Australia's projected annual deficits worsen by $7.5 billion

[webfact]

Australia's projected annual deficits worsen by $7.5 billion 
ROD McGUIRK, Associated Press

 

CANBERRA, Australia (AP) — Australia's projected budget deficits for the next four years have increased by 10.3 billion Australian dollars ($7.5 billion) to AU$94.9 billion as the economy continues to slow following a China-driven mining boom, the government's latest forecasts showed Monday.

 

The budget would return to surplus in 2020-21, despite falling revenue and a slowing economy, Treasurer Scott Morrison said.

 

"On the best information we have available to us, the government's plan to return the budget to balance is projected to be in 2021 and that is something that says our plan remains on track," Morrison told reporters.

 

The deficit for the year ending June 30, 2017, had been forecast to reach AU$37.1 billion when the annual budget was released in May.

 

Updated economic forecasts released Monday showed that deficit would be AU$600 million lower. But deficits will exceed the May estimates in the following three years.

 

Growth in the AU$1.7 trillion economy slowed to 2 percent for the current year from the 2.5 percent expected in May. Tax revenue was revised down AU$3.7 billion in the current year and AU$30.7 billion over four years.

 

Higher prices for iron ore and coal — Australia's biggest exports — would increase profits in the mining sector and increase the tax paid by mining companies, documents said.

 

"However this will be more than offset by the impact of weaker growth in aggregate wages and non-mining profits," the forecast said.

 

The government expects to save AU$10 billion by abandoning its Assets Recycling Fund which paid incentives to state governments to sell assets and used the money to build new infrastructure such as railways and ports.

 

Analysts say Australia risks losing its coveted triple-A credit rating by early 2017 due to the worsening economic outlook. Fewer than a dozen countries have a triple-A rating from Moody's Investors Service, Standard and Poor's Global Ratings and Fitch Ratings Inc.

 

The Australian Bureau of Statistics said earlier this month that the economy contracted by 0.5 percent from a year earlier in the September quarter, the first contraction since early 2011, to 1.8 percent.

 

Growth in the year through June had been 3.1 percent.

 

Morrison would not speculate on whether the December quarter would also contract, putting Australia in its first technical recession in 25 years.

 

-- © Associated Press 2016-12-19

[tezzainthailand]

Economic imbeciles.  The myth still pervades that the conservatives in Australia are economic wizards and its Labor opposition are inept money managers yet it was a Labor government under Rudd that sailed through the GFC and won plaudits from economists around the world.  This current mob has no idea, no plan to create work, too scared to confront the banks, happy to continue to look after the wealthy yet ready to dismantle the Union movement and continue its jihad on the unemployed and working poor to put them in an even worse financial state. 

[elgordo38]

4 hours ago, webfact said:

"On the best information we have available to us, the government's plan to return the budget to balance is projected to be in 2021 and that is something that says our plan remains on track," Morrison told reporters.

 

Step aside Thai forecasters we have a new champion. Its down for now but will go up or is it vis versa. Time for a brewski. 

[Jimbo2014]

And they plan to cut taxes on businesses - bananna republic again Mr. Keeting. 

[licka]

Let us hope the good people who voted for Turnbull open their eyes at the next election

Edited December 19, 2016 by licka

[TPI]

Australians seem to have a thing about electing people who know what they're doing, in every election they are offered any number of independent and center left candidates and every election they continue to vote for the failed major parties? Either "apathy is a problem but who cares" or it might interrupt the "footy"? Ozy voters need another "depression" to wake up to the existing pollies and their inept solutions to Australia's financial problems! Either that or hang one a week!

[tezzainthailand]

11 hours ago, TPI said:

Australians seem to have a thing about electing people who know what they're doing, in every election they are offered any number of independent and center left candidates and every election they continue to vote for the failed major parties? Either "apathy is a problem but who cares" or it might interrupt the "footy"? Ozy voters need another "depression" to wake up to the existing pollies and their inept solutions to Australia's financial problems! Either that or hang one a week!

Australian voters are lazy, simple as that.

[Johpa]

Not being an Aussie nor having followed your politics much over the past few decades (I do remember the scandals of the 1970s) I can't comment on the politics there. But I would like to point out that you have one the brighter lights in economics, Prof. Steve Keen, whose dynamic Minsky Model is convincing. Alas he has been awaiting an economic crash in his homeland for quite some time. He is one of the "renegade" economists who predicted the economic crisis of a decade ago.


Sent from my iPhone using Thaivisa Connect

[the guest]

That's what happens when you put all your eggs into the Chinese basket.

[elgordo38]

19 hours ago, Jimbo2014 said:

And they plan to cut taxes on businesses - bananna republic again Mr. Keeting. 

