As Lord Mayor of Brisbane, Campbell Newman decided not to charge ratepayers a flood levy to help with the recovery effort following the January 2011 floods, deciding to delay or scale back projects. He said
Delaying projects was not something we wanted to do, But it was the only responsible option if we couldn’t get the Federal Government to cover the massive cost of fixing things like ferry terminals and the riverwalk, so I thank them again for assisting the community in this way. Once the money begins to flow we will begin reinstating delayed projects, with our priority on getting our road and environment programs back on track. We will also be focussing on reinstating funding for suburban community initiatives.
Now it turns out that Mr Newman is the main advocate for a new tax to fund an NDIS. He even has the gall to cite the flood levy as an appropriate model. So we have the curious situation of a conservative premier proposing a new tax and a Labor PM rejecting a new tax.
Newman pointed out that the flood levy for Queensland, which had just expired, could simply be replaced by an NDIS levy.
Increasing the medicare levy by 0.5 percentage points is poor public policy. The medicare levy (which is on top of the top marginal tax rate and has quite a few exemptions) is a hit on income tax for which there is no reduction through tax deductions. It gives the impression to taxpayers that their medicare levy actually pays for health costs, when it covers less than 1/4 of health costs. Hypothecated taxes are generally inefficient because expenditure is not matched to the revenue and it provides inappropriate incentives for efficient management of a program. In the case of the medicare and so-called NDIS levies, it is worse since they are pseudo-hypothecated taxes – they appear to be for a specific purpose but in fact are just general revenue under a different label. In general the task of financing government expenditure should be held separate from the expenditure. It is the role of government within its fiscal strategy to produce balanced budgets – to raise revenue efficiently to meet the day-to-day expenditure of government.
Samuel,
He’s playing politics, pure and simple.
The great big new tax, would of course, be juliar’s and the electorate would know that.
Interestingly, Yabbott has stuck to the line that the productivity commission got it right. That is, fund it out of general revenue.
Rabz
28 Jul 12 at 7:29 am
Who knew Newman wanted to find new ways to fund the most wasteful Australian Federal Government ever?
I hope all he is doing is playing politics. Has he cut QLD taxes yet?
.
28 Jul 12 at 8:18 am
So new local hero, Can Do, is a big taxing conservative. Who would have guessed that!
You can’t rely on conservatives to actually reduce the size of government. At best they might slw the growth a bit.
johno
28 Jul 12 at 8:30 am
Johno,
You know this already.
http://catallaxyfiles.com/2012/07/28/open-forum-july-28-2012/comment-page-3/#comment-538922
Bloggie
The only solution is to cut spending and taxes to the billy-o and constitutionally enshrine it.
I think 15% of GDP is reasonable and semi socialist.
.
28 Jul 12 at 8:33 am
Politicians in this country are truly small. The mob that have got into Queensland are just as bad as the last lot, what with looking after family and mates, not following due process, and making intemperate decisions without a proper assessment of the benefits, checks and balances.
And to top it off, this mob haven’t worked out they are no longer in opposition, but are actually the government. They now own the problems, it isn’t someone else’s fault, be it the previous lot, or the poor saps in the public service. If they keep it up, eventually these arrogant tossers will start blaming the voters.
entropy
28 Jul 12 at 9:59 am
Can someone explain to me how/when this new “unmet need” showed/reared it’s ugly head?
This thing is supposed to cost around $8 billion. Recently there was the mental health funding which was supposed to be around $3 billion.
That’s around 1% of GDP. Where’s this money coming from?
Shame on the Libs. They ought to feel embarrassed at what they’ve hatched.
Forget libertarian philosophy for second, the ease with which billions are spent in the country is really starting to worry me.
JC
28 Jul 12 at 10:41 am
I think you’re falsely assuming he was serious.
He was, I’d suggest, giving Gillard a FU option he knew she was too gutless to pursue.
Don’t be an idiot.
C.L.
28 Jul 12 at 10:42 am
I am seeing it up close, CL. To say I am disappointed is a gross understatement.
entropy
28 Jul 12 at 10:47 am
I’m seeing it up close too and so far Newman is going great guns. Can he blow it by not using his unprecedented majority to effect fundamentally transforming political change – with an emphasis on free enterprise and cultural destruction of the left’s carcinogenic hold on institutions? Yes. But I’m not buying this purist hysteria that He’s Just Like Da Uvvers and it’s time to denouncingly denounce him. Calm down.
