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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?
On Thursday, you can quiz the Treasurer Wayne Swan, then Shadow Treasurer Joe Hockey. Click on the image below to find the blogs.
Plus, replay our chats with Budget experts here.
7.30pm: Taxpayers are closer to paying more for the Medicare levy after the lower house passed legislation for the hike.
The measure was only put to parliament on Wednesday morning, with an emotional Prime Minister Julia Gillard choking up as she introduced the legislation.
The 0.5 percentage point rise on the levy is intended to be the main source of income for the national disability insurance scheme, DisabilityCare Australia.
The scheme starts in just seven weeks, on July 1.
Ms Gillard said after that date there would be no turning back.
“There will be no more `in principle’ and no more `when circumstances permit’,” she said through tears.
The opposition supported the measures and the unusual move to pass it through the lower house on the same day as its introduction.
“We view the Medicare levy increase as only a temporary measure until the budget has been repaired and is in strong surplus,” opposition spokesman for human services Kevin Andrews told parliament.
“We don’t like tax increases but we don’t think that Australians with a disability should miss out on a better deal due to poor decisions by a bad government.”
The lower house also passed legislation to set up a dedicated fund to hold the proceeds from the levy increase, and a bill that made technical amendments to the initial national disability insurance scheme Act.
The Medicare Levy Amendment (DisabilityCare Australia) Bill 2013, the DisabilityCare Australia Fund Bill 2013, the National Disability Insurance Scheme Legislation Amendment Bill 2013 and 10 associated bills now head to the Senate.
PM Julia Gillard in Question Time in the House of Representatives Chamber, Parliament House in Canberra. Picture: Kym Smith
6.28pm: Communications Minister Stephen Conroy has dismissed claims the federal budget reveals the national broadband network (NBN) is failing.
His opposition counterpart Malcolm Turnbull says the budget showed Labor had cut its planned equity investment in the NBN from this financial year to 2014/15 by $3.5 billion, or 20 per cent.
He says it is an “admission the (NBN) project is failing” and the cut in investment means more than one million premises that were expected to have fibre optic cable connections by 2015 now won’t have them.
“The gutting of the NBN’s funding is a clear admission it is disastrously behind the schedule unveiled by Stephen Conroy and (Prime Minister) Julia Gillard only nine months ago, in August 2012,” Mr Turnbull said today.
5.53pm: The future of federal funding for rail projects in Melbourne and Brisbane could be in doubt under a coalition government, with opposition transport spokesman Warren Truss saying it would have to be “weighed up”.
The coalition has said it opposes federal funding for urban commuter rail, claiming it’s the responsibility of the states and instead gives preference to city road projects.
In Tuesday’s budget the Gillard government pledged almost $4 million to two rail projects – $715 million to the Cross River Rail in Brisbane, and $3 billion to the Melbourne Metro.
Asked if a coalition government would honour state-federal agreements on the two projects, Mr Truss said “projects that are already under way, we’re clearly going to complete”.
“If there is no contract signed … it will have to obviously be weighed up against other projects,” the Nationals Leader told Sky News today.
5.25pm: The federal opposition is accusing the government of losing control of Australia’s borders, with the cost of managing asylum seekers blowing out by more than $3 billion.
Tuesday’s federal budget showed asylum seeker costs would be almost $2.9 billion in 2013/14 – more than $1.5 billion more than previously estimated.
Over the four years to 2015/16, the blowout totals $3.2 billion.
Opposition immigration spokesman Scott Morrison says the budget still falls well short of what the likely costs will be if the government’s “failed border policies” continue.
Labor’s claim their asylum budget costs will fall by 50 per cent over the forward estimates to less than $1.5 billion is “absurd”, he says.
“If Labor was preparing their budget on the basis of a change of government, then it may make some sense,” Mr Morrison said
4.35pm: Barnaby Joyce and Tony Windsor have had a post-Budget clash, with the Nationals Senate leader accusing the Independent MP of asking him to ”take it outside” in a verbal confrontation today.
But Mr Windsor has insisted he simply urged Senator Joyce to stop using the coward’s castle of Parliament to make allegations about the sale of part of his family farm to a coal company – not start a Parliamentary punch up.
”Do you want to take it outside? Something about going outside. I thought maybe he wanted to kiss me,” Senator Joyce said.
”I don’t know what it was about but obviously it’s under his skin. I wandered off, as gentleman. As always the gentleman.”
