplus (hence the "plan" to get tax cuts and infrastructure spending brought forward.) The Coalition is desperate to produce a budget surplus so it can tick off the promise they made. Sure, the economics of stimulus should out-way the narrow focus of a surplus ... and those on Insiders made the claim that "the people " would forgive the Coalition if they failed to produce the promised surplus. To which I say: BULL-DUST!!! The Coalition would be pilloried up hill and down dale if they failed to bring in a budget surplus. That's the politics of the situation. Now, after the Coalition ticks the box of the promised surplus, I reckon they will then borrow more to bring forward more economic stimulus. The reality is: they are determined to bring in that promised budget surplus. If they fail, Labor will be screaming from the rooftops that the Coalition were liars. As for the longer-term tax reform plan? People whinge that there is too much short-term government ... then when the government comes up with a longer-term reform package ... people whinge about it! Pfft. We need longer-term planning in this country.

Quote:

People whinge that there is too much short-term government ... then when the government comes up with a longer-term reform package ... people whinge about it!

Giving a shite load of money you don't have to your mates isn't even vaguely related to any type of reform. In fact is is as shorter term thinking as is possible.

They have given away billions to people who don't need it and they don't even know how they will pay for it. Dumb as dog doo doo.

I thought the "top end of town" only benefited after 2022/23 FY. Seeing as that is after the next federal election perhaps Labor should start planning now.

Dnarever wrote on Jul 7^th, 2019 at 11:52am:

Well lies about non existent tax increases anyway.

Oh I thought it was supposedly "lies" about NEW taxes. If people end up paying more tax, for whatever reason, it is a tax increase. It increases the amount of tax paid on the same income.

Like the proposed CGT discount being halved on sale of rental properties.

lee wrote on Jul 7^th, 2019 at 12:13pm:

I thought the "top end of town" only benefited after 2022/23 FY. Seeing as that is after the next federal election perhaps Labor should start planning now.

Yes, it seems that it is going to take the full 9 years in the wilderness before Labor wakes up to itself!  ;D

lee wrote on Jul 7^th, 2019 at 12:17pm:

Dnarever wrote on Jul 7th, 2019 at 11:52am: Well lies about non existent tax increases anyway. Oh I thought it was supposedly "lies" about NEW taxes. If people end up paying more tax, for whatever reason, it is a tax increase. It increases the amount of tax paid on the same income. Like the proposed CGT discount being halved on sale of rental properties.

A tax increase for People who pay zero tax ? Ho Ho Ho.

lee wrote on Jul 7^th, 2019 at 12:13pm:

I thought the "top end of town" only benefited after 2022/23 FY. Seeing as that is after the next federal election perhaps Labor should start planning now.

So Morrison is building future debt and that is all ok.

Dnarever wrote on Jul 7^th, 2019 at 8:14pm:

So Morrison is building future debt and that is all ok.

You do like to put words in people's mouths. ;) ;) ;) ;)

All labor has to do is win the next election. Or are you conceding already? ;)

Dnarever wrote on Jul 7^th, 2019 at 8:12pm:

A tax increase for People who pay zero tax ? Ho Ho Ho.

Of course I presume you have evidence that all people don't pay tax. Or perhaps you have proof that all who have rental properties don't pay tax. Or perhaps it is those people who inherit houses and don't sell within the required time frame who don't pay tax?

Please give us your learned opinion; backed up by evidence of course. ;)

lee wrote on Jul 7^th, 2019 at 8:21pm:

Dnarever wrote on Jul 7th, 2019 at 8:14pm: So Morrison is building future debt and that is all ok. You do like to put words in people's mouths. ;) ;) ;) ;) All labor has to do is win the next election. Or are you conceding already? ;)

So you claim it isn't real just because they could lose the next election ?

