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May 15th, 2013 
FEDERAL Treasurer Wayne Swan and Prime Minister Julia Gillard have hit the airwaves and TV shows as they continue the hard-sell on the 2013 Budget.
Mr Swan, in his sixth and possibly last budget, delivered a $19.4 billion deficit on the back of a $17 billion hit to revenue forecasts. His first budget surplus is forecast for 2015/16 after a balanced result a year before that.
Wondering how the changes in the Budget will affect your life? Our experts talk about the changes here.
12.03pm: The federal government is putting its political interests in western Sydney ahead of easing congestion problems in the prime minister’s home state, the Victorian government says.
The federal government allocated nothing for Melbourne’s East West Link road in the budget but pledged $1.8 billion for Sydney’s M4 extension and M5 duplication, as well as $400 million for the F3-M2 link.
Victorian Treasurer Michael O’Brien says the Sydney road upgrades are ranked below Melbourne’s East West Link by Infrastructure Australia.
“The federal government has demonstrated it is very happy to throw billions of dollars at roads in western Sydney, in marginal seats in western Sydney, but they have turned their back on East West Link in Victoria,” Mr O’Brien said.
Prime Minister Julia Gillard, Treasurer Wayne Swan and Minister for Disability Reform Jenny Macklin with children with disabilities and their parents at Parliament House today after the Prime Minister introduced the Government’s NDIS bill. Picture: Ray Strange
Prime Minister Julia Gillard said her government was still waiting to receive a good business case for East West Link.
“On East West we are still waiting for comprehensive plans and a good business case from the Victorian government to be put in to Infrastructure Australia,” she told radio station Gold FM in Melbourne.
Vets get mental health care boost
11.20am: More veterans will have access to mental health services ahead of an expected surge in demand among those who have served in Afghanistan and other operations.
Veterans Affairs Minister Warren Snowdon said the federal budget will provide $14.6 million to extend arrangements for the treatment for diagnosed post traumatic stress disorder, other anxiety-related conditions and depression, without the need to lodge a compensation claim.
Treatments for alcohol and substance misuse disorders will also be included. In addition, Mr Snowdon says the arrangements will be extended to those with eligible peacetime service since 1994.
“With the draw down in Afghanistan, the mental health of veterans is a critical priority,” he said in a statement.
Prime Minister Julia Gillard gets emotional while speaking on the medicare levy bill in the House of Representatives Chamber, Parliament House in Canberra. Picture: Smith Kym
“This additional funding will help with the prevention, early intervention and treatment of mental health conditions for our veterans and provide an improved compensation claims process.”
Abbott snaps at ABC
11.02am: Federal Opposition Leader Tony Abbott lost his cool during a radio interview about his reaction to the budget, objecting to questions about a staffer he demoted for inappropriate behaviour.
He queried why he was being asked about the matter a day after the federal government handed down the budget for 2013/14.
“We have got a government in crisis, we have got a dire budgetary position. I think I have appropriately dealt with that particular subject. At a time like this, can’t the ABC do a little bit better?,” he asked on ABC radio today.
Mr Abbott earlier said the senior staff member who threatened an indigenous organisation’s funding in a “drunken brain snap” had been demoted and had his pay cut.
Mr Abbott said there would be no repercussions against that particular organisation if the coalition won government in September.
Opposition leader Tony Abbott does the rounds of the press gallery at Parliament House in Canberra following last night’s Budget. Picture: Ray Strange
“He (the staffer) has lost his position as chief of policy and suffered a pay cut as a result,” he said.
“As I said, it was a drunken brain snap. It should never have happened and there is not going to be any cut to the organisation in question.”
War of words erupts between Swan, Newman
10.38am: Wayne Swan has tweeted a blistering reply to Queensland’s Newman Government claiming it is getting an unfair slice of the budget pie.
“Newman Gov not fooling anyone with its fraudulent scare campaign on Fed Gov healthcare funding for QLD,” he tweeted.
The fact is Fed Gov hospital funding for QLD is set to increase by $1b over next 4 yrs. See for yourself here twitdoc.com/21F2
— Wayne Swan (@SwannyDPM) May 15, 2013
The Prime Minister has also waded into Twitter to encourage Western Australia to support the disability care scheme.
