‘Class warfare’ Budget differentiates parties

19 MAY 2014

A "serious electoral gamble and unequivocal statement in the politics of class warfare" is how CSU political scientist Associate Professor Dominic O'Sullivan describes the Abbott government's first Budget.

A "serious electoral gamble and unequivocal statement in the politics of class warfare" is how Charles Sturt University (CSU) political scientist Associate Professor Dominic O'Sullivan describes the Abbott government's first Budget.

Associate Professor Dominic O'SullivanReviewing the Budget announcement and Opposition response, Professor O'Sullivan from CSU's School of Humanities and Social Sciences argues the cuts to welfare provide the biggest point of difference between the major parties since the Work Choices policy under the Howard government.

"The Budget presents a distinct position on the role of the state that signals a shift from more recent Liberal party philosophy and provides a stark contrast with other parties," he said. "It gives the ALP a very clear philosophical reference point from which to define itself as an alternative government."

Professor O'Sullivan said the Budget risks alienating John Howard's electorally significant 'battlers'.

"The Budget restores small government as a core Liberal party value and, with the exception of the paid parental leave scheme, firmly rejects the expansive middle-class welfare that distinguished the last Coalition government.

"The most striking illustration of the 'class warfare' that the Budget confirms is the removal of superannuation co-payments for people earning less than $37 000 a year, while retaining tax concessions benefiting workers in higher tax brackets, at annual cost of $32 billion, which well exceeds the sum to be cut from public spending."

Professor O'Sullivan said the spending cuts announced in the Budget will have an immediate effect on the hip pocket of real voters.

"It is the disproportionate impact on Howard's 'battlers', or Menzies' 'forgotten people' whose electoral significance those leaders understood, that makes this Budget a serious electoral gamble and unequivocal statement in the politics of 'class warfare'."

While he doesn't think a double-dissolution election is likely, Professor O'Sullivan wasn't surprised the Opposition Leader the Hon. Bill Shorten MP, threw down the gauntlet in his Budget reply speech.

"I can't see the Coalition Government winning an election just now, so I think there is likely to be compromise to get this Budget through the Senate.

"The Budget legislation's passage will pose particular difficulties for the government and there are already indications that the Medicare co-payments, fuel excise increases and, perhaps, even the deficit levy will not pass," he said.

"However, there's also cross-bench Senators who would be unlikely to be re-elected and they may support the Budget rather than force a poll."

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