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| Myefo: Scott Morrison reveals budget deficit to blow out by $26bn over four years – politics live | Myefo: Scott Morrison reveals budget deficit to blow out by $26bn over four years – politics live |
| (30 days later) | |
| 6.41am GMT | 6.41am GMT |
| 06:41 | 06:41 |
| Good night, Merry Christmas, and don't eat all the prawns | Good night, Merry Christmas, and don't eat all the prawns |
| That’s all folks. It really is goodbye from Politics Live now for 2015. | That’s all folks. It really is goodbye from Politics Live now for 2015. |
| Let’s wrap the main points of MYEFO, apart from my take home analysis, which I shared by reader request in the last post. | Let’s wrap the main points of MYEFO, apart from my take home analysis, which I shared by reader request in the last post. |
| [Politics Live theme music, roll credits.] | [Politics Live theme music, roll credits.] |
| Here are the known knowns. | Here are the known knowns. |
| Thank you all for your support and your brick bats throughout 2015. I appreciate both – although some days I probably appreciate the support more than the brickbats if I’m completely honest. | Thank you all for your support and your brick bats throughout 2015. I appreciate both – although some days I probably appreciate the support more than the brickbats if I’m completely honest. |
| Thanks to my colleagues, who fuel the blog when I can’t manage another word – and to Gabi and Mike, my partners in live blogue crimes against the Guardian Australia readership and politicians of all stripes. | Thanks to my colleagues, who fuel the blog when I can’t manage another word – and to Gabi and Mike, my partners in live blogue crimes against the Guardian Australia readership and politicians of all stripes. |
| See you in February. | See you in February. |
| 6.29am GMT | 6.29am GMT |
| 06:29 | 06:29 |
| As you asked, the objective lesson of MYEFO | As you asked, the objective lesson of MYEFO |
| Some readers have asked me what is the objective lesson of the day given I didn’t buy Bill Shorten’s lesson of the day: that this MYEFO contained harsher cuts than Tony Abbott and Joe Hockey’s handiwork. | Some readers have asked me what is the objective lesson of the day given I didn’t buy Bill Shorten’s lesson of the day: that this MYEFO contained harsher cuts than Tony Abbott and Joe Hockey’s handiwork. |
| The objective lesson of the day in my mind is pretty simple. | The objective lesson of the day in my mind is pretty simple. |
| Fixing the budget will be a tough task. It will require raising additional revenue (whatever Scott Morrison might say), as well as ensuring efficiency in government expenditures. It will certainly require a more comprehensive approach than building in quickie paper savings from welfare crackdowns (that may or may not eventuate), or chasing savings in health that you pretend won’t hit the consumer when, self evidently, they will hit the consumer. | Fixing the budget will be a tough task. It will require raising additional revenue (whatever Scott Morrison might say), as well as ensuring efficiency in government expenditures. It will certainly require a more comprehensive approach than building in quickie paper savings from welfare crackdowns (that may or may not eventuate), or chasing savings in health that you pretend won’t hit the consumer when, self evidently, they will hit the consumer. |
| This budget update has the distinct sound of desperate chasing of rats and mice in the hope that the budget trend will look vaguely credible. Sorry, it still doesn’t look credible. Much more work to do. | This budget update has the distinct sound of desperate chasing of rats and mice in the hope that the budget trend will look vaguely credible. Sorry, it still doesn’t look credible. Much more work to do. |
| Not only substantial policy work, also framing work. The government is trying to move past the mess of Tony Abbott and Joe Hockey, who came into government with thunderous over statements about the perilous state of the books, while peddling the fantasy the budget could be fixed without pain. But if the reboot is just folksy analogies about back seat drivers getting angsty about budget strategy – that ain’t going to cut it. Australians comprehensively rejected the agenda laid out in the 2014 budget, and the vehemence of the rejection has forced the government to go back to first principles at a time when it needs to be making a case for re-election. | Not only substantial policy work, also framing work. The government is trying to move past the mess of Tony Abbott and Joe Hockey, who came into government with thunderous over statements about the perilous state of the books, while peddling the fantasy the budget could be fixed without pain. But if the reboot is just folksy analogies about back seat drivers getting angsty about budget strategy – that ain’t going to cut it. Australians comprehensively rejected the agenda laid out in the 2014 budget, and the vehemence of the rejection has forced the government to go back to first principles at a time when it needs to be making a case for re-election. |
