Australian Federal Political Issues Report
Australian Federal Political Issues Report
Issue
Report Top 5 Federal Issues
Federal Budget
WAYNE Swan has moved to entrench Labor's stamp on the nation beyond a predicted election defeat and set a political time‐bomb for Tony Abbott, embedding signature policies on education, disability and infrastructure in the budget but paying for them with cuts explicitly opposed by the Coalition. The Treasurer last night laid out a challenge to the Opposition Leader to accept Labor's agenda, as he outlined tax and savings measures that will fund the government's agenda for the next decade, and which largely take effect beyond the next two years. In a pre‐election budget devoid of handouts and electoral sweeteners, Mr Swan has hit families, universities, the corporate sector, doctors and smokers, gambling that the appeal of the government's education and disability
Federal Budget
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Press
Radio
Television
Internet
Total
2,256
21,503
16,708
25,006
65,473
National Disability Insurance Scheme
561
4,268
5,112
7,322
17,263
Government cuts to foreign aid
147
2,522
1,955
3,325
7,949
Local government referendum
341
1,535
219
5,192
7,287
Coalition releases IR policy
187
1,341
854
2,312
4,694
reforms will overshadow spending cuts and tax hikes. One of the last vestiges of the Howard era ‐ the Baby Bonus for new parents has been axed in a budget that promises $43 billion of cuts over the next four years as a down payment on $300bn in savings to fund Labor's school reform agenda and the national disability insurance scheme, DisabilityCare. Last year's promised surplus for the 2012‐13 financial year will instead be a deficit of $19.4bn, improving to $18bn in 2013‐14. The budget is predicted to return to balance with an $800m surplus in 2015‐16 and produce a surplus of $6.6bn in 2016‐17. Net debt is set to peak at $19.6bn in 2014‐15 or 11.4 per cent of gross domestic product, the highest since 1998‐99. Gross debt will rise to
$282bn by June next year, raising the prospect of a new row over the government being forced to lift the debt ceiling from the current level of $300bn. … (The Australian, May 15) Shadow treasurer Joe Hockey has warned his frontbench colleagues that the Coalition must consider passing the savings and tax increases in Tuesday's federal budget, raising the likelihood that the opposition could support most measures, including the abolition of the Howard government's baby bonus. As the government spent Wednesday stepping up pressure on the Coalition to back the $43 billion in savings and tax measures, The Australian Financial Review learned that Mr Hockey had issued the warning at a shadow
Australian Federal Political Issues Report cabinet meeting on Monday, on the eve of the budget. Senior sources said Mr Hockey told shadow cabinet "there will be some savings measures that we don't like that we will have to cop". "We may not like them but we may have to keep them. We can't save the country from opposition," he was quoted as saying of expected government measures. Mr Hockey mentioned there would most probably be cuts to Howard government initiatives, but did not specify the baby bonus. Mr Hockey, who must find the sayings to pay for the Coalitions election promises, is, like a growing number of his colleagues, of the view that the Coalition could pocket the savings contained in the budget while Labor bears the blame. It would also thwart Labor’s plans to wedge the Coalition between now and the election by demanding it pass measures which will help fund the national disability insurance scheme and the Gonski school funding reforms. On Thursday, before Opposition Leader Tony Abbott delivers his budget‐in‐reply speech, the government will release figures claiming that if the opposition does not support key decisions in the budget, it will be $50 billion in deficit
over the forward estimates. … (Australian Financial Review, May 16)
worth $43 billion over five years, attention had turned to what Tony Abbott would do. There's been a lot of that kind of questioning lately, which tells you all you need to know about the expectation of a change of government now more‐or‐less built‐in to most people's thinking. In these strange times, policy and politics have become further entangled than is normally the case. It was only a couple of weeks ago that Julia Gillard and her Treasurer had unsuccessfully applied a pincer movement on Abbott over a proposed extension of the Medicare levy to pay for DisabilityCare. Now, in their “last roll of the dice” budget, they were at it again trying to turn their two key weaknesses, the minority Parliament and a big deficit, into strengths, by using Abbott's momentum against him. … (Mark Kenny, The Age)