Dnarever wrote on Jul 7^th, 2019 at 8:26pm:

So you claim it isn't real just because they could lose the next election ?

jumping to conclusions again. ;D ;D ;D ;D ;D ;D

lee wrote on Jul 7^th, 2019 at 8:27pm:

Dnarever wrote on Jul 7th, 2019 at 8:26pm: So you claim it isn't real just because they could lose the next election ? jumping to conclusions again. ;D ;D ;D ;D ;D ;D

Yes I know you never say what it seems, in fact it seems that you never actually say anything.

Silly me keep forgetting.

lee wrote on Jul 7^th, 2019 at 8:21pm:

Dnarever wrote on Jul 7th, 2019 at 8:14pm: So Morrison is building future debt and that is all ok. You do like to put words in people's mouths. ;) ;) ;) ;) All labor has to do is win the next election. Or are you conceding already? ;)

Jumping to conclusions are you?

;) ;) ;) ;) ;) ;) ;) ;) ;) ;) ;) ;) ;) ;) ;)

Dnarever wrote on Jul 7^th, 2019 at 8:32pm:

Yes I know you never say what it seems, in fact it seems that you never actually say anything.

Poor petal. So completely confused again. ;D ;D


Dnarever wrote on Jul 7^th, 2019 at 8:32pm:

Silly me keep forgetting.

You do seem to be silly alright. making claims that aren't backed up by anything. ;)

Aussie wrote on Jul 7^th, 2019 at 8:33pm:

Jumping to conclusions are you?

No petal. You do understand the difference between a statement and a question? ;)

$158 billion in tax cuts have to be paid for somehow....What services will the Government cut to afford this tax cut and how has trickle down economics worked in the past....The Government needs to be upfront with taxpayers and stop hiding from scrutiny!!!

:-? :-? :-?

Dnarever wrote on Jul 7^th, 2019 at 8:32pm:

lee wrote on Jul 7th, 2019 at 8:27pm: jumping to conclusions again. Yes I know you never say what it seems, in fact it seems that you never actually say anything.

Nailed it.

Gosh the Lefties STILL seem to be fantasizing what it would be like now if Labor had gotten in and introduced their planned enormous increases in taxation.

“Scott Morrison needs to explain which services that working people rely on he is going to cut to pay for the third stage of these cuts. Will we have fewer nurses? Fewer hospital beds? Fewer teachers, or fewer schools? Will we have longer wait times? Lower Medicare rebates?“   :(

The reclusive inarticulate union propaganda parrot BlackDay is trying to sound intelligent but is really just squawking GetUp! propaganda.

Labor's planned huge increases in tax would have hit Australians very hard.

All Australians should give thanks to GOD ABOVE that Shorty did not get in.

Now Albo is trying to wriggle out from under the silly lying rubbish Shorty took to the election and which got him dumped.

Now side stepping the GetUp! propaganda and looking at the TRUTH.

One shudders to think of the devastating effect on Australians that Labor's planned huge tax increases would have caused.



Biggest Tax Shake-Up in a Decade Will Benefit 10 Million Australians
By Jason Scott July 4, 2019, 9:45 AM GMT+10 Updated on July 4, 2019, 7:57 PM GMT+10

Australian Prime Minister Scott Morrison secured the most sweeping changes to the nation’s tax system in more than a decade, delivering a major legislative victory for his newly elected government and injecting stimulus into the slowing economy.

Parliament on Thursday passed legislation that will bring A$158 billion ($111 billion) of income tax relief to more than 10 million workers and fulfill a pledge that was the cornerstone of Morrison’s bid for re-election in the May 18 ballot.

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ipW5h5oAmPrk/v0/800x-1.jpg
Scott Morrison on July 4.Photographer: Mark Graham/Bloomberg

“Low- and middle-income earners will keep more of what they earn and have more money in their pockets,” Morrison said in a statement after the legislation was passed. “This will ultimately boost household consumption, which will be good for the overall economy.”


Conservative Hero Faces Reality of Australia’s Faltering Economy

The cuts will be phased in and by 2024-25, new streamlined brackets will ensure 94% of Australians pay 30% income tax or less. The package includes immediate rebates of as much as A$1,080 for low- and middle-income earners, a much-needed sugar hit for the faltering economy that will be welcomed by the central bank.