| So what’s the summary? | So what’s the summary? |
| The objective lesson of MYEFO is it’s about time the political conversation about fiscal sustainability and economic reform got serious, because we’ve about had it with the quick fixes and sugar hits and the nasty surprises that appear random because they are random. | The objective lesson of MYEFO is it’s about time the political conversation about fiscal sustainability and economic reform got serious, because we’ve about had it with the quick fixes and sugar hits and the nasty surprises that appear random because they are random. |
| The objective lesson of MYEFO is the government – in budget terms and reform terms – has blown its first two years in government. Whether it blows a third remains to be seen. | The objective lesson of MYEFO is the government – in budget terms and reform terms – has blown its first two years in government. Whether it blows a third remains to be seen. |
| 5.51am GMT | 5.51am GMT |
| 05:51 | 05:51 |
| How could I have missed the capping of the green army? | How could I have missed the capping of the green army? |
| The government will achieve savings by capping the number of green army projects at 500 per annum. | The government will achieve savings by capping the number of green army projects at 500 per annum. |
| Saving? $317.5m. | Saving? $317.5m. |
| The environment minister Greg Hunt will be very sad but pretending he is perfectly happy because that’s his form. | The environment minister Greg Hunt will be very sad but pretending he is perfectly happy because that’s his form. |
| 5.48am GMT | 5.48am GMT |
| 05:48 | 05:48 |
| Slight walk back in progress | Slight walk back in progress |
| We’ve had a few iterations today about the impact of the MYEFO health savings on people. Mathias Cormann said, rather uniquely, earlier on today that the changes to bulk billing incentives was not expected to have an impact on people. | We’ve had a few iterations today about the impact of the MYEFO health savings on people. Mathias Cormann said, rather uniquely, earlier on today that the changes to bulk billing incentives was not expected to have an impact on people. |
| Health minister Sussan Ley isn’t quite going that far. This is her formulation. | Health minister Sussan Ley isn’t quite going that far. This is her formulation. |
| We do not expect the changes to affect the majority of consumers due to the high level of competition in the sector, and will ensure some of these services are better aligned with other medical and health providers, such as GPs. | We do not expect the changes to affect the majority of consumers due to the high level of competition in the sector, and will ensure some of these services are better aligned with other medical and health providers, such as GPs. |
| It’s also important to note bulk billing incentives are paid direct to the pathology or diagnostic provider, not the patient. Patients with high out-of-pocket medical costs will also continue to be covered by the Medicare Safety Net protections. | It’s also important to note bulk billing incentives are paid direct to the pathology or diagnostic provider, not the patient. Patients with high out-of-pocket medical costs will also continue to be covered by the Medicare Safety Net protections. |
| 5.39am GMT | 5.39am GMT |
| 05:39 | 05:39 |
| Agility, anyone? | Agility, anyone? |
| 5.32am GMT | 5.32am GMT |
| 05:32 | 05:32 |
| Communications minister Mitch Fifield. | Communications minister Mitch Fifield. |
| The government has announced it will not proceed with the Book Council of Australia. This decision is reflected in the mid-year economic and fiscal outlook. I will be consulting widely with the literary community about alternative sector-led mechanisms for representation and promotion. I thank those who had indicated their willingness to serve on the council, particularly Louise Adler AM, who had agreed to be chair, and the many people who have generously shared their views on Australian writing and reading. | The government has announced it will not proceed with the Book Council of Australia. This decision is reflected in the mid-year economic and fiscal outlook. I will be consulting widely with the literary community about alternative sector-led mechanisms for representation and promotion. I thank those who had indicated their willingness to serve on the council, particularly Louise Adler AM, who had agreed to be chair, and the many people who have generously shared their views on Australian writing and reading. |
| 5.29am GMT | 5.29am GMT |
| 05:29 | 05:29 |
| This comparison isn’t like for like but it is illustrative. Just one little cameo from the arts portfolio. | This comparison isn’t like for like but it is illustrative. Just one little cameo from the arts portfolio. |