Trap. Wedge. Trick. Ploy. All these words have been used to describe Wayne Swan's latest federal budget. To many observers, it was all too obvious: an outgoing Labor government was laying booby traps for an incoming Coalition outfit. But if there is a trap for Tony Abbott, it is no sleeper. Budget 2013 is a reversal of the normal order of things: the backdrop of the event has commanded almost more attention than the action on stage. That backdrop is a government apparently limping towards the exit, humiliated by its failure to deliver a surplus that it had itself stipulated as the only true test of its prowess, and an opposition setting itself for victory, unified to a fault, and doggedly wedded to populist contradictory political fixes, such as its “direct action” climate change plan, and the unsustainable forward march of middle‐class welfare. Even before Swan had finished speaking in the House of Representatives on budget night, outlining a raft of tough savings measures
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National Disability Insurance Scheme
DRESSED in charcoal black, a new Julia Gillard revealed herself yesterday. Not the “real” Julia of the 2010 election campaign, or the self‐described “hard bastard”
Australian Federal Political Issues Report of Australian politics. A softer Julia, tears welling while introducing the bill that will increase the Medicare levy from 1.5 to 2 per cent to fund the national disability insurance scheme. “I have seen the hope and anticipation which Australians with disability, particularly young Australians, now share,” the Prime Minister said in a hushed voice, which quivered with emotion. The plight of disabled children Sandy Anderson, 17, and Sophie Deane, 12, who Ms Gillard recently met had triggered her tears. Fiona Anderson, whose son Sandy suffers from a condition similar to cerebral palsy, said she was glad Ms Gillard and other MPs were touched. “They have done a wonderful thing,” Ms Anderson said. “We've spent over $500,000 on four wheelchairs, therapies, early interventions. “With this scheme there is light at the end of the tunnel . . . Sandy will be able to go to university, go out, get a wheelchair and get it repaired.” Ms Gillard met 12‐year‐old Sophie, who has Down syndrome, when Victoria signed on to scheme earlier this month.
Her mother Kirsten Deane, the deputy national campaign director of Every Australian Counts, has been lobbying for a disability insurance scheme since 2009. Like the Andersons, the Deane family has received no help from government programs in the past. “What it (the scheme) does for our family is deal with that constant knot in the pit of our stomach, wondering what will happen when we're no longer around,” Ms Deane said. … (Daily Telegraph, May 16) JULIA Gillard broke down in parliament yesterday as she invoked the story of 12‐year‐ old Sophie Deane, who has Down syndrome, while introducing legislation to part‐fund the "transformational' disability insurance scheme. The half percentage point rise in the Medicare levy, which would raise more than $30 billion over the next decade and fund part of the landmark DisabilityCare scheme, was a matter of bipartisan support. And while that in itself was a rare moment, it was recalling a thank you card that brought tears to Ms Gillard.
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The card featured a photo of Ms Gillard taken by Sophie and signed by others including 17‐year‐old Sandi, who is in a wheelchair. "DisabilityCare starts in seven weeks time and there will be no turning back," she said. The opposition benches were largely empty while the Prime Minister made the emotional speech, but she was greeted with applause by her colleagues and about 20 disability advocates. Opposition families and human services spokesman Kevin Andrews said that, as the Coalition fully supported the measure, it was a pleasure to formally move that the debate be adjourned. Advocates and sector groups largely applaud the full funding plan for the scheme in the budget, and yesterday's levy bills, commending both sides of parliament for putting disability front and centre. People with Disability Australia president Craig Wallace said it was one policy that really deserved respect. … (The Australian, May 16) An emotional Julia Gillard wept in Parliament on Wednesday as she introduced the bill that will help fund her government's DisabilityCare scheme.
