I feel sorry for old ScoMo. He was a reasonable PM but the latest revelation about appointing himself to five or more portfolios was just plain stupid. The only issue he directly interfered with (disastrously) was to stop a perfectly good gas project offshore from Newcastle proceeding. This project would have powered all homes in Australia for the next 30 years and the wealthy inner-city electorates were going to vote Teal regardless. Good one, ScoMo. How dumb can you get!
Albo was always going to break a promise the moment he became PM, namely the one to make household electricity cheaper by $275 per household per year. When you are going to increase the amount of unreliable, costly, renewable energy from 39 to 83 per cent of the grid over the next eight years, prices have to go up – a lot! In the UK, they’re talking about $9,000 (5,000 pounds) per year by Xmas time.
Which brings me to a question that is vexing the government: should the stage 3 tax cuts be canned? The unions and Greens want to can them. The government, at this stage, is sticking to its promise.
The cuts will see a blanket tax rate of 30 per cent on annual incomes of $45,000-$200,000. It means a politician in federal parliament or a well-off public servant on $211,250 will get a tax cut of $9,075 and a nurse on $72,235 a tax cut of only $680.
The cost to the budget over the next seven years will be $184.2 billion, of which $137.9 billion will be going to people earning over $120,000 pa.
I am in two minds. I like the idea of repealing stage 3 in a way and, if that occurs, I suggest it be made more palatable to our wealthier brothers and sisters by using the savings on money flagged over the next 10 years to be spent on much-needed investments in defence ($270 billion over 10 years). I doubt that will happen as a strong ADF is anathema to Albo’s Green mates.
However, it’s not just pollies and well-paid public servants who will benefit from stage 3 tax cuts, but also hard-working tradies and small business people around the country – people who actually produce something and employ people and keep our country prosperous, strong and growing. These people will receive much-needed extra funds to help sustain and grow their businesses. Recent history shows that where tax cuts have been given, the economy grows. Reagan and Thatcher did it. Howard did it. Even Donald Trump did it and their economies prospered. The next most likely UK PM, Liz Truss, is also promising it.
Whilst some lucky people who don’t need it will benefit, a much greater number of Australians who will benefit will put the money to good use. So Albo, on balance, you should stay strong on this one and keep your promise.
Get the latest Canberra Daily news, sport, entertainment, lifestyle, competitions and more delivered straight to your inbox with the Canberra Daily Newsletter. Sign up here.
