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Myefo: Moody's says budget deficits will be greater than projected – politics live Myefo: Moody's says budget deficits will be greater than projected – politics live
(35 minutes later)
3.26am GMT
03:26
So while revenue coming into government has dropped, there has also been a drop in what the government pays out.
The drop in government payments is due partly to the following factors:
Why? I have no answers as yet but I am seeking them. Any ideas, let me know.
3.10am GMT
03:10
The Labor finance shadow, Jim Chalmers, rejects suggestions the opposition should chip in and support government savings measures more. He says the government could dump the $50bn corporate tax cuts with a stroke of a pen if it wants to really repair the budget.
No opposition in recent memory has put more effort into proposing alternative savings when we oppose the savings the government has put.
We took $130bn worth of savings to a federal election, which is unheard of in this country.
The effort that we put into proposing alternatives when we won’t cop smashing Medicare or we won’t cop smashing the most vulnerable people in this country to repair the budget. We believe in budget repair that’s fair. We have pitched up those alternatives for that reason because we do think there’s a better way.
Both sides agree that we need to fix the mess that the government has made of the budget. We think there’s a better way to do it.
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at 3.24am GMT
3.06am GMT
03:06
Chris Bowen is asked, if Labor would reconsider supporting some of the government’s measures to repair the budget.
It was a theme of Scott Morrison’s presentation that he needs “partners in parliament”.
Moody’s also made the point that legislating savings measures remains “challenging”.
But Bowen says Labor had a responsibility to its own voters.
The treasurer was boasting a few minutes ago he passed two-thirds of the government’s savings objectives, that’s right.
That’s with our support. Some of them are our ideas, which they then adopted. So we have shown that we can work with the government in the parliament to pass sensible savings measures, the treasurer himself said two-thirds has been passed. Yep and that was with, by and large, our support.
But what we won’t do is sell out those Australians who voted for us and rely on us to protect them. We won’t say that it’s OK for unemployed people to wait an inordinate amount of time for basic support. We won’t say it’s OK that Australians should have the highest pension age in the world. We won’t say it’s OK because it’s not OK.
Updated
at 3.25am GMT
2.58am GMT
02:58
From AAP, reaction from the ACTU:
Trade unions say the government still refuses to acknowledge it has a revenue problem and continues to squib tax reform.The ACTU secretary, Dave Oliver, criticised the prime minister, Malcolm Turnbull, for delivering spending cuts that hit ordinary Australians, as well as presiding over an economy in reverse.“Mr Turnbull could give all Australians some good news ahead of Christmas and outline a plan for growth based on more well-paid, secure jobs,” he said.
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at 3.06am GMT
2.58am GMT
02:58
From AAP, reaction from the business sector:
Business believes the midyear budget update is a fresh reminder for parliament to work together to get the nation’s finances back in the black.The review, released on Monday, shows the bottom line worsening over the next three years but still with an expectation of a return to surplus by 2021.“The opposition and crossbenchers share with the government responsibility for the slow progress in balancing the budget and reducing the intergenerational burden of deficits,” Australian Chamber of Commerce and Industry CEO James Pearson said.Pearson praised treasurer Scott Morrison for avoiding the temptation to reach for “economy-crushing” tax increases.“It was now clear a young Australian born in 2008 may need to wait until their teenage years before they experience a budget surplus,” he said.“Prolonged budget deficits mean long into their adulthood, that child will be paying the price for the collective reluctance of our current generation of politicians to make the tough decisions needed to curb spending.”
Updated
at 3.07am GMT
2.56am GMT
02:56
Labor finance shadow Jim Chalmers calls the statement a triple-F performance from the Coalition.
If Australia loses its coveted AAA rating, that means, that means higher costs for families and small businesses right around the country.
Now higher mortgage repayments would be a steep price for Australians to pay for this treasurer and this government’s incompetence. They promised that they would fix the budget and they promised jobs and growth. Instead we got bigger deficits, we got a shrinking economy and we have got those full-time jobs disappearing. They have delivered precisely the opposite of what they promised that would deliver.
Updated
at 3.07am GMT
2.51am GMT2.51am GMT
02:5102:51
Chris Bowen:Chris Bowen:
This update confirms the fact that since the Liberals and Nationals came to office, debt is around $100bn higher, that’s around $4,500 for every Australian. This update confirms the fact that, since the Liberals and Nationals came to office, debt is around $100bn higher, that’s around $4,500 for every Australian.
It confirms the fact that this government has no plan, no proper plan, well thought out plan, importantly which can pass the parliament to see our budget surplus protected. It confirms the fact that this government has no plan, no proper plan, well thought out plan, importantly, which can pass the parliament to see our budget surplus protected.
We warned during the election campaign that the government’s forecasts were overly optimistic.We warned during the election campaign that the government’s forecasts were overly optimistic.
