Buried in the footnotes

On 9 May 2017, the Treasurer directed that the maximum face value of CGS that can be on issue is $600 billion

That is footnote 3 on page 8 of section 7 of Budget Paper 1. Vital information like that should not be hidden in footnotes.

The Australian federal government has authorised itself to borrow six hundred thousand million dollars. On  current projections that figure is expected to rise to six hundred and forty nine thousand million dollars.

(HT: TA)

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48 Responses to Buried in the footnotes

  1. Tintarella di Luna

    Slimy government by slithering snakes.

  2. Tintarella di Luna

    Alan Jones — first comment was on exactly this item –

  3. Tel

    I presume there’s no way for the Senate to block that… but would be hilarious if they did.

  4. Senile Old Guy

    Slimy government by slithering snakes.

    This is being very generous.

    The LNP, under Turnbull, have abandoned all principles and are going for power at any cost: that cost being flushing our future prosperity down the drain.

    They are now worse than the ALP. Unbelievable.

  5. RobK

    Commonwealth Government Securities (CGS) A quick Google search and I was able to decipher the acronym by the time I got to page three. Sinc’s is the most important comment I’ve heard on the budget yet, after nearly going nuts listening to the talking heads on TV.

  6. min

    Well ar least when Labor get in next time they will not have any surpluses to spend as they will be left with the predicament LNP have been left in the past.
    Living within our means can someone ask PM or Treasurer Please Explain?

  7. Hans Llojdd

    I’m outraged at seniors having to downsize their real estate portfolios just to appease the Treasurer’s utopic idealism for a pension. These people have battled through a lifetime of Budgets and deserve a modicum of respect in later life.

  8. stackja

    EXPLANATORY STATEMENT
    Issued by the authority of the Treasurer
    Commonwealth Inscribed Stock Act 1911
    Direction relating to Commonwealth Borrowing
    General outline
    The Direction directs certain officials of the Australian Office of Financial Management, to whom the Treasurer’s powers under section 3A of the Commonwealth Inscribed Stock Act 1911 (CIS Act) have been delegated (delegates), as to the purposes for which the Commonwealth may borrow and the maximum total face value of Commonwealth Government Securities (CGS) that may be on issue.
    Legislative authority and date of effect
    The Treasurer, acting under section 51JA of the CIS Act, signed the Direction on 9 May 2017. The Direction will commence on 10 May 2017.
    Background
    Subsection 51JA(2) of the CIS Act requires the Treasurer to issue a Direction that specifies the maximum total face value of CGS that may be on issue under the CIS Act and the Loans Securities Act 1919. The former Treasurer’s Direction of 11 December 2013 limited the maximum total face value of CGS on issue to $500 billion. This Direction increases this maximum to $600 billion.
    A maximum total face value of CGS on issue of $600 billion provides headroom to finance government operations and provides certainty to financial markets that the Government will be able to issue additional debt.
    Subsection 51JA(3) of the CIS Act provides that delegates must comply with a direction in force under s 51JA(2) and any other direction given, by signed instrument, to the delegate by the Treasurer.
    Details of the Direction
    The Direction revokes the former Treasurer’s Direction made on 11 December 2013 and limits the maximum total face value of CGS that may be on issue to $600 billion.
    The Direction also directs that the Commonwealth may borrow money to meet budgetary needs, and for policy purposes.
    Consultation
    This Direction will have no direct or substantial indirect effect on business or restrict competition. Accordingly, there was no formal public consultation process in the drafting of this Direction.
    Status of Direction
    This Direction is not subject to disallowance or sunsetting under the Legislation Act 2003. Authorised Version Explanatory Statement registered 09/05/2017 to F2017L00513

  9. Baldrick

    This little Twitter exchange sums things up quite nicely:

    Peter Phelps MLC ✔ @PeterPhelpsMLC
    Budget 2017
    O M F G
    Taxes up; spending up; lots of SJW rhetoric.
    What is the difference between this and a Labor Budget?

    Matt Bevan ✔ @MatthewBevan
    Replying to @PeterPhelpsMLC
    broad church mate

    Peter Phelps MLC ✔ @PeterPhelpsMLC
    Replying to @MatthewBevan
    It’s a church, not a brothel

  10. What does “HT:TA” refer to?

    “Tip o’ the hat to Tony Abbott… ? ”

    Interesting…

    If it’s The Australian… well, that’s not nearly as fun.