“We encourage the Western Australian Government to join the cause. All our people deserve the best.” – PM #DisabilityCare
— Julia Gillard (@JuliaGillard) May 15, 2013
Abbott set to unveil spending vision
10.10am: Tony Abbott said his official budget reply speech tomorrow won’t be a complete list of the coalition’s “spends and saves” but will paint a big economic picture.
Mr Abbott said the budget was lacking “hope, reward and opportunity”.
“There was really no hope in the budget last night, no credible hope of a surplus, no credible hope of new programs being competently and honestly delivered,” he said.
“I want to demonstrate to the Australian people tomorrow night that there is a better way, that they can have government which is honest and competent and straight with people.
“That’s the challenge I’ve set for myself, and I will be judged on that.”
Asked whether the coalition would accept the axing of the baby bonus and other spending cuts, Mr Abbott said: “People will have to wait until after the pre-election economic and fiscal outlook for a full list of our spends and saves.”
Mr Abbott said the coalition had already announced the axing of the SchoolKids Bonus and more measures would be “steadily” announced before the September 14 election.
“People will be much more in the picture about where they are going after tomorrow night than they were after listening to the treasurer,” he said of Thursday’s speech.
Emotional Gillard introduces NDIS
Source: News Limited
9.30am: As senior Labor figures continue to sell the budget, an emotional Julia Gillard introduced legislation to parliament that increases the Medicare levy to help fund a national disability insurance scheme.
In commending the bill to the house, Ms Gillard’s voice was full of emotion as she spoke about the changes the legislation will bring to the disabled.
“The people who have gathered here today from around the country to witness this debate know what it means,” she said fighting back tears.
“There will be no more in-principle, when circumstances permit.
“There will be launches, not trials. Permanent care, not temporary help.
“Disability Care starts in seven weeks’ time and there will be no turning back.”
RARE TEARS FROM PM MADE OF STEEL
The increase, from 1.5 per cent to two per cent, is expected to raise $20.4 billion over four years, the budget revealed.
Treasurer Wayne Swan will later introduce legislation that establishes a dedicated Disability Care Australia fund to hold money raised from the levy increase. Ten associated bills will be presented to parliament on Wednesday.
Spending still a problem, says Abbott
9.15am: Opposition Leader Tony Abbott says that the budget deficit proves the Gillard Government has a spending problem.
Mr Abbott told ABC radio the prime minister was in denial because the government had a spending problem, not a revenue problem.
Revenue this year increased by seven per cent and will do so by eight per cent next year.
“No surplus this year. No surplus next year. No surplus the year after that,” Mr Abbott said.
“They didn’t get it right last year. Why should anyone think they’ve got it right this year? They’ve never got it right.”
Wong defends axing baby bonus
She said no saving was ever painless, nor free of criticism.
“You’ve got to make a judgement about how you make savings and how you make room for the reforms of the future,” she said
“Someone asked me yesterday what are families getting out of this and I said, well you know what they’re getting, they’re getting investment in our schools that means we don’t keep leaving Australian children behind because of where they live and the circumstances of their families.”
Budget word cloud
8.50am: Meanwhile, an analysis of the budget speech shows the words invest, economy, Australia and fund were among the most used phrases in Mr Swan’s address.
8.40am:Treasurer Wayne Swan insists the economy is in “good nick” even though the government has been unable to achieve a budget surplus.
The treasurer argues the government’s budget position is not a reflection of the Australian economy.
“You can’t say because we’re in deficit now, although we’re coming back into surplus, that the economy is not in good nick,” he told the Nine Network this morning.
Mr Swan cited low unemployment, record low interest rates and strong investment as evidence of the economy’s strength.
As well, major major ratings agencies had endorsed the government’s fiscal strategy.
“We’ve got a AAA rating from three major global rating agencies for the first time in our history,” he said.
Mr Swan defended government spending, saying it was running at about the average of the past 30 years.
I trust Treasury: Gillard
8.37am: Prime Minister Julia Gillard says she’s “very trusting” of Treasury, despite the fact previous forecasts of tax revenue proving so wrong, leaving a massive black hole in the budget, as our own Jessica Marszalek reports.
The Prime Minister said forecast inaccuracies were not personally embarrassing as they were so difficult to make.
She said things were happening to the economy that had never happened before.
“Getting told off for failing to predict something that’s never happened before: I think from a common-sense perspective people would say gee, we understand it’s hard to foresee something that you have no past experience of,” she told the Today Show.