Bob Katter stirring the pot during Question Time in the House of Representatives today. Picture: Gary Ramage
3.59pm: The Federal Budget has received a mixed reaction from the states.
South Australian Premier Jay Weatherill says the state will lose $300 million in expected GST revenue as a result of the Federal Budget.
”It is, to say the least, challenging for us to have to deal with such a large revision of revenue in the next five years.”
The GST write-down was due to the decline in retail sales.
”The fact that retail spending has remained as flat as it has is certainly something that has not been forecast,” he said, referring to Commonwealth data SA was using to prepare its Budget.
He was asked about a Federal Budget allocation of $5 million to help pay for soundproofing of a church in the Adelaide electorate of Hindmarsh, held by the ALP with a margin of 5.7 per cent.
The Premier said the people who attended the church found the aircraft noise to be utterly disruptive and had sought funding for soundproofing which previously had been granted to hundreds of homes.
Bob Katter during Question Time in the House of Representatives. Picture: Ramage Gary
”It seems like a sensible thing to do but it is a matter for the Commonwealth.”
Prime Minister Julia Gillard denied there was any pork-barelling involved in the allocation of funding ahead of the September election, during an interview on ABC radio today.
Mr Weatherill welcomed federal infrastructure funding including $448 million to upgrade part of Adelaide’s South Road, which will be matched by the state government.
In Western Australia, Premier Colin Barnett has warned taxes may rise in the state if the state’s share of GST continues to slide.
Mr Barnett said he was dismayed but not surprised by the Federal Budget’s confirmation that WA’s projected slice of GST returns will fall from 55 cents in the dollar to 45 cents in the coming financial year.
If the slide continued, the state government would have to raise taxes, he said.
”If that comes to pass, and I hope it doesn’t, we will have no choice but to significantly increase taxes in this state,” he told reporters today.
Chris Pyne accused Bob Katter of sending his question about 457 visas to Employment Minister Bill Shorten, pictured, in advance. Picture: Gary Ramage
In NSW, Treasurer Mike Baird said the Federal Government isn’t serious about funding Sydney’s WestConnex motorway.
Tuesday night’s budget contained $1.8 billion for the project, which will link the city’s west with the airport and Port Botany precinct, as well as $400 million for a link between the F3 and M2.
But Mr Baird said today the state government would not receive most of the federal money until after 2018/19.
”What we wanted to see was a real commitment. If you are serious about providing funding, put it into the (forward) estimates or at least provide a provision to bring it into the estimates,” Mr Baird told reporters in Sydney.
”The only conclusion I can draw is that the Federal Government is just not serious about this project.”
Mr Baird said budget cuts to national partnership agreements would also reduce funds earmarked for frontline NSW health services, such as palliative and acute care.
”That’s about $350 million which has been ripped from frontline services . . . it will have a dramatic impact on the state.”
Opposition leader Tony Abbott and Shadow Treasurer Joe Hockey looking intense during Question Time today. Picture: Gary Ramage
Health Minister Tanya Plibersek has denied NSW would lose $350 million and accused the O’Farrell government of creating a ”smokescreen” for planned health cuts of its own in next month’s State Budget.
The Federal Budget had also provided an additional $1.5 billion in funding for NSW hospitals, she said.
Mr Baird said he was also concerned about a further reduction in GST revenue of $860 million.
3.04pm: The Budget showdown was interrupted by a shouted question from Queensland independent Bob Katter, and a mangled reply from Employment Minister Bill Shorten.
Mr Katter asked about use of 457 visas by Australia Post . . . and asked and asked and asked. He went on for so long Speaker Anna Burke turned off his microphone.
But he was on his feet again complaining when Liberal Chris Pyne accused him of sending his question to Mr Shorten in advance.
Finally the minister had his chance and mixed up Australia Post’s freight service, calling it Star Trek instead of Startrac.
Prime Minister Julia Gillard entering Question Time in the House of Representatives. Picture: Gary Ramage
”Star Trek is your industrial relations policy,” he told laughing Opposition MPs.
Meanwhile, Mr Katter was warned by Speaker Burke.
”I’m not thinking of asking the Sergeant at Arms to escort the member for Kennedy from the Chamber but I’m getting close,” she said.
Soon after she ejected him for an hour after he kept speaking out of turn.
2.23pm: Opposition Leader Tony Abbott opened Question Time by asking the Prime Minister why the Budget could be trusted when the Government had made so many assurances that it would be in surplus.
The Prime Minister replied that the Opposition wanted to cut to the bone which would cost jobs.