Beyond the tax cuts and previously announced infrastructure spending, the policy agenda for the third-term government looks thin, other than tackling red tape and a review industrial relations laws to crack down on union corruption. Reserve Bank of Australia Governor Philip Lowe is urging the government to consider stronger action including increased infrastructure investment and structural reforms.

“There are options other than monetary easing for putting us on a better path,” Lowe said on Tuesday after the central bank cut interest rates to a record-low 1%. “We will achieve better outcomes for society as a whole if the various arms of public policy are all pointing in the same direction.”

https://assets.bwbx.io/images/users/iqjWHBFdfxIU/ist07AVAD6yk/v0/800x-1.jpg
Mathias Cormann in the Senate on July 4, 2019.Photographer: Mark Graham/Bloomberg

Lowe’s sense of urgency has been stoked by a litany of data that shows Australia is on track to record its weakest fiscal year since the last recession in 1991, dragged down by record household debt, moribund wages and two years of tumbling housing prices.

The Labor opposition is calling for the government to speed up the cuts instead of waiting until 2022-23, while there are concerns a loss in tax revenue may result in less spending on public services, especially if economic conditions further deteriorate.

The legislation ensures the top income tax rate of 45% kicks in at A$200,000 instead of the current A$180,000, and removes the 32.5% rate. By 2024-25, there will be three brackets:

https://i.postimg.cc/6QMVgHNt/tax-Capture.png

The Australian Council of Social Service, a group that lobbies for poverty reduction, welcomed the immediate rebate, which will see those earning between A$48,000 and A$90,000 getting A$1,080 of relief.

Still, in a statement earlier this week, it labeled the long-term tax cuts as “too expensive, too risky, too unfair, and too late.”

https://www.bloomberg.com/news/articles/2019-07-03/morrison-eyes-early-win-with-tax-cuts-poised-to-boost-economy

juliar wrote on Jul 9^th, 2019 at 10:43am:

The reclusive inarticulate union propaganda parrot BlackDay is trying to sound intelligent but is really just squawking GetUp! propaganda. Labor's planned huge increases in tax would have hit Australians very hard. All Australians should give thanks to GOD ABOVE that Shorty did not get in. Now Albo is trying to wriggle out from under the silly lying rubbish Shorty took to the election and which got him dumped.

Quote:

The reclusive inarticulate union propaganda parrot BlackDay is trying to sound intelligent but is really just squawking GetUp! propaganda.

The good news is that if you are not trying to sound intelligent you are succeeding.

fail

Quote:

NAB warns tax cuts won't deliver much economic boost National Australia Bank modelling has cast doubt on the belief the tax refunds that will soon start flowing into taxpayers' bank accounts will stimulate the economy in a meaningful way. The Government's tax cuts passed through Parliament last week, with stage one soon to be seen in bank accounts as people lodge their tax returns. On past behaviour, UBS economists estimate that half the returns will be lodged by the end of September, another quarter by the end of this year and the remaining quarter over the first half of 2020. Treasurer Josh Frydenberg is hoping taxpayers will pass much of the cash they receive straight into the tills of their local stores. "I'm very confident this money will be used to ensure greater economic activity. It will be used at the local shop. It will be supporting local employers and local businesses," he said. "There are a number of things that are happening together with these tax cuts that will continue to see strong economic activity across the Australian economy." But NAB's economists, using similar modelling to Treasury and the Reserve Bank, predict that the $7.5 billion in tax offsets is likely to have "only a marginal effect on the economy". NAB's chief economist Alan Oster said the amount of cash being splashed was small in a roughly $2 trillion economy. "So it's about 0.3 per cent of the economy, in terms of the cash," he told The Business.     "When we run our macro[economic] models we get very small impacts there, because half the money gets spent, half gets saved." Economists at UBS expect that retailer sales could be about 1.1 percentage points higher than they would be otherwise over the next year. "Based on the 08/09 cash handouts, we assume 50 per cent of these tax cuts will be spent on retail (with likely another 20 per cent on other non-retail consumption)," UBS noted. "Following cash handouts in 08/09, clothing, department stores, and eating out showed the largest improvement. A similar pattern could be expected with 'windfall' money spent on discretionary consumption." In a recent analysis, ANZ's economic team suggested that retail may not see as much of the cash as it did back in 2008/09.

