Labor wants spending to save jobs

Bill Shorten at a panel discussion at the Hyatt Hotel in Canberra. Picture: Smith Kym Source: News Limited

LABOR is today campaigning for the preservation of its $4 billion superannuation tax cut for low income earners as stark differences with the Coalition emerge over how to manage spending.

The Government is warning that abolition of the retirement savings assistance would hurt shop workers, check-out chicks and unskilled kitchen staff the most.

The Government and the Opposition agree that money will be tight for the May 14 Budget, but Labor wants deficit spending to save jobs and the Coalition wants savage spending cuts and removal of big programs such as carbon pricing.

The debate centres on what Treasurer Wayne Swan yesterday called a $7.5 billion sledgehammer blow to federal finances caused by the high Australian dollar and a fall in exports.

One of the casualties of a Coalition government would be the 15 per cent tax break for the superannuation accounts of workers on $37,000 a year and less.

Superannuation Minister Bill Shorten today released new research showing 218,850 retail workers would suffer if the Government's 15 per cent tax break for those earning $37,000 a year or less was abolished.

They would be followed by 145,999 checkout operators and 93,495 kitchen hands. These were the top three occupations, in numbers of workers, benefitting from the tax relief.

The tax cut affecting a total of 3.6 million workers saving for retirement began last July but Opposition Leader Tony Abbott yesterday confirmed a Coalition government would abolish it because it was to be funded by the mining tax, which would be repealed.

"So sure, the current government is making great play of what it says is our attack on low income earners' superannuation," Mr Abbott told Sky News yesterday.

"But we said from the beginning – we were upfront and honest before an election about this – if it can't be funded, it can't be paid..."

He accused the Government of "mortgaging the future to try to buy votes": "There are lots of promises that the current government will make going into the election that the Coalition simply won't match."

Superannuation Minister Shorten said: "I'd rather see a $500 boost to the super account of a kitchen hand or a checkout operator or a farm hand than into Tony Abbott's pocket."

He said: "I'm talking about mums working part-time while they care for young kids being hit with a $500 tax bill for contributing to her superannuation. That's not fair or smart.

"Women are already retiring with less because of the disparity in their pay compared to men, as well as the time they take out of the workforce to raise their children.

"Let's not make that situation worse, let's try to address it."

Other workers most affected by the superannuation tax cut include 89,722 in the hospitality industry, 83,167 cleaners and laundry staff, 57,696 receptionists, and 46,703 general clerks.

Mr Abbott said the Coalition would not be making big spending promises and said Australia was experiencing "a time of great fiscal stringency".

And he was backed up by Treasurer Wayne Swan who told ABC TV that the combination of the Australian dollar's high exchange rate and the fall in revenue from exports had reduced Government revenue.

"And as a consequence of that, that's caused a hit, if you like, a sledgehammer to revenues in the budget since the mid-year update of something like $7.5 billion," said Mr Swan.

"And of course the impact won't just be in this financial year, it will also be across the (four year) forward estimates.

"This is one of the reasons why I made the point at the end of last year that we were unlikely to return to surplus in 2012-13 because of this hit, if you like, to revenue from the high dollar and, of course, the lower terms of trade."

The Treasurer said there would not be "savage cuts across the Budget" to make up for the lost revenue because that would cost jobs.

"So our approach is very clear - in this budget we will support jobs and growth, we'll make the smart investments for the future and we'll do that within the context of a responsible medium-term fiscal policy," he said.

View the original article here

Labor wants spending to save jobs

Bill Shorten at a panel discussion at the Hyatt Hotel in Canberra. Picture: Smith Kym Source: News Limited

LABOR is today campaigning for the preservation of its $4 billion superannuation tax cut for low income earners as stark differences with the Coalition emerge over how to manage spending.

The Government is warning that abolition of the retirement savings assistance would hurt shop workers, check-out chicks and unskilled kitchen staff the most.

