Well, the first budget under the new Labor government will be announced on Tuesday and we’re hearing things being released as “gossip” or “tidbits” that in my mind are quite interesting.
Before dealing with specifics, the fact is that with a huge surplus we have the opportunity to spend money on infrastructure but at the same time perhaps tweak certain taxes to correct some of the imbalances in our society.
I am looking see increased allocations to spending in Hospitals, Education and Transportation… even if it is simply an increase to state allocations.
But the taxes will be interesting. The increase on tax on “alcopops” is another example of a social tax. I think you will find the increase in the taxes in cigarettes to be on the cards. Luxury cars being subject to higher taxes would be another beneficial tax. The means testing of the baby bonus I would also welcome as well as perhaps the first home buyers grant.
To me, the tax system should be principled on the fact that those who can afford to pay, pay and those who are truly needy gain a benefit. At present taxes are applied with little thought on social responsibility.
Rudd was given a mandate to change, lets hope that the media keeps it into perspective when they analyse his output this week.