Australia’s newest Federal Treasurer, Jim Chalmers, is putting a spotlight on the fiscal situation he’s just inherited from the Morrison government.
They all do it.
When new governments come to power in Australia, they inherit a budget from their political opponents.
So, they chuck it out and produce their own, to fund their own policy agenda.
But some incoming teams turn the event into political theatre.
In 2013, the Abbott government made a huge deal of the supposed unsustainability of the previous Labor government’s fiscal position, saying the country was facing a “debt and deficit disaster”.
When Gough Whitlam won the 1972 election, he asked a “taskforce” to review the previous Coalition government’s spending programs to see if any could be cut, so that he could fund his own policy priorities.
Jim Chalmers is already promised a thorough audit of the “waste and rorts” in Commonwealth grants programs, after the abuse of so many programs in recent years.
However, he’s also warning voters that the economy is in a more precarious situation than headline figures suggest.
Does he mean JobKeeper, and Jobseeker I wonder? Nah! I am sure he wouldn’t.
“The National Accounts are notoriously backward-looking,” so any government investigation is – well looking backwards, licking the finger, sticking it in the air and seeing which way the wind is blowing.
Inflation is higher – YEP, got that we have been aware of that for a while.
We’ve had an interest rate hike – YEP and most of us have had the sweet nothing letter from their finance company.
Petrol prices are up 12 per cent since the end of April – YEP picked that one up as we were refuelling on the way to buy an electric bike.
Wholesale electricity prices are up 237 per cent since the end of March – YEP so we are reconsidering the $5k tag for an electric bike
Gas is more than 300 per cent higher than the average of the last couple of years – yep, but locals must pay international prices for stuff we spent year giving away for bugger all.
We do have labour shortages. We do still have COVID absenteeism. And the international environment has become more challenging as well.
There is nothing new in what we are being told. So, what can we tell Your Business Angels clients?
What a review – check with your client coordinator for time to get our opinion on what your business could be charging.
Want a review, check with your client coordinator and we can review your business and personal budget.
If you have a big contract to quote on, ask your client coordinator to have us pass our eyes over it, if we have a concern we will refer you on to a lawyer to make sure you don’t get burnt.
There is no question we have hard times ahead. Having great business habits, working to win the right work all add up to a business that will survive thrive and move ahead. This incudes all our small clients who work just for themselves there are rewards for great product and skills and being “smart” about your business no matter how small.