https://www.abc.net.au/news/2019-07-10/tax-cuts-wont-deliver-much-economic-boost-warns-nab/11295228

John Smith wrote on Jul 10^th, 2019 at 5:07pm:

Quote: NAB warns tax cuts won't deliver much economic boost National Australia Bank modelling has cast doubt on the belief the tax refunds that will soon start flowing into taxpayers' bank accounts will stimulate the economy in a meaningful way. The Government's tax cuts passed through Parliament last week, with stage one soon to be seen in bank accounts as people lodge their tax returns. On past behaviour, UBS economists estimate that half the returns will be lodged by the end of September, another quarter by the end of this year and the remaining quarter over the first half of 2020. Treasurer Josh Frydenberg is hoping taxpayers will pass much of the cash they receive straight into the tills of their local stores. "I'm very confident this money will be used to ensure greater economic activity. It will be used at the local shop. It will be supporting local employers and local businesses," he said. "There are a number of things that are happening together with these tax cuts that will continue to see strong economic activity across the Australian economy." But NAB's economists, using similar modelling to Treasury and the Reserve Bank, predict that the $7.5 billion in tax offsets is likely to have "only a marginal effect on the economy". NAB's chief economist Alan Oster said the amount of cash being splashed was small in a roughly $2 trillion economy. "So it's about 0.3 per cent of the economy, in terms of the cash," he told The Business.     "When we run our macro[economic] models we get very small impacts there, because half the money gets spent, half gets saved." Economists at UBS expect that retailer sales could be about 1.1 percentage points higher than they would be otherwise over the next year. "Based on the 08/09 cash handouts, we assume 50 per cent of these tax cuts will be spent on retail (with likely another 20 per cent on other non-retail consumption)," UBS noted. "Following cash handouts in 08/09, clothing, department stores, and eating out showed the largest improvement. A similar pattern could be expected with 'windfall' money spent on discretionary consumption." In a recent analysis, ANZ's economic team suggested that retail may not see as much of the cash as it did back in 2008/09. https://www.abc.net.au/news/2019-07-10/tax-cuts-wont-deliver-much-economic-boost-warns-nab/11295228

Were the conservative supporters not telling us in 2009 that it was all going to be spent on Asian TV's and on the Pokies ?

John Smith wrote on Jul 10^th, 2019 at 5:07pm:

Quote: NAB warns tax cuts won't deliver much economic boost National Australia Bank modelling has cast doubt on the belief the tax refunds that will soon start flowing into taxpayers' bank accounts will stimulate the economy in a meaningful way. The Government's tax cuts passed through Parliament last week, with stage one soon to be seen in bank accounts as people lodge their tax returns. On past behaviour, UBS economists estimate that half the returns will be lodged by the end of September, another quarter by the end of this year and the remaining quarter over the first half of 2020. Treasurer Josh Frydenberg is hoping taxpayers will pass much of the cash they receive straight into the tills of their local stores. "I'm very confident this money will be used to ensure greater economic activity. It will be used at the local shop. It will be supporting local employers and local businesses," he said. "There are a number of things that are happening together with these tax cuts that will continue to see strong economic activity across the Australian economy." But NAB's economists, using similar modelling to Treasury and the Reserve Bank, predict that the $7.5 billion in tax offsets is likely to have "only a marginal effect on the economy". NAB's chief economist Alan Oster said the amount of cash being splashed was small in a roughly $2 trillion economy. "So it's about 0.3 per cent of the economy, in terms of the cash," he told The Business.     "When we run our macro[economic] models we get very small impacts there, because half the money gets spent, half gets saved." Economists at UBS expect that retailer sales could be about 1.1 percentage points higher than they would be otherwise over the next year. "Based on the 08/09 cash handouts, we assume 50 per cent of these tax cuts will be spent on retail (with likely another 20 per cent on other non-retail consumption)," UBS noted. "Following cash handouts in 08/09, clothing, department stores, and eating out showed the largest improvement. A similar pattern could be expected with 'windfall' money spent on discretionary consumption." In a recent analysis, ANZ's economic team suggested that retail may not see as much of the cash as it did back in 2008/09. https://www.abc.net.au/news/2019-07-10/tax-cuts-wont-deliver-much-economic-boost-warns-nab/11295228

