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Is it just like your household budget? Now we are a little over a month on from the latest Budget released by the Morrison government (and closing in on an election), we thought we’d take a lighter look at the Federal Budget, now and in the past.
The Federal Budget is basically the government’s way of laying down their policy priorities each year. It’s a big deal usually as it sets out how they will spend money (to keep their election promises) while also forecasting the state of the economy over the next four years with considerations in changes to legislation, taxation and the like. Although it’s an important part of the political landscape in our country, it seems we have all come to tolerate the fair serving of political theatre that comes with it.
Maybe theatre is a bit rich but, we should remember, the Budget is the treasurer’s chance to take centre stage without the prime minister getting in their way. The treasurer delivers the speech live – Keating pioneered this in 1984 and it has since stuck – followed by a series of post-budget interviews. It becomes a bit of a media circus. The opposition then attempts to gather media attention for themselves with their own “budget in reply” speech two days later.
Here’s some moments worth remembering …
The one pounder:
In 1941 the federal opposition (led by John Curtin), moved to reduce the budget by 1 pound (!) and convinced the independent MPs to side with him. The result was the House rejecting the government’s plans in an effective vote of no confidence (over 1 pound!) and Curtin was sworn in as prime minister four days later.
Wiped one year on
During his second stint as treasurer, Arthur Fadden had a bolt of light in the middle of the night for a wool tax. The closest thing he could grab to document his idea was toilet paper. The tax was included in the1950 budget but repealed one year later thanks to how unpopular it was.
“Lies, Lies, Lies!”
You might recall hearing this yelled by politicians over the years, but it’s most famously documented as being a headline in a 1979 edition of the Illawarra Mercury newspaper. The headline came after then treasurer, John Howard, broke his promise to end a short-term tax levy during that year’s budget announcement. The catch cry, “Lies, lies, lies!” was then repeated constantly by the Labor opposition during debates that followed. It’s semi-stuck and can be heard now and then echoing the halls of parliament house.
Leaky in ’80
Big time political journalist Laurie Oakes was leaked JohnHoward’s entire 1980 budget before it was delivered. Oakes revealed in 2017that a contact handed him Howard’s budget speech in a car park, giving him 15minutes to “gabble the whole lot into a tape recorder”. As you can imagine, this left room for Oakes to build quite a budget story for the media by the time the announcement came around.
All it takes is a few words
To help illustrate the “political theatre” point, here’s are minder of some killer one liners that’ve come from budget announcements.
Take Paul Keating’s triumphant 1988 budget announcement that boasted a healthy surplus while being the first to be delivered in the newParliament House. He declared his budget was “Bringing home the bacon” after years of tough economic reform.
Remember the baby bonus? The Baby Bonus Scheme initially granted $2,500 in tax cuts per year for parents of newborns, an amount which was amended to lump-sum payments of $3,000from 1 July 2004. Well, in 2004 Peter Costello introduced it, urgingAustralian’s to “have one for mum, one for dad and one for the country”!
Amongst everything, it’s important to remember that although the budget is a serious tool with serious outcomes for our country, there is fun to be had when you start to look through its history. We encourage you to take a light look at your own budget, it could just help you look at it in away that inspires some kind of change you’d otherwise not have thought of.
If you’re looking for advice or strategy for your personal or business budget, the Attune team is perfectly placed to help you build a roadmap to reach your financial goals. Give us a call on 1300 866 113 or send us an email to begin the conversation.