UpdatedUpdated
at 2.53am GMT at 3.08am GMT
2.49am GMT2.49am GMT
02:4902:49
Labor: surplus is wafer thin and could be fixed by dumping the corporate tax cutsLabor: surplus is wafer thin and could be fixed by dumping the corporate tax cuts
Labor’s Chris Bowen is up now with the finance shadow, Jim Chalmers.Labor’s Chris Bowen is up now with the finance shadow, Jim Chalmers.
We welcome the fact that the surplus will be projected to continue for 20/21, however, it is a wafer-thin surplus, subject to any changes in the budget parameters that are, that would be further announced. It is a wafer-thin surplus which could be blown over by the slightest breeze. Now, the fact of the matter is that there could be a better way. The surplus for 20/21 could be around $4bn better if the government dropped their big business tax cuts and adopted Labor’s sensible plans for negative gearing and capital gains tax reform.We welcome the fact that the surplus will be projected to continue for 20/21, however, it is a wafer-thin surplus, subject to any changes in the budget parameters that are, that would be further announced. It is a wafer-thin surplus which could be blown over by the slightest breeze. Now, the fact of the matter is that there could be a better way. The surplus for 20/21 could be around $4bn better if the government dropped their big business tax cuts and adopted Labor’s sensible plans for negative gearing and capital gains tax reform.
UpdatedUpdated
at 2.54am GMTat 2.54am GMT
2.44am GMT2.44am GMT
02:4402:44
#MYEFO statement from Moodys on Australia's AAA rating #auspol pic.twitter.com/d2NDNcjGXH#MYEFO statement from Moodys on Australia's AAA rating #auspol pic.twitter.com/d2NDNcjGXH
2.42am GMT2.42am GMT
02:4202:42
Moody's expects budget deficits to be bigger than government projectionsMoody's expects budget deficits to be bigger than government projections
Moody’s has issued a statement that questions the government’s Myefo statement. I will give the full statement in a minute.Moody’s has issued a statement that questions the government’s Myefo statement. I will give the full statement in a minute.
Here is the key sentences:Here is the key sentences:
Although progress has been made since the budget in implementing fiscal consolidation measures, this has been achieved mainly through appropriations and regulations. Legislating fiscal consolidation measures remains challenging.Although progress has been made since the budget in implementing fiscal consolidation measures, this has been achieved mainly through appropriations and regulations. Legislating fiscal consolidation measures remains challenging.
As a result, we expect that the budget deficits will be somewhat wider for longer than currently projected. Gross general government debt will rise in the next couple of years to rise to around 42% of GDP in our projections. This is broadly in line with the median level of AAA-rated sovereigns.As a result, we expect that the budget deficits will be somewhat wider for longer than currently projected. Gross general government debt will rise in the next couple of years to rise to around 42% of GDP in our projections. This is broadly in line with the median level of AAA-rated sovereigns.
UpdatedUpdated
at 2.49am GMTat 2.49am GMT
2.33am GMT2.33am GMT
02:3302:33
BREAKING: Moody's says expects budget deficits to be bigger than revealed in #MYEFO...BREAKING: Moody's says expects budget deficits to be bigger than revealed in #MYEFO...
2.33am GMT2.33am GMT
02:3302:33
Abbott Hockey Asset Recycling Fund dumpedAbbott Hockey Asset Recycling Fund dumped
The end of the Arf.The end of the Arf.
This was the fund that would have provided incentive payments to state and territory governments that sell assets and use the proceeds to build “nation-building infrastructure”.This was the fund that would have provided incentive payments to state and territory governments that sell assets and use the proceeds to build “nation-building infrastructure”.
Q: Can I ask about the Assets Recycling Fund? It was a rather miserable end for Joe Hockey’s centrepiece for 2014. What leverage are you going to use on States to privatise and the like?Q: Can I ask about the Assets Recycling Fund? It was a rather miserable end for Joe Hockey’s centrepiece for 2014. What leverage are you going to use on States to privatise and the like?
Just on the second question, the Asset Recycling initiative was a roaring success but what has turned out to be the case is that because the Senate wasn’t prepared to legislate the establishment of the Asset Recycling Fund, given we were able to fulfil our commitment without setting up a specific fund. I would not agree with your characterisation there.Just on the second question, the Asset Recycling initiative was a roaring success but what has turned out to be the case is that because the Senate wasn’t prepared to legislate the establishment of the Asset Recycling Fund, given we were able to fulfil our commitment without setting up a specific fund. I would not agree with your characterisation there.
Elsewhere, Tony Abbott has yet to comment. He is on a peace and love trip with Bill Shorten.Elsewhere, Tony Abbott has yet to comment. He is on a peace and love trip with Bill Shorten.