The Government and the Opposition agree that money will be tight for the May 14 Budget, but Labor wants deficit spending to save jobs and the Coalition wants savage spending cuts and removal of big programs such as carbon pricing.

The debate centres on what Treasurer Wayne Swan yesterday called a $7.5 billion sledgehammer blow to federal finances caused by the high Australian dollar and a fall in exports.

One of the casualties of a Coalition government would be the 15 per cent tax break for the superannuation accounts of workers on $37,000 a year and less.

Superannuation Minister Bill Shorten today released new research showing 218,850 retail workers would suffer if the Government's 15 per cent tax break for those earning $37,000 a year or less was abolished.

They would be followed by 145,999 checkout operators and 93,495 kitchen hands. These were the top three occupations, in numbers of workers, benefitting from the tax relief.

The tax cut affecting a total of 3.6 million workers saving for retirement began last July but Opposition Leader Tony Abbott yesterday confirmed a Coalition government would abolish it because it was to be funded by the mining tax, which would be repealed.

"So sure, the current government is making great play of what it says is our attack on low income earners' superannuation," Mr Abbott told Sky News yesterday.

"But we said from the beginning – we were upfront and honest before an election about this – if it can't be funded, it can't be paid..."

He accused the Government of "mortgaging the future to try to buy votes": "There are lots of promises that the current government will make going into the election that the Coalition simply won't match."

Superannuation Minister Shorten said: "I'd rather see a $500 boost to the super account of a kitchen hand or a checkout operator or a farm hand than into Tony Abbott's pocket."

He said: "I'm talking about mums working part-time while they care for young kids being hit with a $500 tax bill for contributing to her superannuation. That's not fair or smart.

"Women are already retiring with less because of the disparity in their pay compared to men, as well as the time they take out of the workforce to raise their children.

"Let's not make that situation worse, let's try to address it."

Other workers most affected by the superannuation tax cut include 89,722 in the hospitality industry, 83,167 cleaners and laundry staff, 57,696 receptionists, and 46,703 general clerks.

Mr Abbott said the Coalition would not be making big spending promises and said Australia was experiencing "a time of great fiscal stringency".

And he was backed up by Treasurer Wayne Swan who told ABC TV that the combination of the Australian dollar's high exchange rate and the fall in revenue from exports had reduced Government revenue.

"And as a consequence of that, that's caused a hit, if you like, a sledgehammer to revenues in the budget since the mid-year update of something like $7.5 billion," said Mr Swan.

"And of course the impact won't just be in this financial year, it will also be across the (four year) forward estimates.

"This is one of the reasons why I made the point at the end of last year that we were unlikely to return to surplus in 2012-13 because of this hit, if you like, to revenue from the high dollar and, of course, the lower terms of trade."

The Treasurer said there would not be "savage cuts across the Budget" to make up for the lost revenue because that would cost jobs.

"So our approach is very clear - in this budget we will support jobs and growth, we'll make the smart investments for the future and we'll do that within the context of a responsible medium-term fiscal policy," he said.

View the original article here

Labor wants spending to save jobs

Bill Shorten at a panel discussion at the Hyatt Hotel in Canberra. Picture: Smith Kym Source: News Limited

LABOR is today campaigning for the preservation of its $4 billion superannuation tax cut for low income earners as stark differences with the Coalition emerge over how to manage spending.

The Government is warning that abolition of the retirement savings assistance would hurt shop workers, check-out chicks and unskilled kitchen staff the most.

The Government and the Opposition agree that money will be tight for the May 14 Budget, but Labor wants deficit spending to save jobs and the Coalition wants savage spending cuts and removal of big programs such as carbon pricing.

The debate centres on what Treasurer Wayne Swan yesterday called a $7.5 billion sledgehammer blow to federal finances caused by the high Australian dollar and a fall in exports.

One of the casualties of a Coalition government would be the 15 per cent tax break for the superannuation accounts of workers on $37,000 a year and less.