| Readers might remember earlier this year the government announced it would kick in $47.3m for two Hollywood blockbusters – Alien: Covenant and Thor: Ragnarok. There was much excitements and if memory serves, Ridley Scott beamed in from somewhere or other to be thrilled. | Readers might remember earlier this year the government announced it would kick in $47.3m for two Hollywood blockbusters – Alien: Covenant and Thor: Ragnarok. There was much excitements and if memory serves, Ridley Scott beamed in from somewhere or other to be thrilled. |
| But today the government pulled $52.5m from the communications and arts portfolio. The savings include imposing a 3% efficiency target on cultural and collecting agencies (reaping $36.8m), pulling back $9.6m from arts programs, including ending the Book Council of Australia, and pulling $6m from the department. | But today the government pulled $52.5m from the communications and arts portfolio. The savings include imposing a 3% efficiency target on cultural and collecting agencies (reaping $36.8m), pulling back $9.6m from arts programs, including ending the Book Council of Australia, and pulling $6m from the department. |
| As was once sung in a popular musical, nothing comes from nothing, everything has got a little price. | As was once sung in a popular musical, nothing comes from nothing, everything has got a little price. |
| 5.14am GMT | 5.14am GMT |
| 05:14 | 05:14 |
| Be alert, not alarmed 2.0 | Be alert, not alarmed 2.0 |
| I’m still working carefully through the fine print. Despite all the belt tightening, the government has found $10m for a national security awareness campaign for this financial year. | I’m still working carefully through the fine print. Despite all the belt tightening, the government has found $10m for a national security awareness campaign for this financial year. |
| The campaign is designed to encourage the public to report suspicious activity to the national security hotline and will use television, radio, print, outdoor and online media. | The campaign is designed to encourage the public to report suspicious activity to the national security hotline and will use television, radio, print, outdoor and online media. |
| 5.03am GMT | 5.03am GMT |
| 05:03 | 05:03 |
| Co-payment by stealth | Co-payment by stealth |
| Shalailah Medhora | Shalailah Medhora |
| The Australian Medical Association has slammed the decision to reduce incentives for bulk-billing pathology and diagnostic services, saying the measure made up part of the now defunct GP co-payment proposal. | The Australian Medical Association has slammed the decision to reduce incentives for bulk-billing pathology and diagnostic services, saying the measure made up part of the now defunct GP co-payment proposal. |
| “Despite Tony Abbott saying that the measures are dead, buried and cremated, it appears that the hand of the co-payment component is reaching out beyond the grave,” the AMA president, Brian Owler, told Guardian Australia. | “Despite Tony Abbott saying that the measures are dead, buried and cremated, it appears that the hand of the co-payment component is reaching out beyond the grave,” the AMA president, Brian Owler, told Guardian Australia. |
| Reviving the measures “came out of the blue”, Owler said, adding that the health minister, Sussan Ley, had not flagged the policy with the AMA or with pathology and diagnostics experts. The Myefo announcement “makes a mockery” of Ley’s clinician-led Medicare review, he said. | Reviving the measures “came out of the blue”, Owler said, adding that the health minister, Sussan Ley, had not flagged the policy with the AMA or with pathology and diagnostics experts. The Myefo announcement “makes a mockery” of Ley’s clinician-led Medicare review, he said. |
| Cutting bulk-billing incentives “creates a false economy”, as it often shifts costs in the health system from primary care to the much more expensive public hospital system, Owler warned. “A significant proportion of the population will not proceed with medical tests,” he said. “That could be very dangerous for the patient.” | Cutting bulk-billing incentives “creates a false economy”, as it often shifts costs in the health system from primary care to the much more expensive public hospital system, Owler warned. “A significant proportion of the population will not proceed with medical tests,” he said. “That could be very dangerous for the patient.” |
| Updated | Updated |
| at 5.25am GMT | at 5.25am GMT |
| 4.38am GMT | 4.38am GMT |
| 04:38 | 04:38 |
| Now some key social services savings measures: | Now some key social services savings measures: |
| Updated | Updated |
| at 5.28am GMT | at 5.28am GMT |
| 4.10am GMT | 4.10am GMT |
| 04:10 | 04:10 |
| While I chase welfare, another chart from Nick Evershed. | While I chase welfare, another chart from Nick Evershed. |