Budget a dismal failure for workers, education, hospitals and job creation

THE wealthiest one percent of Australian households will be breaking out the cigars in celebration at Budget 2016 according to economic experts.

The budget fosters in a lethal trifecta if you fall within the 75 per cent of households earning less than $80,000 per year.

It means underfunding for schools, cuts to hospital budgets and triples the budget deficit.

The budget, which  includes proposed cuts to income tax and a new work-for-the-dole scheme, will see the deficit figure blow out $3.4 billion to $37.1 billion next financial year, and remain in the red for four years.

High-income earners are the main beneficiaries under the tax cuts announced yesterday by Treasurer Scott Morrison.

And 70 per cent of taxpayers gain nothing from the shift in the point at which people begin paying 37 cents in the dollar tax.

Unions are furious ordinary working Australians are being ignored.

“The Turnbull Government today delivered a golden handshake to $100 million corporations and the top one per cent of income earners,” warns ACTU Ged Kearney who attended the budget lock up (pictured above) . “Working Australians are left even worse off.”

Ms Kearney warns the budget fails to offer a clear economic vision to generate jobs growth.

“The Government has failed to provide a credible jobs plan at a time when we have unemployment still higher than pre-GFC levels and two million people are underemployed or unemployed,” she says. “A corporate tax cut is not a jobs plan.”

Leading economic experts agree.

All the benefits go to people in the top 30 per cent of income earners, says Richard Dennis, chief economist at the Australia Institute.

“Scott Morrison and Mathias Cormann might not be smoking cigars tonight like Joe Hockey did so ill-advisedly after his budget, but the top one per cent will be.”

Ms Kearney criticised the lack of commitment on youth issues.

“This budget provides breadcrumbs for youth unemployment now in double digit figures – 12 per cent nationally and above 15 per cent in some local communities like the NSW Central Coast, parts of south-west Sydney, Townsville and all of South Australia.”

Under the Morrison/Turnbull plan, the top one per cent of income earners will get thousands of dollars in tax cuts and $100 million corporations get a massive tax cut in three years’ time.

Meanwhile, the ACTU points out $128 billion can be saved over the next decade.

Ending multinational tax avoidance, cutting generous tax deductions for the well-off, and introducing a flat minimum income tax rate for the most wealthy to ensure they pay at least some income tax are just some of the solutions offered in the ACTU’s recent economic plan.

“Tax evasion by big corporations plus tax loopholes that advantage the super-wealthy are fuelling inequality and costing our country billions,” says Ms Kearney.