Budget 2014

[charmanderp]

Well I'm definitely not an economic expert but I don't see how taxing petrol/healthcare and cutting education can be good for our economy. I mean, people will have less money to spend, and in twenty years we'll have a generation of spasticated carpenters. Can also see the lack of a disability scheme hurting the long-term economy, as if we could target certain disabilities early, we could prevent a compounded disadvantage such that we'd save money on those people as well as have the able to enter the workforce. Unemployment is expected to rise slightly and growth to slow. So as harsh as this budget is, is it even valuable for the economy?

The National Disability Insurance Scheme is something that this budget actually hasn't cut.

[Chazef]

I read somewhere about currently enrolled students not being affected financially by fee deregulation, is this true? If so, does being on intermission and soon-to-be enrolled to another course count as being enrolled?

[Chazef]

Just found this on the govt budget FAQ page:

Current Commonwealth supported undergraduate student who is transferring their studies

Lyndal is enrolled in a Bachelor of Arts course at a public university. She will finish her first year of study at the end of 2014. In 2015, she will transfer her studies to a Bachelor of Visual Arts (at another public university).

Lyndal will not be affected by the changes to student contributions in 2016. Her student contribution cannot exceed the specified maximum student contribution rate until she finishes her study or until the end of 2020, whichever comes first.

hopefully I'm going to be considered in the same light although I haven't finished any units in my original degree (engineering) unlike this Lyndal character who's going to have a year of uni behind her when transferring.

[Professor Polonsky]

Spoiler

In truth, I have a bit more respect for the LNP. They've clearly prioritised the economy over their own popularity.

I'm not sure how having an austere budget would be good for our economy or is in any way needed, let alone an austere budget that also attempts to raise revenues in really insensible ways (increasing the top marginal tax rate by 2%, but not closing tax loopholes and thereby allowing tax minimisation schemes to continue?)

Also to anyone here supporting dereg: Contrary to popular belief, our fees are already one of the highest in the world. They will now likely rise to the highest in the world for courses like medicine, law and commerce. The most conservative estimates speak of a 25% fee increase for most courses, and so you can imagine those ones will go up by even more. (A large part of that estimate would only be the part necessitated by the government cutting their end of the deal by 20%). HECS is nice, but a lot of OECD (developed) countries out there have far better schemes, especially now that indexation will be to 10 year government bonds rather than CPI.

Our economy is the world's envy in many ways. It definitely does not need an austere budget right now. It is true that deficits grew considerably under Labor, but our overall debt position is comfortable enough that we can let them slowly wind down each fiscal year, rather than enter into an emergency austere budget.

On the other hand though, the burden placed on university students here is amongst the heaviest developed world's heaviest. So to have an austere budget that we don't need, what we are doing is placing an even heavier burden on students ... right.

I read somewhere about currently enrolled students not being affected financially by fee deregulation, is this true? If so, does being on intermission and soon-to-be enrolled to another course count as being enrolled?

Yeah, you're safe. As long as you accepted and deferred before budget day.

[rosalie.brown]

Phy124,

What I recommend is that you have a detailed read through the website below:

http://www.news.com.au/finance/economy/what-the-federal-budget-2014-means-for-you/story-fn84fgcm-1226916437313

The website outlines what the 2014 Budget means for you and how much you will have to pay, depending on your circumstances.

In the words from The Age, these few sentences from their latest editorial on the Liberal Party (or more specifically, Tony Abbott), essentially summarise my opinion:

"Mr Abbott is about to find out just how difficult his task may be. He must seek forgiveness from the Australian people for breaking promises in delivering the first budget of his government.

This is a budget of cuts, with measures Mr Abbott pledged never to introduce when he sought and won the electorate's permission to form a government. To speak plainly, a new tax, temporary or otherwise, is a new tax. Less money for the national broadcaster is less money for the national broadcaster.

The decision to strip millions of dollars from health, education and indigenous affairs is a clear repudiation of the "no surprises" style of government Mr Abbott promised. Even his much-vaunted paid parental leave scheme is now confirmed as substantially reduced. Fuel costs will rise and a visit to the doctor will be more expensive."

[Russ]

thoughts;

GP copay is fine. In practice it may very well turn out to be poorly devised but I don't object to the principle of it or the ideology. Nobody is entitled to free universal healthcare, it's just a thing we attempt to provide if possible. Many GPs will waive the fee for the disadvantaged, which is the reason they get a net $2 pay raise per patient. Making it $7 for each item means there are going to be some stupidly expensive visits if they include a script and pathology etc. Some number of new GP places though, which sort of makes it better?

Newstart changes are dumb and poorly thought out. No idea what they're really thinking there. Seems like a catch 22 almost.

Deregulation of university fees would likely not be the end of the world if they were keeping the HECS debt indexed rather than changing it. Free education would obviously be preferred but the changes to the payment system are worse than the changes to the fees.

Deficit levy is fine. Impact is relatively low looking at the numbers.

Cuts to health and education are just weird. GST going up huh?