Peace in the Middle East. @billshortenmp @TonyAbbottMHR @TimSmithMP Australia Israel UK Leadership Dialogue #auspol pic.twitter.com/prw3GtZRqwPeace in the Middle East. @billshortenmp @TonyAbbottMHR @TimSmithMP Australia Israel UK Leadership Dialogue #auspol pic.twitter.com/prw3GtZRqw
2.22am GMT2.22am GMT
02:2202:22
Tony Abbott nanny childcare program dumpedTony Abbott nanny childcare program dumped
Tony Abbott’s so-called nannies pilot – the interim home-based carer subsidy program – has been dumped.Tony Abbott’s so-called nannies pilot – the interim home-based carer subsidy program – has been dumped.
The numbers in the pilot will be slashed from 3000 to 500 – a cut that will receive a saving of $170.4m over two years.The numbers in the pilot will be slashed from 3000 to 500 – a cut that will receive a saving of $170.4m over two years.
The government says there has been little take up of the pilot program, which aimed to subsidise nanny childcare for 10,000 kids. So while existing participants will be funded until it closes in June 2018, no new nannies will be funded.The government says there has been little take up of the pilot program, which aimed to subsidise nanny childcare for 10,000 kids. So while existing participants will be funded until it closes in June 2018, no new nannies will be funded.
It was heralded as the first big thing in the second Abbott childcare package of 2015, which followed the first big rolled gold signature childcare package which did not survive the partyroom.It was heralded as the first big thing in the second Abbott childcare package of 2015, which followed the first big rolled gold signature childcare package which did not survive the partyroom.
Scott Morrison announced the measure initially as social services minister in 2015.Scott Morrison announced the measure initially as social services minister in 2015.
Key workers such as nurses, police officers, ambulance officers and firefighters, as well as other shift workers, are too often unable to access childcare and take advantage of government support because of the nature and hours of their work.Key workers such as nurses, police officers, ambulance officers and firefighters, as well as other shift workers, are too often unable to access childcare and take advantage of government support because of the nature and hours of their work.
The same is often true for families in rural and regional areas and those who have children with special needs, for whom mainstream childcare services are often inaccessible, lack the necessary flexibility or do not cater for their specific needs.The same is often true for families in rural and regional areas and those who have children with special needs, for whom mainstream childcare services are often inaccessible, lack the necessary flexibility or do not cater for their specific needs.
UpdatedUpdated
at 2.28am GMTat 2.28am GMT
2.13am GMT2.13am GMT
02:1302:13
Let’s move on to the details of some key changes, some of which we knew about.Let’s move on to the details of some key changes, some of which we knew about.
The green army is cactus.The green army is cactus.
The government will cut the program, worth $224.7m over four years.The government will cut the program, worth $224.7m over four years.
Existing contracts will be funded.Existing contracts will be funded.
The majority of savings will be directed towards other programs with a bit for budget repair.The majority of savings will be directed towards other programs with a bit for budget repair.
UpdatedUpdated
at 2.29am GMTat 2.29am GMT
2.02am GMT2.02am GMT
02:0202:02
OK the press conference has wrapped with the treasurer’s well-known homage to the Australian singer Tina Arena.OK the press conference has wrapped with the treasurer’s well-known homage to the Australian singer Tina Arena.
We have measures of parliament which need the approval of partners to ensure future generations aren’t saddled with bad debt.We have measures of parliament which need the approval of partners to ensure future generations aren’t saddled with bad debt.
Bad debt paying for welfare payments of today through higher taxes on people in the future. That’s not the way we want to go.Bad debt paying for welfare payments of today through higher taxes on people in the future. That’s not the way we want to go.
So we are delivering on those commitments. We will continue to do that in the new year as we work towards next year’s budget.So we are delivering on those commitments. We will continue to do that in the new year as we work towards next year’s budget.
On that note, can I wish you all a very merry Christmas. Tina Arena I don’t think has a Christmas CD out this year, which is a great disappointment to me.On that note, can I wish you all a very merry Christmas. Tina Arena I don’t think has a Christmas CD out this year, which is a great disappointment to me.
I will have to go back to the old ones. I hope your families have a safe and Merry Christmas.I will have to go back to the old ones. I hope your families have a safe and Merry Christmas.
UpdatedUpdated
at 2.29am GMTat 2.29am GMT
1.54am GMT1.54am GMT
01:5401:54
Govt confirms the 15-16 MYEFO plan to change pathology bulk-bill arrangements has been deferred for "further consultation" - #MYEFOGovt confirms the 15-16 MYEFO plan to change pathology bulk-bill arrangements has been deferred for "further consultation" - #MYEFO
1.53am GMT1.53am GMT
01:5301:53
Our neighbour Shane Wright of the West Australian:Our neighbour Shane Wright of the West Australian:
The govt still has $205 million in savings for 16-17 to announce #MYEFOThe govt still has $205 million in savings for 16-17 to announce #MYEFO