My Budget Thoughts….
Ok, the budget is now out there, and there’s a lot of information in it for discussion. I was going to write down my thoughts about a week ago but decided it might be better to let people digest it a little more before sharing my thoughts. Now I do have an opinion on most of it and do apologise to those I offend but please feel free to make comments as you see fit.
Overall I must say I’m quite happy with the budget and the direction the government is heading. We can’t keep spending more money than we have otherwise our kids will inherit a massive debt problem. I think there’s too many people just living for today and not forecasting where the country is heading over the next 5 to 10yrs. How can they complain about spending cuts when we’re paying about $2.5 billion per year in interest on the $50 billion deficit the country currently has. The total net debt is expected to peak at about $280 billion. Imagine what we could do with the interest on this money in terms of assisting the community. Unfortunately this will mean some short term hurt but after that the economy will be a lot stronger and more stable.
When I meet with clients the first thing we look at and discuss is debt levels and good and bad debts. If there’s a debt we don’t get any income from, ie our national debt, then it’s the first thing we look at clearing. Imagine if you ran the family budget the way Labour has, and then expect your kids to sort it out once you’re gone!!
The only criticism I have is the attack on the elderly in terms of pensions. Any cuts to the age pension or those who are unable to work anymore is not a great decision. The issue I have with this is how do they go and get more money when they can’t work anymore? All those measures aimed at the younger generation may not be popular but at least these guys have time to make a difference in their lives.
The fuel levy of 1 cent per litre, how is this going to hurt the family budget? It might be about $1/wk difference if you use about 100 litres per week. I think this is a great idea if it’s going to assist in lowering the deficit.
In summary, I feel the Government is heading in the right direction and making some tough decisions on the way to try and achieve a stronger economy and therefore a much more prosperous future for our kids. If you have any questions about the budget, especially the first home saver account, or anything related to investment property then please email me through our website. Have a great weekend.