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Federal budget

Great News for Home Buyers and the Economy

Tanya PlibersekThe doubling of the First Home Owners Grant and the tripling of the grant for those building new homes are expected to provide an immediate stimulus for new housing and help restore business confidence across the sector.

I am very pleased to report that the Prime Minister and the Treasurer have recently announced a $1.5 billion boost to confidence in the housing market in Australia.

First home buyers who are purchasing newly constructed properties will see the value of the First Home Owner Grant triple from $7,000 to $21,000 for newly constructed homes.

It is a very significant new investment. People who are purchasing existing homes will see the value of their First Home Owner Grant double from $7,000 to $14,000. These increased payments are effective immediately and will be available on all contracts entered into between now and 30 June 2009.

While our housing market has not seen the turbulence of overseas markets, lending finance for owner occupied housing did fall by 2.1 per cent in August against July and the number of dwelling units approved in August fell by 3.7 per cent against July, seasonally adjusted.

Closing the Gap Between Rudd's rhetoric on Indigenous Australians and budget commitments

Rachel Siewert

Simply throwing money at an issue doesn't get you anywhere if you don't have a plan. 

The level of spending committed to Indigenous disadvantage in the budget barely sets the Government on the right road to delivering on the Government's election promise to actually ‘close the gap'. Despite the rhetoric from the Government on closing the gap and their signing on to the pledge to deliver equality of access to services within a decade, the commitment of resources in the 2008 budget does not boost funding nearly enough to achieve this target.

The Government commitment amounts to additional expenditure of around $250 million per year across the entire Indigenous budget (that is, $1.2 Billion in new money over 5 years). But the biggest chunk of that ($666 Million) will be eaten up feeding the NT intervention juggernaut. This is a small percentage of the $450 million needed each year to simply catch up on Indigenous health alone, and a far cry from what is really needed to fix the problem.

Stuck in the coal age, when the solar century has already begun

Christine MilneBy Christine Milne

If climate change were prioritised by Government the way Defence is prioritised, the vision of an energy efficient Australia powered completely by renewable energy by 2020 would be entirely within our grasp.

Martin Ferguson, let the cat out of the bag shortly after the Budget, when he said that carbon capture and storage would be "essential for the long-term sustainability of coal-fired power generation." With those words, he betrayed the fact that his government prioritises the coal sector's profits over climate protection.

If that seems like a long bow to draw, look at the evidence that the Budget presents.

In the vital area of commercialisation of technologies, the myriad of renewable energy options that are ready to roll out now were allocated precisely zero for the coming year, with only $125 million in this term of government. Next to that, the pipedream that is ‘clean coal' received $35 million this year and $250 million this term.

A comprehensive national feed-in law

Tim HolloBy Tim Hollo

A new Bill by Greens Senator Christine Milne advocates greater financial support for the commercialisation of renewable energy technologies.

Against the backdrop of several appalling Rudd Government Budget decisions that will undermine the renewables industry in Australia even further (some of which are detailed here), Christine Milne introduced a Private Member's Bill in the Senate this morning to establish an comprehensive national feed-in law.

Feed-in laws support the rapid and unlimited growth of the renewables sector by giving certainty to investors, guaranteeing them a market at a set price.

The climate Budget betrayal

Christine MilneBy Christine Milne

Tuesday night's Budget was a slap in the face for all those Australians who voted for the Labor Party at the last election in the belief that a new government would be willing and able to make Australia a true global climate leader.

From the day he took leadership of the Labor Party, Kevin Rudd worked hard to present himself in contradistinction to John Howard on climate change. Climate was, more than anything else, supposed to be symbolic of the generational change from Howard to Rudd. My warnings at the time, that the Rudd Opposition had not fully digested the science, did not understand what was required, and was not offering well-thought out policy alternatives, did not fit into that narrative and were largely ignored. Hate to say it, but ...

The sorry state of our economy

StephenWilson's picture

Who do you get from business -- which captain of industry -- to enlighten us about the budget?

Here’s proof positive of the malaise that besets our once-clever country. In the lead-up to the budget last Monday, ABC radio’s “The World Today” interviewed just one senior business identity for their view on what the economy needed from the government. It was Gerry Harvey.

In a progressive, innovative, competitive country – like Malaysia, Singapore, Taiwan, Ireland or Finland perhaps – you’d expect to hear from CEOs in smart, export-oriented industries, such as biotech, energy, IT or communications. But in Australia, the most influential magnate we have is a consumer goods retailer. Isn't it really pathetic that a country's economy can be so dominated by the retail sector? No wonder the chief economic policy lever in Australia is the blunt instrument of interest rates.

And to add insult to injury for those of us who wish we were cleverer, when interest rates are hiked to slow things down, the Gerry Harveys of the world proudly proclaim it's not making any difference to them. Nope, sales just keep on keep rising!