Quote:

"I'm very confident this money will be used to ensure greater economic activity. It will be used at the local shop. It will be supporting local employers and local businesses," he said.

Yet the biggest government effort was to get the parts passed that will cost us 100 X more than this first instalment and will give none of these benefits.

What they really wanted does not help at all.

Dnarever wrote on Jul 10^th, 2019 at 7:44pm:

Were the conservative supporters not telling us in 2009 that it was all going to be spent on Asian TV's and on the Pokies ?

possible. I stopped listening to any claims by the libs. I'll start listening once I get my $550 bucks. :D

I'm glad the pensioners get their just desserts with the Coalition.  Sure, some would have voted for ALP, but if they couldn't explain to their fellow pensioners the coalition lies, they might as well share in common misery.

stunspore wrote on Jul 11^th, 2019 at 6:55pm:

I'm glad the pensioners get their just desserts with the Coalition.  Sure, some would have voted for ALP, but if they couldn't explain to their fellow pensioners the coalition lies, they might as well share in common misery.

Not all. I'm a pensioner in Gilmore electorate and the pensioner vote was responsible for the libs finally getting the boot. Just hope they hang tough next election.

macman wrote on Jul 12^th, 2019 at 9:14am:

stunspore wrote on Jul 11th, 2019 at 6:55pm: I'm glad the pensioners get their just desserts with the Coalition.  Sure, some would have voted for ALP, but if they couldn't explain to their fellow pensioners the coalition lies, they might as well share in common misery. Not all. I'm a pensioner in Gilmore electorate and the pensioner vote was responsible for the libs finally getting the boot. Just hope they hang tough next election.

I hope they survive. The Libs are quietly trying to kill off as many vulnerable, non-Lib-voting people as they can. Pensioners can't vote against the government if they've frozen to death in an unheated home.

Nothing compared to the hurt and agony that Labor's planned huge tax increases on everybody would have caused.

stunspore wrote on Jul 11^th, 2019 at 6:55pm:

I'm glad the pensioners get their just desserts with the Coalition.  Sure, some would have voted for ALP, but if they couldn't explain to their fellow pensioners the coalition lies, they might as well share in common misery.

There will be an adjustment to the deeming rate and pensioners receive an increase to the pension on a regular basis.

Not to say that life isn't tough for pensioners .... it is.

On the other hand: half price car rego, cheap medicines, discounts on gas; water; public transport and electricity, bulk-billed doctor visits  ...

Things could be worse.

We could be living in Greece for example ... or North Korea!  :o

Yes Capt N but if the Labor Socialist Demons had gotten in retirees and pensioners would be living on the street by now after the Brutal Labor Butchers swung the axe.

The Brutal Labor Butchers plan to ease hospital bed shortages was to introduce euthanasia.

Not to mention their planned Death Tax and Retiree Tax.

juliar wrote on Jul 12^th, 2019 at 1:10pm:

Yes Capt N but if the Labor Socialist Demons had gotten in retirees and pensioners would be living on the street by now after the Brutal Labor Butchers swung the axe. The Brutal Labor Butchers plan to ease hospital bed shortages was to introduce euthanasia. Not to mention their planned Death Tax and Retiree Tax.

Reduced to hypotheticals and "what-ifs".
Right now, Coalition in charge and pensioners in trouble (though not for long, they don't have long to wait).