  11. stackja

    Federal Budget 2017: Terry McCrann says Budget a dangerous disgrace
    Terry McCrann, Herald Sun
    May 9, 2017 8:12pm

    Subscriber only

    PETA Credlin was exactly right. This is a budget for the next Newspoll.

    It is not the budget that should follow an election win, even a narrow win. That’s when you are supposed to take the tough decisions. This is the budget version of “fake news” — “fake fiscal frugality.”

    It is not a budget from a Liberal treasurer. It increases taxes big-time. And even that’s not been done to slash the deficit, but to fund even more spending, off its already high base.

    Most importantly — and dangerously ——of all, it is not a budget for our volatile, ultimately unpredictable, times.

    And the debt keeps rising, to over $600 billion gross, $375 billion net — even on these optimistic numbers. It is in sum, a dangerous disgrace.

  12. Motelier

    When I, our Trust, or any members of the public borrow money, there is a plan put in place to repay that money.

    $600 000 000 000 has to be paid back sometime. What fool in what lending institution would lend that money?

    My poor descendants.

  13. Tel

    I’m outraged at seniors having to downsize their real estate portfolios just to appease the Treasurer’s utopic idealism for a pension. These people have battled through a lifetime of Budgets and deserve a modicum of respect in later life.

    I dunno, if I ever get the opportunity to apply the same asset testing to Turnbull’s pension I certainly wouldn’t be held back by any deep feelings of respect. Goes around comes around as the Buddhists say.

  14. Candy

    Spending to get Newspoll up . Mr Turnbull did try innovation , then Federalism changes, all worthy policies but not communicated successfully, now LNP are Labor copycats which will probably work, then SSM to complete things.

  15. will

    When I, our Trust, or any members of the public borrow money, there is a plan put in place to repay that money.

    $600 000 000 000 has to be paid back sometime.

    Not really. The government can just keep rolling it over. It is just that the interest payments are a bugger.

  16. Rabz

    On current projections that figure is expected to rise to six hundred and forty nine thousand million dollars.

    By the time labor have been at it for a couple of years it will have hit a $trillion. I can’t wait to see Rat Face Bowen waving that kind of figure away as being of no consequence.

  17. john constantine

    It is all in balance and funded, as soon as their shorten foundation can cash in all that wasted money locked up in super, it is all systems go.

  18. H B Bear

    The borrowing limit should only be able to be changed by legislation. Front up to the people in Parliament and say we cannot manage our Budget and are impoverishing future Australians by loading them up with more debt.

    It should be on the front page not buried in the footnotes.

  19. Senile Old Guy

    ABC:

    Another significant target of this budget? Bill Shorten, who will find it difficult to construct a spirited denunciation of a document — large tracts of which could pretty much have been written, at various points in the past five years, by the Labor Party.

    Says it all, really.

  20. Roger

    Bloody hell; I go to bed in a constitutional monarchy and wake up in a banana republic.

    There’s only Eric Abetz standing between us and Venezuela!

  21. Driftforge

    “This Direction will have no direct or substantial indirect effect on business or restrict competition. Accordingly, there was no formal public consultation process in the drafting of this Direction.”

    Hahahahaha

  22. Leo G

    At least one major super and pension fund (Colonial First State) has now announced that it will commence charging an annual “Regulatory Reform Fee” on the holders of their accounts for holders who have any non-suspended account balance of more than $5,000.
    Note that this is a charge on the account holder, with the same fee applied to each person, regardless of the amount invested (provided it exceeds $5,000) or the number of accounts held by the person.

  23. Ubique

    Is the treasurer to be Wayne Morrison or Scott Swan?

  24. Ubique

    ASIO, the Federal Police and the Fraud Squad need to be called in to get to the bottom of how Turnbull and Morrison managed to steal Electricity Bill Shorten’s alternative Federal Budget and present it as their own.

  25. Ubique

    Kevin Turnbull and Wayne Morrison.

  26. H B Bear

    Could be the shortest Budget reply speech ever by Peanut Head,

    “Mr Speaker, I endorse this Budget.”

  27. teddy bear

    And to think I was worried about a shorten government.

    If I had any doubts about my decision not to vote for the coalition last election those are gone for good now.