I have heard this story sooo many times in the past. Cut taxes for big business and they will hire more people blah blah blah but it never happens. They either increase their dividend or buy back stock with the money take their profits offshore and thumb their nose at the government. Governments owe their allegiance to big business. They owe you nothing. Your like a cash cow a little input in the front and then milk from the bottom which is sold for their profit not yours. 

[Pdaz]

How much tax revenue wasted on dole payments, social schemes, minority interests, politicians pensions and discussing gay marriage ?

[tezzainthailand]

17 hours ago, Pdaz said:

How much tax revenue wasted on dole payments, social schemes, minority interests, politicians pensions and discussing gay marriage ?

Dole payments are waste? Companies are bailed out all the time, corporate welfare, do you include that?.  The cost of NOT paying a payment to the unemployed is too much, ...homelessness, more crime (muggings, break-ins), more family breakdowns. The unemployed spend most of their dole payment, money back into the economy.  Politicians pensions and entitlements, you are right there,...far too generous.  $200 a night allowance to stay at your partner's home is not on.  Too much waste on offshore detention centres, far cheaper to process refugees onshore.  That's a start to reining in waste.

[Jimbo2014]

21 hours ago, elgordo38 said:

I have heard this story sooo many times in the past. Cut taxes for big business and they will hire more people blah blah blah but it never happens. They either increase their dividend or buy back stock with the money take their profits offshore and thumb their nose at the government. Governments owe their allegiance to big business. They owe you nothing. Your like a cash cow a little input in the front and then milk from the bottom which is sold for their profit not yours. 

 

Exactly and well said - trickle down economics is one huge lie.  Regan was the worst President of the USA and we dont want to copy their oligarch system

[Pdaz]

Processing reffos, that aren't even genuine refugees but economic migrants ? 

Meanwhile people who have applied for residency in the correct manner wait patiently for their application to be processed. Why should someone who purposely attempts to evade immigration laws and proceedures as well as paying criminal people smugglers even be considered ? Immediate deportation and a lifetime ban would be a far better deterrent than housing them for years in taxpayer funded camps. Would also give the bleeding hearts less to bleat about. 

Dole money was intended to help working people though tough times or to bridge the gap between employment. It has become a lifestyle decision for some. Families comprised of three generations of bludgers, nonevwho have ever worked. These same bludgers are often involved with crime, drugs and family violence. 

If they are to accept public money they should also accept that they must work for it. Mandatory "work for the dole" on civil infrastructure projects and neighborhood regeneration projects for the long term unemployed would leave them too tired to cause mischief. These layabouts and delinquents don't need handouts. They need structure, hard work and routine in lives. Laying on the couch boozing and smoking cones won't get them a job. 

I have to work and pay 48% of my income to support these people why can't they contribute to society ? Handouts and kid gloves have done nothing to improve this problem and havevonly made it worse. No dole in Thailand or anywhere else in Asia you don't see idle 'tards living on govt tit here....

[elgordo38]

4 hours ago, tezzainthailand said:

Companies are bailed out all the time, corporate welfare, do you include that?.  

After you bail them out they wave bye bye as they take your bailout and packup and leave for foreign shores leaving workers and their families with of course the welfare you mentioned which they should not be entitled. I get it now. These so called banks and corporations are nothing but hucksters on the highest order. If you have a TV watch it. Everyday on Channel Asia one of them is in the banner news at the bottom paying a huge fine for cheating you claiming no responsibility no jail time. Ah shucks they got caught while others did not. 

[elgordo38]

3 hours ago, Jimbo2014 said:

 Regan was the worst President of the USA

Wow so many thought he was almost like a rock star. He will soon loose his championship to the newly minted president in waiting. Little people you can put your baskets away money will not fall from heaven well not for you anyway. Can you picture a guy with a model wife, loads of money his billion dollar business, private jet fancy clothes and food is going to do a dam* thing for you the worker schmuck hardly. There is no Mother Theresa is this guy. 

[tezzainthailand]

3 hours ago, Pdaz said:

Processing reffos, that aren't even genuine refugees but economic migrants ? 

Meanwhile people who have applied for residency in the correct manner wait patiently for their application to be processed. Why should someone who purposely attempts to evade immigration laws and proceedures as well as paying criminal people smugglers even be considered ? Immediate deportation and a lifetime ban would be a far better deterrent than housing them for years in taxpayer funded camps. Would also give the bleeding hearts less to bleat about. 

Dole money was intended to help working people though tough times or to bridge the gap between employment. It has become a lifestyle decision for some. Families comprised of three generations of bludgers, nonevwho have ever worked. These same bludgers are often involved with crime, drugs and family violence. 