C.L.
28 Jul 12 at 11:04 am
I guess we will see.
Personally Newman should use this the six month mark to get rid of a few idiot Ministers who seem to attract trouble, and more importantly, the army of clueless, idiot advisers whose only qualification seems to be that mummy has the right friends or seem to have served out their best days as the cleaner in an electorate office for failed federal Ministers.
entropy
28 Jul 12 at 11:41 am
Newman is saddled with a few he cannot toss, like Flegg.
However, I’ve been pleasantly suprised by the performances to date of Springboard and Langbroek. Both have done very well. The A-G is kicking goals. And deputy sheriff is kicking industry along as well.
They didn’t meet all their goals inside first 100 days, and are suffering for being seen as “mean”, but so did Howard, and when the ship was righted, the meanness was but a distant memory.
I think once the PS job cuts are done, the budget is passed in September, and they get on with fixing other messes, confidence will go gangbusters. And boy do we need it!
On the issue of a levy, while it would be great to fund this out of consolidated revenue, all the governments are saying with what? Campbell makes the point that if we want new funding, it either takes even more cuts, or new revenue. He is saying the cuts he is making are needed to support recurrent funding and stop the debt going higher, so how is he supposed to shake the magic money tree, like Julia (new money she calls it hahaha) without going further into debt?
She is clueless.
pete m
28 Jul 12 at 12:32 pm
Let Gillard fund it with the loot she stole via QLDs GST revenue and the mining royalties/taxs.
QLD spends $920 mil on disability support this year and $3000 mil on dept repayments(servicing only).
CanDo will shell out when he has the shells.
Jumpnmcar
28 Jul 12 at 12:49 pm
Newman better deliver tax cuts. That’s all I’m saying.
.
28 Jul 12 at 12:50 pm
Maybe Newman is just making the point that if you want more government benefits that spend money you have to tax more to pay for them. I know this is a radical idea for some people and totally new to their experience.
Eyrie
28 Jul 12 at 1:00 pm
Look, I’m not prepared to give Newnamn or anyone any latitude on this. He said what he said and it quacks like a duck.
JC
28 Jul 12 at 1:03 pm
the Oz is reporting in breaking news:
I hope Newman doesn’t bow to the pressure, don’t know why NSW & Victoria did
val majkus
28 Jul 12 at 2:37 pm
Mr Newman is doing a great job, you guys here have really high expectations, hope he doesn’t bow to pressure. we’re in enough debt thanks to Missie Bligh.
candy
28 Jul 12 at 3:16 pm
candy, I agree, and I personally think Aust is in enough debt – the Govt should stop spending like there’s no tomorrow and start thinking about our kids and grandkids staggering not under the burden of climate change but this Govt’s cash splash habits
and I think Newman’s comments were aimed at getting NDIS off and running rather than it being limited to launch pads
val majkus
28 Jul 12 at 3:23 pm
I’m with CL on this; he was just playing politics knowing his ‘preferred’ option was a dead duck.
dover_beach
28 Jul 12 at 3:24 pm
Some facts, people.
The Productivity Commission Report notes that current funding for the provision of disability services in this country is around $7 billion pa – split between the Commonwealth and the States/Territories. Ultimately, the Commonwealth stumps up most of the recurrent annual funding.
The PC recommended an additional $6.5 billion pa, effectively doubling current funding, due to the unmet need (and yes, it does exist), so we’re now looking at around $13.5 billion pa. The current duplication of bureaucracy would cease and the States/Territories would be removed from involvement in policy, funding and administration of disability services provision.
The treasury’s latest guesstimates are an extra $8 billion pa is needed.
So now it becomes $14.5 billion pa.
If the Scheme is tightly fenced off, then there could be significant economic benefits as well as the obvious costs.
What I just love about this whole shemozzle is that laybore won’t (thankfully) get to implement the bloody thing.
However, they’ve put it out there, in front of a populace slavering for more gubberment largess, so when Yabbott rightly points out that the cost is somewhat prohibitive, guess what will happen?
Presstitutes and commies will be screaming blue murder about Yabbott personally denying gubberment granted ‘rights’ to kiddies with disabilities, etc.