Superannuation Minister Bill Shorten today released new research showing 218,850 retail workers would suffer if the Government's 15 per cent tax break for those earning $37,000 a year or less was abolished.

They would be followed by 145,999 checkout operators and 93,495 kitchen hands. These were the top three occupations, in numbers of workers, benefitting from the tax relief.

The tax cut affecting a total of 3.6 million workers saving for retirement began last July but Opposition Leader Tony Abbott yesterday confirmed a Coalition government would abolish it because it was to be funded by the mining tax, which would be repealed.

"So sure, the current government is making great play of what it says is our attack on low income earners' superannuation," Mr Abbott told Sky News yesterday.

"But we said from the beginning – we were upfront and honest before an election about this – if it can't be funded, it can't be paid..."

He accused the Government of "mortgaging the future to try to buy votes": "There are lots of promises that the current government will make going into the election that the Coalition simply won't match."

Superannuation Minister Shorten said: "I'd rather see a $500 boost to the super account of a kitchen hand or a checkout operator or a farm hand than into Tony Abbott's pocket."

He said: "I'm talking about mums working part-time while they care for young kids being hit with a $500 tax bill for contributing to her superannuation. That's not fair or smart.

"Women are already retiring with less because of the disparity in their pay compared to men, as well as the time they take out of the workforce to raise their children.

"Let's not make that situation worse, let's try to address it."

Other workers most affected by the superannuation tax cut include 89,722 in the hospitality industry, 83,167 cleaners and laundry staff, 57,696 receptionists, and 46,703 general clerks.

Mr Abbott said the Coalition would not be making big spending promises and said Australia was experiencing "a time of great fiscal stringency".

And he was backed up by Treasurer Wayne Swan who told ABC TV that the combination of the Australian dollar's high exchange rate and the fall in revenue from exports had reduced Government revenue.

"And as a consequence of that, that's caused a hit, if you like, a sledgehammer to revenues in the budget since the mid-year update of something like $7.5 billion," said Mr Swan.

"And of course the impact won't just be in this financial year, it will also be across the (four year) forward estimates.

"This is one of the reasons why I made the point at the end of last year that we were unlikely to return to surplus in 2012-13 because of this hit, if you like, to revenue from the high dollar and, of course, the lower terms of trade."

The Treasurer said there would not be "savage cuts across the Budget" to make up for the lost revenue because that would cost jobs.

"So our approach is very clear - in this budget we will support jobs and growth, we'll make the smart investments for the future and we'll do that within the context of a responsible medium-term fiscal policy," he said.

View the original article here

Labor wants spending to save jobs

Bill Shorten at a panel discussion at the Hyatt Hotel in Canberra. Picture: Smith Kym Source: News Limited

LABOR is today campaigning for the preservation of its $4 billion superannuation tax cut for low income earners as stark differences with the Coalition emerge over how to manage spending.

The Government is warning that abolition of the retirement savings assistance would hurt shop workers, check-out chicks and unskilled kitchen staff the most.

The Government and the Opposition agree that money will be tight for the May 14 Budget, but Labor wants deficit spending to save jobs and the Coalition wants savage spending cuts and removal of big programs such as carbon pricing.

The debate centres on what Treasurer Wayne Swan yesterday called a $7.5 billion sledgehammer blow to federal finances caused by the high Australian dollar and a fall in exports.

One of the casualties of a Coalition government would be the 15 per cent tax break for the superannuation accounts of workers on $37,000 a year and less.

Superannuation Minister Bill Shorten today released new research showing 218,850 retail workers would suffer if the Government's 15 per cent tax break for those earning $37,000 a year or less was abolished.

They would be followed by 145,999 checkout operators and 93,495 kitchen hands. These were the top three occupations, in numbers of workers, benefitting from the tax relief.

The tax cut affecting a total of 3.6 million workers saving for retirement began last July but Opposition Leader Tony Abbott yesterday confirmed a Coalition government would abolish it because it was to be funded by the mining tax, which would be repealed.

