Tuesday night’s federal budget lacked vision, but it could have been worse, much worse, according to CEO Western Research Institute Tom Murphy.
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Mr Murphy has described it as a ‘smoke and mirrors budget’ to get a surplus but said in the current economic circumstances that isn’t necessarily a bad thing.
He said he doesn’t think the Australian economy would be strong enough to stand up to the big cuts necessary to achieve a genuine surplus.
Mr Murphy said on one hand the emphasis on handouts to low income earners was good because they are feeling the impact of the increasing cost of living.
He added that this is even more important in the bush because people in the Central West have a generally lower taxable income than their city counterparts.
“At the same time I am not happy about the handout mentality of this government,” Mr Murphy said.
“It takes away incentive, it gives the government scope to buy votes and it creates poverty traps.
“I would be happier with them raising the tax threshold.”
Mr Murphy also doesn’t like the Gillard government’s tendency to mico-manage things.
However, he does feel there are two standout features in the budget.
The first is support for people with disabilities and their carers, because frequently these are the poorest members of society with the poorest health outcomes.
The second is the long overdue provision for better dental health.
“However, I think the government is sending out the wrong message by giving a lot to families but so little to business,” Mr Murphy said.