Opposition won’t guarantee baby bonus
8.15am: Tony Abbott said he did not want to have a knee-jerk reaction to the budget, including whether the opposition would back the school reforms plan or axing the baby bonus.
But he said he was committed to keeping Labor’s signature national disability care program.
“We want to look at it like adults and you’ll see our response unfold in the budget reply tomorrow night and then in Joe Hockey’s address to the press club next week,” Mr Abbott told the Nine Network.
Mr Abbott said the coalition had already announced a number of significant savings to help get the budget back into surplus, including axing the school kids bonus, reducing the commonwealth public service at stopping the arrival of asylum seekers on boats.
He said tax reform was very important, including his commitment to abolish the carbon and mining taxes.
“These are very substantial steps in the right direction, there’s no one single thing that you do to make our country competitive, there are a series of things that you do and there are three that we will do.”
Shadow treasurer Joe Hockey said the coalition will look closely at the details before announcing its position on the baby bonus.
“I think I owe my colleagues and the Australian people a commitment that we’re going to look very carefully at what is in this budget before we make rash, knee-jerk decisions,” he told ABC radio.
“There are a whole lot of cost pressures on families. The reason why we’re in this position is because the government just hasn’t done its job.”
Abbott on surplus
7.35am: Meanwhile, Opposition Leader Tony Abbott can’t say how long it would take a coalition government to get the federal budget back into surplus.
Mr Abbott this morning said the coalition is still looking at last night’s budget.
“The government has had 12 months to put a budget together, we’ve had less than 12 hours to analyse it,” Mr Abbott told the Seven Network.
He said it was too early to commit to a timeline for getting the budget back in the black.
“We’re not putting a timeline on it now,” Mr Abbott said.
But he said the coalition would get the budget back to surplus “as quickly as possible”, he said.
Gillard defends tough choices
7.05am: Earlier Prime Minister Gillard defended her government’s budget and said she is happy to argue for tough decisions like cutting the baby bonus.
“I said to the nation that I wanted to make new big structural spends…more money going into school and more money going into disability,” Ms Gillard told Sky News’ David Speers this morning.
“What you’ve got to do is make some choices … making room for the big investments, the wise investments that our nation needs, including education,” she said. “And I said to the nation very clearly in order to make those new big spends, I’d be asking the nation to make some big structural saves.”
Ms Gillard said she was prepared to stand and argue for some of the budget’s key savings including getting rid of the baby bonus introduced by the Howard government as they will fund long-term projects like the NDIS.
“I am prepared to stand and argue that getting rid of the baby bonus, making changes in family benefits, making changes in business tax is the right way of supporting children’s education at the highest possible standard.”
The prime minister again pointed to the “big hit” suffered by the Australian economy in the face of a high dollar which led to tax collections that failed to meet forecasts.
“The big hit has been from the revenue writedown,” she said. “Any prime minister sitting in this chair would have to deal with that.”
“Voters will make their decision on September 14. This budget is right for the nation.”
Ms Gillard’s comments came as she and Treasurer Wayne Swan began the hard sell of Labor’s election year budget this morning.
The pair are today embarking on a media blitz, doing the rounds of radio and television interviews ahead of Mr Swan’s post-budget address in the Great Hall of Parliament House in Canberra.
Key budget savings
6.02am: The Treasurer has delivered a higher-than-expected deficit of $19.4 billion for this financial year followed by a shortfall of $18 billion in 2013/14.
Read: What the budget means for you
Mr Swan has axed the baby bonus for new parents, although some may be eligible for a replacement increase to the Family Tax Benefit Part A.
The government says it has delayed the return to surplus so it can support jobs and growth, and set the funding course for the national disability care scheme and schools funding programs.
Opposition Leader Tony Abbott will deliver his budget-in-reply speech on Thursday night.
But the Coalition says the Budget shows the nation’s finances are in “complete chaos” and that Labor can not be trusted.
Opposition treasury spokesman Joe Hockey said the flawed strategy included more broken promises on family payments, higher taxes, debt levels above $300 billion and “no credible path back to surplus”.
“Budget 2013 delivers more debt, more deficits, more taxes, more broken promises and more uncertainty from an incompetent Labor Government that can’t be trusted,” Mr Hockey said.
“(It) confirms that Labor’s financial and budget management is in complete chaos.”
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