‘Although the budget contained many worthwhile measures, in practical terms it “produced confidence-sapping political deadlock,” writes former Treasury economist Stephen Anthony, the chief forecaster at Macroeconomics. “The real problem with the first Hockey Budget is that it is seen as unfair. It imposes too much of the adjustment burden on the disadvantaged rather than wealthy Australians who would benefit most from a resurgent economy driven by structural budget repairs. The Treasurer should focus on a few major savings battles that are worth winning and abandon the rest which are political death by 1000 cuts”.
“Any savings shortfall can be funded by winding back superannuation concessions.” Dr Anthony says the Treasurer could make up for all of the measures blocked in the Senate by taxing all super contributions at the taxpayer’s marginal tax rate.(Sydney Morning Herald, 11.11.14)