I admire Yabbott’s and Mitch Fifield’s commitment to bipartisanship on this incredibly emotive issue. Unsurprisingly, I also deplore lardarse dullard’s typically inevitable incompetence in the handling of this matter.
But as usual, it’s a poison pill. The Coalition need to handle this with the utmost care (PTP).
However JC, you are very correct. The veritable glee with which our staggeringly stupid, incompetent and utterly wasteful politicians throw around billions of taxpayers’ dollars is an absolute disgrace.
Rabz
28 Jul 12 at 5:04 pm
All very well to support an NDIS, but please let’s first specify what constitutes a “disability.” I’m all for it if the scheme covers people with profound and lifelong physical and intellectual disabilities (and their carers), through birth or injury. But not the gravy-train passengers with bad backs, substance problems or PTSD/ADHD/emotional issues, who would be licking their lips at the possibilities.
mareeS
28 Jul 12 at 6:28 pm
Fund it out of overseas aid. Charity begins at home.
Splatacrobat
28 Jul 12 at 6:35 pm
Labor supporters will be the greatest beneficiaries out of this scheme as they are all cretins living in the sheltered workshop of shattered dreams.
Splatacrobat
28 Jul 12 at 6:40 pm
Something to do with Baillieu mailing his membership application to the wrong party and O’Farrell not having the balls to stand up to (or come down on) his own fuckwits and rejects (the AG, for one).
Also, unicameral Queensland is at a distinct advantage over the rest of the country.
Pipe dream: Queensland and Western Australia should annex the Northern Territory north of Alice Springs and secede. Inaugural President to be determined by coin flip; heads Newman, tails Barnett. All former Territorians to have no vote as they would write in Brutus the crocodile. I hate living in Darwin.
Supplice
28 Jul 12 at 8:18 pm
Those NT papers are always great for a laugh, at the populace and residents.
.
28 Jul 12 at 8:23 pm
Disclaimer: I’m a Queensland registered voter exiled to Darwin for work.
Supplice
28 Jul 12 at 8:25 pm
Supplice,
Exclude Tennant Creek. If you ever have a chance to visit, don’t take it.
Eyrie
29 Jul 12 at 10:03 am
When a politician says something unexpected those that are supporters claim to know the hidden meaning which is good or clever. Those that are not supporters claim to know the hidden meaning which is bad or stupid. Maybe he is just a fan of the NDIS and it matters more to him that lower taxes or small government. I don’t think he ever claimed to be a libertarian.
TerjeP
29 Jul 12 at 10:35 am
@supplice
The NT has it’s own particular problems and issues, as you would undoubtdly know from living here. But hey if you are unhappy here…vote with your feet and move on.
RE your pipe dream, of course as you know it was tried before, as the Northern Territory of South Australia, it is how we got our name, didnt work out so well; perhaps because the problems of the territory are either of the territory or have been imposed on the territory.
RE having no vote, well there is a couple hundred thousand of us and we do like to vote, in fact as of course you know we will be voting again very soon, on Territory issues.
@ Eyrie, I would be interested in hearing about your experienecs of living in tennant creek, did it take you long to form a negative opinion?
Xevram
29 Jul 12 at 11:21 am
I once made the mistake of staying overnight in Tennant Creek as part of a long road-trip with my young family. On a Thursday night. In fact, on a bi-weekly Thursday night, by happenstance, all because I wanted to photograph some granite balls at sunset, 200 odd km away, and didn’t want to risk a run to Alice with the family on board at night.
Fuck me. Going into town that night for a pizza has completely altered my children’s perception of (and sympathy for) the less well-off in our society.
Kaboom
29 Jul 12 at 5:19 pm
Hate to say it, but you can have the same experience in Alice too.
Entropy
29 Jul 12 at 5:24 pm
Yeah, I know. An incredible town, a magnificently beautiful countryside, a wonderland of nature.
Must see, but have some licenced protection,and don’t go out after 8:00 p.m.
Kaboom
29 Jul 12 at 5:48 pm
[...] Jay, writing at Catallaxy, notes that Queensland Premier Campbell Newman wants a new tax to pay for the NDIS through [...]
Campbell Newman’s great big new tax | Australian Taxpayers' Alliance
13 Aug 12 at 6:37 pm