"So sure, the current government is making great play of what it says is our attack on low income earners' superannuation," Mr Abbott told Sky News yesterday.

"But we said from the beginning – we were upfront and honest before an election about this – if it can't be funded, it can't be paid..."

He accused the Government of "mortgaging the future to try to buy votes": "There are lots of promises that the current government will make going into the election that the Coalition simply won't match."

Superannuation Minister Shorten said: "I'd rather see a $500 boost to the super account of a kitchen hand or a checkout operator or a farm hand than into Tony Abbott's pocket."

He said: "I'm talking about mums working part-time while they care for young kids being hit with a $500 tax bill for contributing to her superannuation. That's not fair or smart.

"Women are already retiring with less because of the disparity in their pay compared to men, as well as the time they take out of the workforce to raise their children.

"Let's not make that situation worse, let's try to address it."

Other workers most affected by the superannuation tax cut include 89,722 in the hospitality industry, 83,167 cleaners and laundry staff, 57,696 receptionists, and 46,703 general clerks.

Mr Abbott said the Coalition would not be making big spending promises and said Australia was experiencing "a time of great fiscal stringency".

And he was backed up by Treasurer Wayne Swan who told ABC TV that the combination of the Australian dollar's high exchange rate and the fall in revenue from exports had reduced Government revenue.

"And as a consequence of that, that's caused a hit, if you like, a sledgehammer to revenues in the budget since the mid-year update of something like $7.5 billion," said Mr Swan.

"And of course the impact won't just be in this financial year, it will also be across the (four year) forward estimates.

"This is one of the reasons why I made the point at the end of last year that we were unlikely to return to surplus in 2012-13 because of this hit, if you like, to revenue from the high dollar and, of course, the lower terms of trade."

The Treasurer said there would not be "savage cuts across the Budget" to make up for the lost revenue because that would cost jobs.

"So our approach is very clear - in this budget we will support jobs and growth, we'll make the smart investments for the future and we'll do that within the context of a responsible medium-term fiscal policy," he said.

View the original article here

What Labor need to give up for Lent

EASTER is about crisp nights in front of an open campfire, roasting marshmallows before dirt-streaked happy little faces are tucked into sleeping bags.

It's about Easter-egg hunts and hot cross buns. It's a holy time for churchgoers, and for others simply a blessed relief from work.

But at its core, on the Christian calendar, it's a time of resurrection - of new life.

And as Prime Minister Julia Gillard's team emerges from its rotten and broken egg they need to think about Labor's new beginnings.

Ms Gillard may not have been nailed to the cross but Labor has been crucified.

As the newly emboldened Prime Minister gathers her freshly chosen team for a community cabinet tomorrow in Perth she will need to make significant changes.

What could she possibly do? How might a team of "last-picks'' improve Labor's chances? Even without a Judas in their ranks it will be tough.

Too much analysis is not necessarily good. Forget introspection and think tanks and committees and advice from foreign "experts''.

Just stop and chat to the real people on the streets and they will tell her the answer.

At school pick-up time, at the bus stop, at the community event or pub, at the ALP haunt or the sports match, the answers are remarkably similar.

Here's what Ms Gillard's team needs to give up for what's left of Lent and onwards to election day:
1) Stabbing each other in the back.
2) Class warfare.
3) Burning business (Perth is a good place to start).
4) Attacks on superannuation.
5) Changes to parenting payments for low income earners.

For a leader so disliked for so long it is telling that Julia Gillard was more likeable than ever the day the knives were pointed in her direction.

When she stood up in parliament on Thursday with an unwavering voice and steely determination, we saw, once again, a leader with strength.

But it's not enough to be at your best only when under attack, and when you are fighting for yourself, rather than for the country.

Switch off talkback radio for a moment and Ms Gillard is not hated with as much intensity as you'd expect. But there is despair over her failures. And there is despair over her shambolic divided team.

