Senate to block budget, again

The early positive reaction to the budget is fast dissipating, and the senate now is setting itself to block key budget measures again. Honestly, how many times does the senate have to say no before this gov listens?

Significant elements of the budget may be blocked in the Senate as their hidden and long-term impacts become clearer, despite its generally positive reception. 

The initially well-received pension changes – which save $2.4bn over four years – are under serious threat because the government has now ruled out any reform to costly superannuation tax breaks. 

The plan to force under 25-year-olds to wait four weeks for unemployment benefits appears certain to be voted down and the $5.5bn in cuts to single income family payments remain in doubt despite the Coalition’s insistence that they are necessary to pay for its generous new childcare package. The plan to save almost $1bn by ending so-called “double-dipping” for paid parental leave seems almost certain to be defeated. 

The budget, which abandoned many of last year’s cuts and delivered $5bn in small business tax breaks, has delivered a quick boost in both consumer confidence and the Coalition’s standing in the opinion polls. 

But as parliament prepares to return for four weeks of sittings before the long winter recess, details are emerging about the impact of some of its central policies. more