The Shadow Treasurer Joe Hockey asked Treasurer Wayne Swan what “peak gross debt” would be.
Wayne Swan with his wife Kym entering the National Press Gallery in the Great Hall of Parliament House in Canberra. Picture: Gary Ramage
He was accused by Mr Swan of “fiscal fear-mongering”.
NDIS ‘great hope’ of Budget: Macklin
2.13pm: Disability Reform Minister Jenny Macklin said the national disability insurance scheme was ”the great hope” of this year’s Budget.
The massive reform would address a huge slab of disadvantaged Australians, she said.
”I think if you were to go to many, many people with disability you would see that they have not been getting the care and support they need,” Ms Macklin said during a three-minute press conference before she rushed to Question Time.
”They have not been getting the wherewithal to go to work, to participate in our society in a way that every Australian deserves.
Treasurer Wayne Swan arrives with family at the Great Hall, Parliament House, in Canberra, for today’s Press Club address. Picture: Ray Strange
”So I would say to all Australians, this is the great hope of this year’s Budget that we will create DisabilityCare Australia.”
Swan backs middle-class welfare
1.35pm: Treasurer Wayne Swan doesn’t believe so-called middle-class welfare being paid to families should be further wound back.
Asked if he had squibbed on an opportunity to dismantle the payments system set up under the former Howard government, Mr Swan said he backed payments to families of modest means.
”Being a parent is the most important role in our society,” he said, after giving a speech on the Federal Budget in Canberra on today.
”I will never support that agenda.”
But Mr Swan did agree the system of payments to families had got out of control under the former Coalition government.
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
On Tuesday, the government announced it would scrap the baby bonus and replace it with cash under the Family Benefit Part A.
Budget strategy is the right one: Swan
1.22pm: Treasurer Wayne Swan says his Federal Budget strikes the right balance between the ”austerity freaks” and those who want more spending no matter what the fiscal cost.
Mr Swan today delivered his first major post-Budget speech to a packed out lunch at the Great Hall in Parliament House in Canberra.
He defended the Budget settings, saying Labor had to make choices about what to prioritise amid challenging conditions for the global economy and a domestic economy that was shifting its focus to the non-mining sector.
”Given what we’ve faced, I think we’ve got the balance right,” he said.
”I do think there’s a sweet spot between the austerity freaks, who say cut way harder, and the Green-types, who would happily see the bottom fall out of the budget.”
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
Mr Swan said his Budget, which forecasts an uptick in unemployment and a slowing in economic growth, would turn out to be the right strategy at the right time.
The economy was 13 per cent bigger than five-and-a-half years ago and was the 12th largest in the world.
”Our unemployment rate starts with a ‘5’, at the same time underlying inflation and our official interest rates start with a ‘2’,” Mr Swan said.
Parts of the non-mining economy – like housing construction and retail – were starting to respond to the stimulus flowing from lower interest rates.
”Together with the production and export phase of the mining boom – as it continues to ramp up – these will become bigger drivers of growth,” Mr Swan said.
But the high Australian dollar was making things tough, particularly for government revenue.
”I’ve been upfront about the fact that we simply didn’t know how deep and enduring the impact on tax receipts would be from the unique cocktail of global forces and the high dollar,” the treasurer said.
Opposition leader Tony Abbott does the rounds of the press gallery at Parliament House in Canberra following last night’s Budget. Picture: Ray Strange
”We could not have perfectly foreseen the prolonged nature of subdued prices and profit growth right across the Australian economy.”
The Federal Budget forecasts deficits for this financial year out to 2014/15, before the balance swings to a small surplus of $800 million in 2015/16.
While Mr Swan was happy to be judged on the numbers, he said the policy environment was more complex.
”The money simply isn’t coming in the door like it used to,” he said.
”While my predecessor got a cumulative $334 billion revenue windfall and redefined what we mean by fiscal largesse, I’ve copped $170 billion in revenue write-downs.”
Mr Swan said his overriding concern was to protect the economy and jobs.
”I knew it would be a national tragedy to give in to the fiscal fearmongers by cutting further and deeper, because we’d be destroying the strong economic position that all Australians had worked so hard to achieve,” he said.
”I will never sacrifice jobs and growth on the altar of political expediency or to satisfy the ideologies of editorial writers.
”It would be irresponsible to impose a savage fiscal consolidation on the economy when it’s still transitioning from mining investment to other growth drivers in the face of the doggedly high dollar.”