If they are to accept public money they should also accept that they must work for it. Mandatory "work for the dole" on civil infrastructure projects and neighborhood regeneration projects for the long term unemployed would leave them too tired to cause mischief. These layabouts and delinquents don't need handouts. They need structure, hard work and routine in lives. Laying on the couch boozing and smoking cones won't get them a job. 

I have to work and pay 48% of my income to support these people why can't they contribute to society ? Handouts and kid gloves have done nothing to improve this problem and havevonly made it worse. No dole in Thailand or anywhere else in Asia you don't see idle 'tards living on govt tit here....

There are 700,000 Australians out of work, most of them aren't slackers. There simply aren't enough jobs available in Australia.  I agree, there should be re-generation and infrastructure programs to get people back into full time work.  So why isn't the government doing that?  Because they have no idea.  They could have implemented a decent mining tax a few years ago, but the profits went offshore.  If they had a decent mining tax it could have funded an infrastructure program like a High Speed Rail network on the east coast...plenty of work for everyone and then you could have found out who the real dole bludgers are.

[elgordo38]

8 minutes ago, tezzainthailand said:

There are 700,000 Australians out of work, most of them aren't slackers. There simply aren't enough jobs available in Australia.  I agree, there should be re-generation and infrastructure programs to get people back into full time work.  So why isn't the government doing that?  Because they have no idea.  They could have implemented a decent mining tax a few years ago, but the profits went offshore.  If they had a decent mining tax it could have funded an infrastructure program like a High Speed Rail network on the east coast...plenty of work for everyone and then you could have found out who the real dole bludgers are.

Maybe Australia's richest lady who with Chinese friends just bought up 1% of Australia has some job openings. She is dead set against welfare. I am sure her wage offers will be the lowest in the country you do not get filthy rich paying decent wages and your fair share of taxes. Your lucky she is not running the country. 

Edited December 21, 2016 by elgordo38

[SaintLouisBlues]

12 minutes ago, elgordo38 said:

Maybe Australia's richest lady who with Chinese friends just bought up 1% of Australia has some job openings. She is dead set against welfare. I am sure her wage offers will be the lowest in the country you do not get filthy rich paying decent wages and your fair share of taxes. Your lucky she is not running the country. 

"Lady"?

[elgordo38]

1 minute ago, SaintLouisBlues said:

"Lady"?

List of Australians by net worth - Wikipedia

https://en.wikipedia.org/wiki/List_of_Australians_by_net_worth

1.  
2.  

Jump to Members of Australia's 50 Richest people - A list of the richest people in Australia is compiled by both Forbes Asia magazine and ...

‎Gina Rinehart · ‎Blair Parry-Okeden · ‎Harry Triguboff · ‎Anthony Pratt

 

Gina baby ranked number 1 in more ways than 1

[SaintLouisBlues]

8 minutes ago, elgordo38 said:

List of Australians by net worth - Wikipedia

https://en.wikipedia.org/wiki/List_of_Australians_by_net_worth

1.  
2.  

Jump to Members of Australia's 50 Richest people - A list of the richest people in Australia is compiled by both Forbes Asia magazine and ...

‎Gina Rinehart · ‎Blair Parry-Okeden · ‎Harry Triguboff · ‎Anthony Pratt

 

Gina baby ranked number 1 in more ways than 1

I don't doubt her gender

[Pdaz]

She's worth quite a lot even by the Kg.

[Pdaz]

Yes. This was a massive failure of Govt oversight. They failed to vet the companies responsible. Just another example of the huge wastage of Govt funds. Surely the Aust Govt must be raising more tax revenue now that at any other time in it's history. But safety culture and it's nanny state ideas has pushed up the cost of everything. Then there are countless schemes, quangos, charities and minority groups all clamering for funds to waste. Unfortunately nobody appears to responsible to confirm the cash is spent wisely.  The Govt's only answer is to increase taxation. Getting better value for money would be a better solution.

[Scott]

A post violating Fair Use Policy has been removed.   You may only quote the headline, 3 sentences and a link to the remainder of the source.   More than that is not permitted.  

[thaibeachlovers]

On 12/21/2016 at 1:21 PM, tezzainthailand said:

Dole payments are waste? Companies are bailed out all the time, corporate welfare, do you include that?.  The cost of NOT paying a payment to the unemployed is too much, ...homelessness, more crime (muggings, break-ins), more family breakdowns. The unemployed spend most of their dole payment, money back into the economy.  Politicians pensions and entitlements, you are right there,...far too generous.  $200 a night allowance to stay at your partner's home is not on.  Too much waste on offshore detention centres, far cheaper to process refugees onshore.  That's a start to reining in waste.

