IT’S BUDGET TIME BABY! NSW’S THE WINNER!

Federal Budget May 2011 – Kearneys Financial Management ( This information has kindly been supplied thanks to Kearneys Financial Management)

For many it was hard to forgo Law & Order SVU & House to see how our economic year ahead’s going to pan out….so was it for richer or for poorer?  

WAYNE Swan’s promised “tough love” Budget did not eventuate, experts say – but tell that to an angry electorate.

Voters erupted in anger today when the Treasurer suggested those on a $150,00 income were “rich”. 

Today in Canberra, he stated he did not believe the $150,000 figure now represented a benchmark for “rich”.

“We are targeting our payments to families on modest incomes,” Mr Swan said.

“You raised the figure before – about $150,000 a year. I don’t believe those people are rich, but there are plenty of families on incomes of $60,000 or $70,000 a year.

“Families come in different shapes and sizes and with different incomes.

“What we do is pay generous benefits for families on modest incomes and it goes a long way up the income scale … but sometimes we have to tighten our belt a bit and that is what we are doing with family payments at the top end.”

Less than 10 per cent of people think they’ll be better off under the 2011 Budget, and around 80 per cent think the Treasurer got it wrong when trying to juggle the nation’s funds, according to polls on News Ltd websites.

More than 28,000 votes were cast in the polls.

Criticism from readers ranged across Budget provisions, including the decision to increase foreign aid to a record $4.8bn and stricter rules around unemployment benefits.

The decision to freeze indexation of family tax benefits, the baby bonus and the paid parental leave scheme for four years for families on $150,000 or more a year divided the nation, sparking anger among those who will be hit and a suck-it-up response from those earning less.

Typical of comments was from FUD of Queensland, who wrote: “You gripe at families earning over $150k … some of these familes (sic) are working more than 1 job to survive to educate kids and yes it is their choice but when you have to educate, cloth and feed them then you will understand…”

Chris of Canberra, who earns more than $150,000 a year, was also outraged.

“I do this by working hard, being away from my family (3 children under 7) and working incredibly long hours. I have paid to educate myself to ensure I can support my family. My wife does not work because we would have two kids in childcare and her whole wage would go on that. The Government continues to tax me more and means test everything so I am no longer eligible for benefits. If you work hard, are educated and successful this Government wants you to pay for their ineptitude.”

But Annoyed hit back, saying families earning $150 000 “shouldn’t really have a problem anyway.”

“I have a family and only earn $45 000! And I am sure there is plenty more in my boat that need the payments alot (sic) more than than the “middle” income earners.”

And Bobalong of Brisbane could “only dream about that sort of money”.

“Stop buying your $500,000 houses, your boats, your brand new cars and whatever else you buy to keep up with the Jones’ and you might be able to live very comfortably on $150,000 per year.”

Polls on News Limited websites asked:
• Did the Government get the 2011 Budget right. Of 3000 votes, 2500 said ‘no’.
• Will you be better off under the 2011 Budget. Of almost 22,000 votes, only 1600 said they would be.
• Where should more money have been spent. More than 3000 votes were cast, with health and tax cuts receiving the most support and welfare and defence the least.