No action on business tax or high income tax :<<

Those were my rambling thoughts

[OutstandingInDivination]

Deregulation of university fees would likely not be the end of the world if they were keeping the HECS debt indexed rather than changing it. Free education would obviously be preferred but the changes to the payment system are worse than the changes to the fees.

are students who are currently enrolled in a course going to be affected by this? or is this only going to apply to students who are going t start uni next year or in 2016?

[magiconch]

Could someone please give some light/reassurance?  I deferred my five year Arts/Law course for next year. Will I be affected by these changes? Because if I am, I would simply start mid year this year

[Cappuccinos]

Could someone please give some light/reassurance?  I deferred my five year Arts/Law course for next year. Will I be affected by these changes? Because if I am, I would simply start mid year this year

"For students already studying, existing arrangements will remain until the end of 2020. This includes those who have commenced a course, or deferred commencement, on or before 13 May 2014" - http://www.budget.gov.au/2014-15/content/glossy/education/download/Budget_Glossy_education_web.pdf

So it sounds like your safe... I think.  The "From July 1 2016..." stuff is confusing me, I don't think it applies given that ^ statement but I don't want to give false hope hahaha

[brenden]

I'd start mid year in case you fail a subject/don't want to overload.
(And wow ty charmanderp I actually just assumed that would be the first thing they cut)

[charmanderp]

GP copay is fine. In practice it may very well turn out to be poorly devised but I don't object to the principle of it or the ideology. Nobody is entitled to free universal healthcare, it's just a thing we attempt to provide if possible. Many GPs will waive the fee for the disadvantaged, which is the reason they get a net $2 pay raise per patient. Making it $7 for each item means there are going to be some stupidly expensive visits if they include a script and pathology etc. Some number of new GP places though, which sort of makes it better?

I might agree with you here Russ if it was an actual necessity that people pay the fee. We're adding the copay which adds about $1.2bn to the budget but spending $22bn on defence, $5.5bn on the PPL and another billion or so dollars on asylum detention. Surely these other things could have been adjusted before we compromised our very robust and enviable universal healthcare scheme? I just don't understand why the first things attacked have been health and education, which should arguably be the most important cornerstones of any society.

Deficit levy is fine. Impact is relatively low looking at the numbers.

I have no issue with the fiscal aspect of the deficit levy. The impact like you've said is truly minimal.

The thing is though that this levy is really nothing more than a PR scam - it's been introduced to perpetuate this myth that having a deficit/debt of 10% of GDP is a bad thing (which, as stated by multiple leading global economists, shouldn't be a concern at all for Australia) just so that the government can justify their cuts by laying blame upon the Rudd/Gillard years. They've taken the option of introducing a tax and claiming it's a necessity so that people will start to panic, but the amount that the tax will raise is so minimal that it really doesn't upset those it applies to i.e. the richer percentages of our population.

[magiconch]

What a shame... If I start mid-year, I'd have to stay in the old structure (but have some leeway) but if I start next year, I would have to overload and make sure I pass all the units but I'd benefit from an updated structure and a "better" degree. Such hard decisions

[Professor Polonsky]

I might agree with you here Russ if it was an actual necessity that people pay the fee. We're adding the copay which adds about $1.2bn to the budget but spending $22bn on defence, $5.5bn on the PPL and another billion or so dollars on asylum detention. Surely these other things could have been adjusted before we compromised our very robust and enviable universal healthcare scheme? I just don't understand why the first things attacked have been health and education, which should arguably be the most important cornerstones of any society.

What makes you say that $22bn on defence could be cut? We're also one of the only countries in the world without a PPL scheme (even though Abbott's one is shit), why shouldn't we spend money on it?

[simpak]

"The FEE-HELP limit will be removed and there will be no limit on the amount of FEE-HELP and VET FEE‑HELP assistance that a student can access. This change will apply for all students from 1 January 2016."

WAIT - this is real thing?
Ie, when I apply for Med, I can definitely use my guaranteed entry card if necessary and not expect my mum to front me ~120k?
Or only if you're enrolling from 2016?  Like, could you start off in 2015 putting all your debt on HELP and then by 2016-2018 keep putting all of your debt on HELP because the start date for this new rule has passed?  Or do you still have a limit because you enrolled before Jan 1 2016...?

[kinslayer]

"The FEE-HELP limit will be removed and there will be no limit on the amount of FEE-HELP and VET FEE‑HELP assistance that a student can access. This change will apply for all students from 1 January 2016."

WAIT - this is real thing?
Ie, when I apply for Med, I can definitely use my guaranteed entry card if necessary and not expect my mum to front me ~120k?
Or only if you're enrolling from 2016?  Like, could you start off in 2015 putting all your debt on HELP and then by 2016-2018 keep putting all of your debt on HELP because the start date for this new rule has passed?  Or do you still have a limit because you enrolled before Jan 1 2016...?

The changes to HELP are separate to the changes to uni fees and the CSP share. The cap on FEE-HELP will be removed on Jan 1 2016 for everybody, so you can go nuts.