Eden-Monaro MP Dr Peter Hendy says the Abbott Government’s first Budget lays the foundations for a "strong and prosperous economy with less debt".
In a media release issued on Tuesday night, Dr Hendy said the Budget was part of the Abbott Government’s Economic Action Strategy to build a strong, prosperous economy for a safe, secure Australia.
“At the election, the Coalition made the solemn promise to get the Budget back under control, as well as scrap the Carbon Tax, end the waste, stop the boats and build the roads of the 21st century. This Budget keeps that pledge," Dr Hendy said.
"The Government has made the difficult but necessary decisions to put the Budget on a more sustainable footing so that we can all share in prosperity in the future.
“We are all playing a part – because it’s in sharing the load that we lighten the load.
Dr Hendy said governments, like households, must live within their means.
Dr Hendy said the Budget included:
Australia’s biggest infrastructure programme - with $50 billion in transport investment by 2019-20;
Creating the world’s biggest medical research endowment fund - the $20 billion Medical Research Future Fund. It will find the cures of the future and be funded by the health reforms;
Requiring young people who can work to be earning, learning or participating in Work for the Dole;
Providing stronger incentives to businesses to hire older workers - businesses will receive up to $10,000 for employing workers older than 50;
Funding for additional road infrastructure by reintroducing twice-yearly indexation of fuel to CPI from 1 August 2014;
Providing Australian universities with the freedom to innovate through full deregulation;
Reforming the Age Pension to make it more sustainable – that includes gradually increasing the Age Pension age to 70 by 1 July 2035;
Freezing politicians’ pay and ending the life-time gold pass;
Changing family payments to target support to those who need it most; and
Introducing a three-year Temporary Budget Repair Levy – payable, from July, by individuals with a taxable income above $180,000 at a rate of two per cent. The Levy will ensure those on a higher income contribute to the Budget repair.
Dr Hendy said the Government was honouring its commitment to reduce the overall tax burden – so that families can plan their future and get ahead.
“Every year, the Carbon Tax is a $9 billion hit on the economy and it costs an average family $550. We will scrap the Carbon Tax," he said.
“Fewer than four per cent of taxpayers will pay the new Temporary Budget Repair Levy on high income earners making over $180,000."
The largest roads Budget in Australia's history would help families across Australia spend less time in traffic and will improve Australia’s productivity, he said.
“This record roads Budget will, in part, be funded by the change in fuel excise," Dr Hendy said.
"The change will cost about 40 cents a week, depending how far you travel. The increase in fuel excise will be directed towards road funding.
“The key goal of the Budget is to strengthen the economy – because when you strengthen the economy, small businesses succeed, families have less pressure on them and jobs are created.”