SPC News May 2016. Trick or treat: budget neglects struggle street.



With an election looming, Mr Morrison’s budget has tried to avoid antagonising voters, but has disappointed commentators with its failure to chart a path back to growth. It ended some excessive generosity to wealthy superannuants, but made further cuts to social services, shirked addressing the unfairness in capital gains tax and negative gearing, and did little for people under financial stress.

With most major tax reform possibilities taken off the table, the tax changes in the budget are mostly tinkering, rather than broad-based reform. The budget will be seen as ‘unfair’, since those earning less than $80,000 – some 75% of taxpayers – receive no tax cut, while some of the old cuts are carried forward, (welfare and family benefits, higher education, and vocational training). Promised childcare benefits have also been delayed.

The Andrews Government deserves recognition for its steadfast commitment to the extensive list of recommendations of the Royal Commission into family violence. However, the potential for this Royal Commission to be the promised groundbreaking paradigm shift now lies with those who are tasked with implementing those recommendations.

The Papua New Guinea (PNG) Supreme Court decision and the announcement by the PNG Prime Minister that Manus will be closed only bring forward the inevitable – the Australian government has to find a way to get the current caseload of refugees and asylum seekers out of PNG and Nauru. Realistically, the only option is Australia and New Zealand.

So, politics must triumph over budget reforms. This Budget will not engage seriously with needed tax reform. That’s too controversial, and anyway no government has ever been elected on the platform of tax reform (ie your paying more tax). Yet necessary nation-building projects in education, health, and infrastructure require more than current account or overdraft financing.

In the view of Paul O’Callaghan, CEO of Caritas Australia, Australia has “given up its shared leadership role in combatting poverty”, despite being one of the wealthiest OECD countries. Cuts to our aid have damaged Australia’s reputation internationally, and set back efforts to create an equitable and sustainable world in line with the UN Sustainable Development Goals.

The PNG Supreme Court decision has again thrown into stark relief the bankrupt nature of Australia’s asylum policy and the disingenuous way both sides justify their cynical and inhumane policies with trite slogans such as “saving lives” and “not starting up the people smuggling business”.

A YTU unit, Equity & Sustainability
The United Nations has led global efforts to eradicate hunger and extreme poverty, but crises in our economic systems and global warming have set back world development. With his 2015 document, Laudato Si’, Pope Francis has emerged as a new moral voice, mobilising opinion about urgently building a just world in which everyone can have reasonable life opportunities. He is urging collaboration among all peoples to address extreme inequality and care for the planet in a sustainable way.
Within the University of Divinity, Yarra Theological Union offers a 12-week unit relating the efforts of Pope Francis and other religious leaders to the ongoing initiatives to lift living standards in developing countries, reform global economic systems, and protect the environment to ensure a sustainable future.
For information, see the YTU handbook, or contact the Registrar
03 9890 3711, registrar@ytu.edu.au. See the flyer on this unit.