Australian Federal Political Issues Report The Prime Minister was moved to tears as she recalled receiving a thank you card made by 17‐year‐old Sandy Anderson, a young man with a physical disability she met in Brisbane as Queensland Premier Campbell Newman signed on to the scheme. The card, which had been signed by Sandy and his friends, featured a photo of Ms Gillard taken by Sophie Deane, a 12‐year‐old Victorian girl with Down Syndrome that she had met in Melbourne when Premier Dennis Napthine signed his state up to the scheme. "Sandy has big dreams for his future, like any teenager, but his future also has some big needs: mobility aids that cost tens of thousands of dollars, personal care to maintain his hygiene, physical therapy to maintain his muscles and his health," Ms Gillard told the House. “In years to come, DisabilityCare Australia will ensure Sophie and Sandy and so many other young people with disability will have the security and dignity every Australian deserves.” The bill, which increases the Medicare levy by half a percentage point from July 1, 2014, will help the federal government's $19.3 billion contribution to the scheme over the next seven years from 2012‐13. The Prime Minister
has championed the national disability insurance scheme as a signature Labor reform on a par with Medicare. “Over the past six years, the idea of a national disability insurance scheme has found a place in our nation's heart,” Ms Gillard said. … (Financial Review, May 16) Government cuts to foreign aid About 150,000 Australians who are unemployed or sole parents are tipped to benefit when Tuesday's budget increases the amount they can earn without losing benefits. In a gesture to critics urging that the unemployment benefit be lifted by $50 a week, Treasurer Wayne Swan will announce that people on the dole or equivalent benefits will be allowed to earn $100 a fortnight before their benefit is reduced, up from $62 a fortnight now. It is the first time in a decade that the income‐free area has been lifted, as Liberal and Labor governments have chosen to let the dole sink well below the poverty line. Mr Swan will promise that the income limit will be indexed in future but will reject calls from churches, welfare groups, unions, Labor
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MPs and even business leaders to lift the dole itself. Labor fears lifting the dole would lead to a backlash from voters who think the unemployed are ripping off taxpayers. But the government is also under electoral pressure after its rule changes pushed 80,000 single parents from the more generous parenting payment onto the dole, cutting their incomes by a third. … In addition, the budget is set to boost money for overseas aid by $500 million but will once again divert hundreds of millions of aid dollars to cover the rising cost of asylum seekers. It is understood foreign aid will rise from $5.2 billion to a record $5.7 billion. But in the face of the intense budgetary pressure, the government will continue to raid the aid budget to help cover the growing cost of processing and housing asylum seekers, who are expected to arrive by boat in record numbers this year. In December Foreign Affairs Minister Bob Carr announced the government was funnelling up to $375 million of foreign aid towards asylum‐seeker costs or about 7 per cent of the aid budget in the 2012‐13 financial
Australian Federal Political Issues Report year. It is expected to divert at least the same amount again this year. A record number, 17,202, asylum seekers arrived by boat last year and the figure this year is expected to be higher. A promise to open a new embassy in Senegal ‐ which helped to deliver African votes in Australia's United Nations Security Council victory ‐ will be put on the back burner as part of the planned cuts. The Australian embassy in Budapest will also be closed, saving $1 million and casting doubt on a deal in which the Hungarian embassy in Syria helps any Australians caught in the war. … (Sydney Morning Herald, May 13) THE aid sector and the Coalition have condemned Labor's decision to again delay its foreign aid spending target, warning the move will cost lives and see more money diverted to cover domestic asylum‐seeker costs. Foreign Minister Bob Carr yesterday confirmed Australia's target of allocating 0.5 per cent of gross national income to aid spending would be deferred by another year to 2017‐18, following a dramatic $17 billion write‐down in budget revenue. Senator Carr said Labor was still increasing the aid budget by $500 million,
lifting it from $5.2bn to approximately $ 5.7bn in 2013‐14, taking it to 0.37 per cent of gross national income. The decision means Australia will increase its aid spend by more than $1bn a year from 2015‐16 to 2017‐18 when it is forecast to hit $9.47bn, reaching the 0.5 per cent target. Senator Carr also confirmed the amount of aid money deferred to cover in‐house asylum‐ seeker costs would be capped at $375m for the 2013‐14 financial year. World Vision Australia chief Tim Costello said the delayed spending target was "deeply disappointing" and Australia could have saved a further million lives if the target had not been delayed. "It's good that they are saying that they're not going to hollow more out, but the extra $500m is largely replacing what they've (already) hollowed out," he said. The government confirmed the diversion of $375m from the aid budget last December to cover asylum‐seeker costs, Senator Carr saying the move was consistent with OECD guidelines. Executive director of the Australian Council for International Development Marc Purcell said aid should not be diverted at all to asylum‐ seeker costs.