The latest Budget sets out funding for two big Labor projects – a new formula for schools funding and improvements and a national disability care scheme – which it will take to the federal election in September.
”And we are doing this while setting out a pathway to surplus and paying down our already low and responsible level of borrowings,” Mr Swan said.
”This is a one-year Budget, but it’s a long-term plan for Australia.”
Mr Swan challenged the Opposition, which is in the box seat to win the elections according to opinion polls, to say how it will manage the economy – given they would face the same circumstances as Labor.
”The Opposition can now make its own choices, choose its own priorities,” he said.
”But what they cannot do is choose their own numbers.
”If they don’t want a particular revenue source, they must either specify another one, cut a service, or hit the bottom line.”
Mr Swan said the government did not intend any further major review of taxation, despite the Budget papers suggesting some parts of the system were volatile.
”I think if you look at the data, all of the taxes that are not associated with profitability have held up reasonably well, but all of the profit-based taxes have taken a turn for the worst,” he said.
The Treasurer said there were loopholes in the corporate tax system which were being exploited by some companies and the budget identified some of those and would aim to find $4 billion in savings in that area.
He said Labor would never lift the GST.
”Our party and our government rejects the notion that you’ve got to lift the GST,” he said.
Budget leaves families ‘on a cliff’s edge’
1.05pm: Community groups say the Federal Government has left families hanging by not increasing welfare payments.
They say Tuesday’s Budget provides little relief for single mothers, many of whom were forced off Parenting Payments in January and onto the Newstart Allowance.
Many were left $60 to $100 worse off by the arrangement and had been hoping for a $50-a-week increase to the dole.
The government says increasing Newstart is too expensive, with the budget instead allowing welfare recipients to keep an extra $19 a week from part-time work before their payments are affected.
But the National Council of Single Mothers and their Children says the budget is ”completely devastating” for families.
”I’ve fielded calls from women who have broken down since they’ve learnt that their plight has not been heard,” chief executive Terese Edwards told reporters in Canberra today.
”They were hanging onto a cliff by the skin of their fingers and they were pinning their hopes on this budget.”
Gerard Thomas from the National Welfare Rights Network also slammed the ”missed opportunity” to boost welfare payments.
”The tragedy about this budget is also that the government talks about the dignity of work and getting people into work – (yet) there was no extra new programs or supports to get those people into jobs,” he said.
But Leah Hobson from the Australian Federation of Disability Organisations said the introduction of DisabilityCare Australia would generate more productive workers.
”People with disability will be able to think about a day when maybe they don’t have to worry about their wheelchair breaking down in the middle of the road,” she said.
Mr Swan said his overriding concern was to protect the economy and jobs.
”I knew it would be a national tragedy to give in to the fiscal fearmongers by cutting further and deeper, because we’d be destroying the strong economic position that all Australians had worked so hard to achieve,” he said.
”I will never sacrifice jobs and growth on the altar of political expediency or to satisfy the ideologies of editorial writers.
”It would be irresponsible to impose a savage fiscal consolidation on the economy when it’s still transitioning from mining investment to other growth drivers in the face of the doggedly high dollar.”
The latest budget sets out funding for two big Labor projects – a new formula for schools funding and improvements and a national disability care scheme – which it will take to the federal election in September.
”And we are doing this while setting out a pathway to surplus and paying down our already low and responsible level of borrowings,” Mr Swan said.
”This is a one-year Budget, but it’s a long-term plan for Australia.”
Mr Swan challenged the Opposition, which is in the box seat to win the elections according to opinion polls, to say how it will manage the economy – given they would face the same circumstances as Labor.
”The Opposition can now make its own choices, choose its own priorities,” he said.
”But what they cannot do is choose their own numbers.
”If they don’t want a particular revenue source, they must either specify another one, cut a service, or hit the bottom line”.
Budget Speech viewers down
12.45pm: Treasurer Wayne Swan’s Budget Speech challenged House Rules with 756,000 viewers tuning in on ABC1 and ABC News 24.
The ratings were slightly down on last year’s Budget Speech when 787,000 watched the ABC coverage.
The ABC’s 7.30 Budget Special averaged 787,000 across ABC1 and ABC News 24.
Budget ‘puts Western Sydney first’
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 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.
“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.
“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.
“DisabilityCare 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 DisabilityCare Australia fund to hold money raised from the levy increase. Ten associated bills will be presented to Parliament today.
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 commonsense 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 write-down,” 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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