Poor Stunned still secretly believes Labor won the election.

juliar wrote on Jul 12^th, 2019 at 1:43pm:

Poor Stunned still secretly believes Labor won the election.

Hardly.  People more concerned with how to put bread on the table under a Coalition government, not dreaming about what happens if ALP got in.  Reality check for them - Coalition is not on their side.

Compare the Libs' reasonably fair TAX REDUCTIONS with the HUGE TAX INCREASES and NEW TAXES like death Duties that the LUNATIC EXTREMIST GREENY controlled Labor Party was planning to crush the Australian people with.

Now something to rally the Lefties. The Decline and Fall of the Labor Party. When will Labor and the Greenies unite into the new GARBO Party ?



Labor Now A Party Of Capitulation And Parliamentary Irrelevance
By Ben Eltham on      July 10, 2019 Australian Politics

https://newmatilda.com/wp-content/uploads/2019/07/Anthony-Albanese-3-740x357.jpg
Opposition leader, Anthony Albanese. (IMAGE: Nic MacBean, Flickr)

These are dark days for the Australian left, writes Ben Eltham.

Anyone who thinks that elections don’t matter would do well to observe the smoking ruins of Australian social democracy this week, in the wake of Scott Morrison’s tax cuts.

As the Coalitions staggering $158 billion tax cut sailed through the Parliament last week , we caught a glimpse of a newer, stranger and grimmer Australia, a nation even more divided and unequal than we feared.

Seven weeks ago, Australia seemed headed towards a Shorten Labor government. The ALP had an ambitious policy agenda to make Australia fairer and more equal, winding back tax subsidies to the rich and investing heavily in health and education. Labor’s vision wasn’t exactly democratic socialism, but it was certainly a cautious step towards repairing the damage wrought by three decades of neoliberalism.

Less than two months and a surprise election victory later, Scott Morrison’s Coalition has just delivered one of the largest upward redistributions in modern Australian history.

What do the tax cuts mean? In the short term, voters get a handy tax rebate that will stimulate the ailing domestic economy. In the longer term, the passage of the massive tax bill heralds a new era of flat taxes in this country, pointing the way to a level of inequality that will make the discontents and resentments of the 2019 election look like kindergarten spats.

The tax cuts voted through this week will flatten Australia’s tax system in ways that few voters understand, but which will slowly and inexorably grind away what’s left of Australia’s communal life. Tens of billions of dollars of tax cuts will be handed to the wealthiest in our society. A ticking time bomb has also been set to detonate underneath the federal budget in 2024. If the Coalition is still in power, it will use it to slash Commonwealth spending to social services, ripping the guts out of education and Medicare, and further rending Australia’s threadbare social safety net.

The rich will get richer – much richer. They will use the extra disposable income to buy bigger houses, better holidays, and more expensive private schooling for their pampered children. For the well-to-do, times will be good. They will enjoy the last decades of a dying planet happily ensconced in a golden cage of conspicuous consumption.

Read the FULL story of the end of Labor here

https://newmatilda.com/2019/07/10/labor-now-a-party-of-capitulation-and-parliamentary-irrelevance/

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the Coalitions staggering $158 billion tax cut sailed through the Parliament last week

Unfunded and unaffordable
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stranger and grimmer Australia, a nation even more divided and unequal than we feared.

Divided unequal and unfair
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The ALP had an ambitious policy agenda to make Australia fairer and more equal,

Make Australia fairer ?
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winding back tax subsidies to the rich

Now we get the opposite

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investing heavily in health and education.

Now we get the opposite
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it was certainly a cautious step towards repairing the damage wrought by three decades of neoliberalism.

Repairing the damage

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Scott Morrison’s Coalition has just delivered one of the largest upward redistributions in modern Australian history.

Spent billions that he does not have on tax cuts that will only line the pockets of his mates.

You post this like you think that Australia's mistake is something to be proud of - it is almost like you think that the Liberals winning the election is a good thing.