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The move brought condemnation from the opposition, which said further raids on the aid budget to fund asylum‐seekers were certain, given the number of arrivals. However, while it supported an increase in overseas aid, it would not commit to a timetable until it had seen the "true state of the budget". (The Australian, May 14) Foreign Minister Bob Carr says there will be no more job cuts for the Department of Foreign Affairs and Trade in the budget but defended a delay to foreign aid spending as inevitable. Senator Carr's comments came after The Australian Financial Review exclusively revealed on Monday the government would shift another $375 million from the foreign aid budget to support the onshore processing of asylum seekers. The move, along with the government's decision for the second year in a row to delay reaching its foreign aid spending target of 0.5 per cent of gross national income, was condemned by the Coalition and aid groups. Opposition deputy leader and Foreign Affairs spokeswoman Julie Bishop vowed an Abbott government would not resort to raiding the aid
Australian Federal Political Issues Report
budget to support onshore processing of asylum seekers. Analysts have called for a decade of cuts by both the Howard government and the Gillard government to the diplomatic service to be reversed given it is now represented on the United Nations Security Council and faces a heavy and growing consular workload. But Senator Carr ruled out more cuts and said the budget would include spending on new and upgraded diplomatic posts. He confirmed Australia would lift its aid spending by $500 million to $5.7 billion this year but admitted the goal of achieving 0.5 per cent of GNI would be delayed to 2016‐17. Senator Carr said that as minister he had argued against the spending shift. Ms Bishop said the governments decision to raid the aid budget to support onshore processing was "entirely inappropriate". … (Financial Review, May 14) Local government referendum Tony Abbott will seek to head off an internal brawl in the Coalition over the referendum on the constitutional recognition of local government by requesting his MPs to play
dead on the issue once the referendum is established. But the early signs were not good for Mr Abbott, with MPs on both sides of the argument vowing to speak out and confusion reigning over whether the Coalition already had an official position of supporting the “Yes” case, as Mr Abbott claimed. With the internal opinion sharply divided over the issue, Mr Abbott believes the referendum, announced last week to coincide with the September 14 election, was more about wedging the Coalition than a genuine desire for constitutional change. The government and other proponents, including the Nationals and some Liberals, argue the change is necessary to prevent a High Court challenge to the Commonwealth's already‐established practice of bypassing states and funding local governments for such projects as local roads and community facilities. Although the Coalition party room will discuss the issue on Tuesday, Mr Abbott said on Monday the Coalition's official position would be that established when Malcolm Turnbull was leader and that was to support the recognition of local government.
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Local Government Minister Anthony Albanese said Friday that Mr Abbott had told him privately the Coalition would back the change. The shadow ministry discussed the matter on Monday after being given a copy of the proposed referendum question. Parliament must pass legislation to establish the referendum and in order for there to be public funding for a "No" case, someone must oppose the legislation. Mr Abbott announced that a handful of his MPs who opposed the change would be allowed to cross the floor to establish the "No" case, but after that he wanted discipline. It is understood he is keen to avoid a repeat of the 1999 republic referendum in which the Coalition MPs were allowed to advocate either side and ended up fighting publicly. Mr Abbott said the election must be first and foremost a referendum on the Gillard government. “We have some reservations about it because we think that the government hasn't done the work necessary to get a Yes vote. It is rushing this through in the lee of an election," he said. … (Financial Review, May 14)
Australian Federal Political Issues Report People do not regularly get a chance to safeguard a secure funding future for their communities, but on September 14, opportunity will come knocking for Queensland voters. In today's world, debates over public funding often and rightfully turn on the question of value for money, and there is one funding relationship that has a proven track record of responding to community concerns quickly and efficiently. Provided a local community can make a good case, the relationship between local councils and the Federal Government is such that a funding solution out of Canberra can usually be found for a project that might otherwise starve for a lack of money to feed it. Those solutions range from money to build housing for disabled people to funding towards multibillion‐dollar infrastructure projects, such as the Brisbane City Council's Legacy Way tunnel. Yet this means of ensuring such projects become a reality is under threat simply because local government does not rate a mention in the Australian Constitution. The Constitution is the enduring document that has helped shape this nation into one of
the most admired democracies in the world. Yet recent High Court decisions have shown that, without a small amendment to the Constitution, funding problems may occur for those local community projects that rely on Commonwealth money. That amendment would confirm the funding relationship between the federal and local governments, allowing the flow of Commonwealth funds to local projects without fear that a High Court challenge would shut off the tap. It is a simple change but it would be no empty gesture; it would give local councils a rock solid base on which to plan for improving and maintaining the lifestyles and economic futures of their communities. It would legitimise and make secure the important relationship between the federal and local governments, thereby ensuring the efficient flow of public funds to support programs such as Roads to Recovery and various direct community grants. … (Cr Margaret de Wit, QLGA president, The Courier‐Mail, May 15) The Napthine government is opposing constitutional recognition of local government,