While it's probably not the thread to get into social issues, paying people to do nothing is the worst of all possible policies. Singapore paid no dole when it became independent, but it paid people to cut grass if no real work was available. Singapore stopped having riots. Perhaps not a direct result, but people working are usually not inclined to go out causing trouble.

By bribing people to vote for the political party with the biggest payouts for doing the least, western governments have brought many problems to their countries that could have been avoided.

[thaibeachlovers]

On 12/21/2016 at 6:44 PM, tezzainthailand said:

There are 700,000 Australians out of work, most of them aren't slackers. There simply aren't enough jobs available in Australia.  I agree, there should be re-generation and infrastructure programs to get people back into full time work.  So why isn't the government doing that?  Because they have no idea.  They could have implemented a decent mining tax a few years ago, but the profits went offshore.  If they had a decent mining tax it could have funded an infrastructure program like a High Speed Rail network on the east coast...plenty of work for everyone and then you could have found out who the real dole bludgers are.

If there are not enough jobs, why is the government allowing immigration, and not making it more difficult to have children? I have my viewpoint, but the language I would use would have this reply deleted.

If anyone thinks it's bad now, just wait till AI comes in and all means of production are automated! Australia will be lucky to have 700,000 actually working.

Yet, governments are ignoring it while it is already happening.

[Peterw42]

Maybe Australia is in a big hole now because previous governments didnt ride out the GFC, but choose to run around and prop up the economy.

The GFC was easy credit looking for non exsistant returns and the bubble burst. Governments, banks, business and people got weaned off easy credit. everything from inflation to housing bubbles to foreign debt adjusted back to more realistic levels. Normal boom bust cycles for economies. Every other economy in the world took the medicine.

The Rudd/Swann government, rather than ride out the bust cycle, chose to print money. propping up an economy overdue for an adjustment. A little like If I have a coffee shop and take money out of the till, walk around the counter and buy my own coffee, then tell everyone how well my coffee shop is going.

Lots of awards from banks etc as they all loved it. all the banks kept their AAA rating, easy credit to fund a false demand.

10 years after the GFC and Australia still has to ride out the GFC.

 

Then along comes the Gillard government. 

Australia doesnt make cars, washing machines, refrigerators or even shoes. We have little to no manufacturing industry.

And yet the Gillard government taxed the raw materials for manufacture and export (mining tax) and taxed the manufacturing process (carbon tax).

 

Maybe if we stopped living on cheap offshore credit and stopped taxing people who export or make things. Australia could climb out of the hole.

 

 

[elgordo38]

On 12/21/2016 at 0:52 PM, elgordo38 said:

Maybe Australia's richest lady who with Chinese friends just bought up 1% of Australia has some job openings. She is dead set against welfare. I am sure her wage offers will be the lowest in the country you do not get filthy rich paying decent wages and your fair share of taxes. Your lucky she is not running the country. 

Yes its a world wide phenomenon. The US has 100,000,000 able bodied people looking for work. Governments have no clue as to what to do. 

Edited December 24, 2016 by elgordo38

[thaibeachlovers]

3 hours ago, elgordo38 said:

Yes its a world wide phenomenon. The US has 100,000,000 able bodied people looking for work. Governments have no clue as to what to do. 

Yes, we are 2 billion people and increasing rapidly past the point at which having children should have been restricted, rather than encouraged as at present.

Given that they have never even tried to reduce population growth, IMO the world as we know it is doomed. Expect even more migration from poverty stricken countries to the west,even as western unemployment is set to skyrocket due to robotics, and when AI comes in, even the middle class will be toast.

If the Australian government even looks like easing up on refusing entry to illegal sea arrivals, expect to see thousands attempting the journey.

[elgordo38]

7 minutes ago, thaibeachlovers said:

Yes, we are 2 billion people and increasing rapidly past the point at which having children should have been restricted, rather than encouraged as at present.

Given that they have never even tried to reduce population growth, IMO the world as we know it is doomed. Expect even more migration from poverty stricken countries to the west,even as western unemployment is set to skyrocket due to robotics, and when AI comes in, even the middle class will be toast.

If the Australian government even looks like easing up on refusing entry to illegal sea arrivals, expect to see thousands attempting the journey.

Just checked Google we stand at 7.4 billion souls. The soul is slowly being squeezed out of this human body through fear and manipulation thus we are getting so many nut job politicians the list is endless. Yes the number of humans the planet can sustain is long past. Yes I agree the world is doomed there might be 40 to 50 years at best left. As we leave this mortal coil we can at least say we did it our way and not the way of big business well to some extent. Oligarths are everywhere in different shapes and sizes. After robotics and AI gain a foothold the common man will have no choice but to resort to extreme violence just for the basics of life food and shelter. I think we will live in a Terminator style world maybe with a bit of Running Man thrown in to placate the upper class. We will after all be the Expendables.