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Hockey's $17 Billion Budget Blow-out

Today Tony Abbott and Joe Hockey released their economic update. They’re trying to claim their budget blowout is down to Labor’s decisions, but the facts speak for themselves.

We were promised the Coalition would pay back the debt and create 1 million jobs. Instead, the Mid Year Economic and Fiscal Outlook (MYEFO) confirms peak debt raising to $667 billion. The MYEFO reveals a 56 per cent blow-out in the 2013-14 budget deficit of more than $17 billion compared to the Pre-election Economic and Fiscal Outlook ($30.1 billion).

These are the facts as verified by Treasury and Finance at PEFO, and now at MYEFO: 

  • a deficit of $30.1 billion is now $47 billion – 60 percent of this blow-out is due to Abbott Government spending decisions
  • Labor had a Budget that was set to return to surplus in 2016-17. Tony Abbott and Joe Hockey don’t have a plan beyond blaming Labor. 
  • peak debt of $370 billion in 2016-17 now peaks at $460 billion.
  • unemployment was peaking at 6.25 per cent – it is now projected to peak at 6.25 per cent and stay there for three years.

If you’d like to know more you can read the press release which details the full story on MYEFO.

Today’s Budget statement also says a lot about the Abbott Government’s values and priorities. 

Joe Hockey and Tony Abbott have taken a $13.7 billion hit to the Budget bottom line over the next four years to give tax breaks to large multinational corporations, people with super balances over $2 million and for those who borrow to invest overseas.

At the same time, the Abbott Government has hurt up to 2.7 million small businesses missing out on the instant asset write-off, up to 110,000 small businesses missing out on a lower threshold for the loss carry back provisions and up to 3.6 million low and middle incomes earners now having to pay super tax on their contributions. 

Joe Hockey has also cut health and medical research by more than $500m – including cutting funding to Westmead Hospital by $100m – despite promising before the election that he wouldn’t take the axe to health services.

None of these decisions aren’t in the interests of everyday Australians. Turning around and saying the budget blowout isn’t their fault is a bit rich. It’s important that you and I don’t let them get away with that, so if you get the chance please let your friends and family know what’s really happening.

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