With Kevin Rudd sidelined and fewer distractions there is a real chance for the Prime Minister to take a leaf out of her own book and "take your best shot''. It may not be enough to win the next election, but just possibly to go out in a blaze of glory.

What do we want from Ms Gillard? To see her strength. For her to trust her instincts. To sell her achievements better. To speak from her heart, not from a script. She never really showed us the real Julia. What does she have to lose now?

Oh, but there's advice in spades for Opposition Leader Tony Abbott, too. Mr Abbott has an opportunity here to be a stark point of difference. He needs to rein in any temptation to jeer or over-play the moment. Fourth base is so close and the other team are scrambling for the ball. He needs to play it safe and strong.

Aside from calls for Malcolm Turnbull to step up to the plate, this is what people want from the Coalition:
1) Dignity and decency.
2) Respectful debate during question time.
3) Policies.

Politics going forward may have less intrigue and less theatre, but it's about time the dull business of governing took centre stage.

No one will miss the blood-letting as they toast marshmallows around the campfire this weekend.
 

View the original article here

What Labor need to give up for Lent

EASTER is about crisp nights in front of an open campfire, roasting marshmallows before dirt-streaked happy little faces are tucked into sleeping bags.

It's about Easter-egg hunts and hot cross buns. It's a holy time for churchgoers, and for others simply a blessed relief from work.

But at its core, on the Christian calendar, it's a time of resurrection - of new life.

And as Prime Minister Julia Gillard's team emerges from its rotten and broken egg they need to think about Labor's new beginnings.

Ms Gillard may not have been nailed to the cross but Labor has been crucified.

As the newly emboldened Prime Minister gathers her freshly chosen team for a community cabinet tomorrow in Perth she will need to make significant changes.

What could she possibly do? How might a team of "last-picks'' improve Labor's chances? Even without a Judas in their ranks it will be tough.

Too much analysis is not necessarily good. Forget introspection and think tanks and committees and advice from foreign "experts''.

Just stop and chat to the real people on the streets and they will tell her the answer.

At school pick-up time, at the bus stop, at the community event or pub, at the ALP haunt or the sports match, the answers are remarkably similar.

Here's what Ms Gillard's team needs to give up for what's left of Lent and onwards to election day:
1) Stabbing each other in the back.
2) Class warfare.
3) Burning business (Perth is a good place to start).
4) Attacks on superannuation.
5) Changes to parenting payments for low income earners.

For a leader so disliked for so long it is telling that Julia Gillard was more likeable than ever the day the knives were pointed in her direction.

When she stood up in parliament on Thursday with an unwavering voice and steely determination, we saw, once again, a leader with strength.

But it's not enough to be at your best only when under attack, and when you are fighting for yourself, rather than for the country.

Switch off talkback radio for a moment and Ms Gillard is not hated with as much intensity as you'd expect. But there is despair over her failures. And there is despair over her shambolic divided team.

With Kevin Rudd sidelined and fewer distractions there is a real chance for the Prime Minister to take a leaf out of her own book and "take your best shot''. It may not be enough to win the next election, but just possibly to go out in a blaze of glory.

What do we want from Ms Gillard? To see her strength. For her to trust her instincts. To sell her achievements better. To speak from her heart, not from a script. She never really showed us the real Julia. What does she have to lose now?

Oh, but there's advice in spades for Opposition Leader Tony Abbott, too. Mr Abbott has an opportunity here to be a stark point of difference. He needs to rein in any temptation to jeer or over-play the moment. Fourth base is so close and the other team are scrambling for the ball. He needs to play it safe and strong.

Aside from calls for Malcolm Turnbull to step up to the plate, this is what people want from the Coalition:
1) Dignity and decency.
2) Respectful debate during question time.
3) Policies.

Politics going forward may have less intrigue and less theatre, but it's about time the dull business of governing took centre stage.

No one will miss the blood-letting as they toast marshmallows around the campfire this weekend.
 

View the original article here