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to be voted on at a referendum to be held alongside the federal election on September 14. Minister for Local Government Jeanette Powell said there was a strong possibility that local councils would be left worse off if the referendum passed, and it amounted to more power being transferred from state governments to the Commonwealth. “Changes to the Australian constitution could blur the roles and responsibilities between the three tiers of government, leading to poorer overall outcomes for our communities,” she said. The referendum will ask voters whether local government should have financial recognition in the constitution. If successful it would guarantee the federal government's ability to directly fund local government projects, such as childcare and sports grounds. Municipal Association of Victoria president Bill McArthur accused the Napthine government of scaremongering. Mr McArthur said the referendum sought a modest change to guarantee the direct funding relationship between federal and local
Australian Federal Political Issues Report
government that had occurred for more than 10 years. In Tuesday's budget, the government committed $50 million to conducting the referendum. (The Age, May 16)
Coalition MPs and employer groups said they were too cautious. Mr Abbott's plan also includes cutting back union access to workplaces, making the right to strike the final option, bringing back the coercive building industry watchdog and making dodgy union officials face the same penalties as dodgy business leaders. He also vowed not to touch unfair dismissal laws and penalty rates. “There won't be another WorkChoices ‐ it is dead, buried and cremated,” Mr Abbott said. But he left open the option for bigger changes, saying there would be a Productivity Commission inquiry into workplace laws but any plans would have to pass the “pub test” and he would first seek a mandate at the election due in 2016. … (Herald Sun, May 10)
Coalition releases IR policy TONY Abbott says he will make it easier for employees to make individual arrangements but any deal must pass a “better‐off test”. With the Coalition still scarred by the WorkChoices policy that helped defeat the Howard government, the Opposition Leader unveiled an industrial relations policy that he insisted was “sensible, careful, prudent and incremental”. Mr Abbott promised not to reintroduce the Australia Workplace Agreements that were at the centre o f WorkChoices, but said more people would be able to choose the Individual Flexibility Arrangements, which already exist. He said the only “substantial change” was expanding the availability of the IFAs, but he said bosses could not make them a condition of employment. Unions and the Government blasted Mr Abbott's long‐awaited policy while some
The business community has accused Tony Abbott of squibbing on his industrial relations policy by adopting a go‐lightly approach to avoid a union scare campaign. The Opposition Leader, who famously declared the Howard government's reviled WorkChoices regime "dead, buried and cremated" in the 2010 election campaign, said
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no one but "dodgy union officials" should fear the coalition's approach on IR. Though the Fair Work Act would be retained and unfair dismissal laws unchanged, the coalition would tighten unions' access to workplaces, reinstate the Australian Building and Construction Commission and establish a Registered Organisations Commission as union watchdog. The coalition does not propose reintroducing Australian Workplace Agreements but would end Labor's restriction of its so‐called individual flexibility arrangements from being offered to workers on enterprise agreements. And a coalition government would require negotiations for greenfield agreements on new projects to be finalised within three months. If not, the Fair Work Commission would be asked to adjudicate. Any more ambitious IR changes would be left until after the 2016 election, when the coalition would seek a mandate for changes proposed by a Productivity Commission review. "What this policy promises are sensible, careful, prudent, collegial changes to a system," Mr Abbott said.
Australian Federal Political Issues Report
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Despite Mr Abbott's caution, the Government said the coalition could not be trusted on workplace relations. "Tony Abbott's extreme workplace relations policies should send a shiver up the spine of every Australian worker," Workplace Relations Minister Bill Shorten said. The Australian Chamber of Commerce and Industry said the coalition's policy was "too modest" and that the lack of support for individual workplace agreements was a "serious disappointment" to the non‐union sector. The Australian Industry Group said the coalition's changes were sensible but overly cautious and re‐stated its opposition to the coalition's paid parental leave scheme which would impose a "significant cost burden on employers". (West Australian, May 10) TONY Abbott says he will make it easier for employees to make individual arrangements, but any deal must pass a better‐off test''. With the Coalition still scarred by the WorkChoices policy that helped defeat the Howard government, the Opposition Leader unveiled an industrial relations policy that he
insisted was “sensible, careful, prudent and incremental”. Mr Abbott promised not to reintroduce the Australia Workplace Agreements that were at the centre of WorkChoices, but said that under a Coalition government more people would be able to choose Individual Flexibility Arrangements, which already exist. He said the only “substantial change” would be expanding the availability of IFAs, but bosses would not be able to make them a condition of employment. Unions and the Government blasted Mr Abbott's long‐awaited policy, while some Coalition MPs and employer groups said they were too cautious. His plan also includes cutting back union access to workplaces, making strikes the final option, bringing back the coercive building industry watchdog and making dodgy union officials face the same penalties as dodgy business leaders. He also vowed not to touch unfair dismissal laws and penalty rates. … (The Advertiser, May 10) *****
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