  28. Senile Old Guy

    If I had any doubts about my decision not to vote for the coalition last election those are gone for good now.

    I had no doubt last time. Neither did many others in my electorate, as a consequence the local member is now ALP. The LNP member was one of those kicked out following the elevation of the despised one.

  29. Hasbeen

    You’d have to say this is an eat, drink & be merry right now. Tomorrow may be too late.

  30. Tintarella di Luna

    Bloody hell; I go to bed in a constitutional monarchy and wake up in a banana republic.

    Excellent comment Roger – may I pinch it with attribution?

  31. Crossout

    We need a balanced budget amendment to the constitution to take this out of their hands.

  32. teddy bear

    SOG the only real doubt I had last election was my vote for a minor party ending up somewhere I didn’t want it due to preferences or the like, our local candidate was labour anyway so only my senate vote was going to make a difference.

  33. Rafe

    What is Chinese policy on asylum seekers from Australia?

  34. Dr Faustus

    By the time labor have been at it for a couple of years it will have hit a $trillion. I can’t wait to see Rat Face Bowen waving that kind of figure away as being of no consequence.

    You will have that chance.

    Bowen was on AM this morning claiming to be delighted that the Government had finally woken up to the ‘fact’ that “borrowing is not a bad thing“. Wayne ‘Yesterday’s Man’ Swan was on ABC612 yesterday claiming that Australia can carry up to $1 trillion net debt – and with low interest rates, more debt is the only responsible way to go.

    The ALP will have the Australian economy in the ditch within two terms, all the while explaining that the previous Coalition Government would have done exactly the same if they could – except that Turnbull/Morrison were eunuch hostages to the Far Right.

  35. Dr Fred Lenin

    The more these career pollies stuff our country up,the more attractive my idea of limiting pollies to one term in a lifetime. None of the present maggots deserve even one still one term would limit the damage they can do , especially if they are not allowed to pass a law without consent by referenda or allowed to spend one dollar of public funds without that consent They oay their own super while in office and recieve limited allowances ,also not allowed to give wives and family or lovers jobs in their offices ,a department supplies staff and pays them ,be a good way of keeping tabs on the bastards. Tge oresent lot would lose all family wealth to compensate for the damage they have done They wouldnt need money in jail for life +

  36. will

    Bloody hell; I go to bed in a constitutional monarchy and wake up in a banana republic.

    Australia will shortenly be Greece without the weather or idyllic scenery, or the Germans to bail us out.

  37. Combine Dave

    Potential greatness?

  38. Robber Baron

    Cory Bernardi has been vindicated in his move to desert these “conservative” charlatans in the Liberal Party. This is exactly how the Tea party began. Australia is only one or two political cycles behind the USA. We will get our Trump; we just need our Obama first to make socialism so distasteful that we will turn to anyone but the established parties for our savior. Latham is beating a drum…

  39. teddy bear

    will the Germans didn’t bail Greece out, they simply ensured that Greece was able to continue paying interest on it’s loans for all eternity.

    Countries defaulting would be very bad for those who hold it’s debt, much easier to cancel a bit of it or better still get the IMF or other stupid nations to pay off some of it.

    Wonder how much Australian money made its way from what we stupidly gave the IMF to ensuring Greece is able to keep paying interest.

  40. John Michelmore

    “Bloody hell; I go to bed in a constitutional monarchy and wake up in a banana republic.”

    I thought we were in a parliamentary democracy; the monarchy and the constitution no longer count, do they? Politicians found ways around these things years ago with corporate government.

    I won’t however debate that its a banana republic.

  41. gbees

    “The Government has responded strongly to calls for a banking Royal Commission with a series of tough measures for the sector. A new levy on big banks will raise $6.2bn for Budget repair and banking directors are also captured in a new ‘Banking Executive Accountability Regime’. This gives APRA expanded oversight of directors and executives and introduces increased civil and criminal penalties. “

    It’s a pity there isn’t a “Politician Executive Accountability Regime”. Some of the decisions these people make resulting in massive financial disasters for Australian people should require said politicians to spend some time in jail.

  42. Squirrel

    “The Australian federal government has authorised itself to borrow six hundred thousand million dollars. On current projections that figure is expected to rise to six hundred and forty nine thousand million dollars.”

    After today’s performance at the National Press Club, expect the total to keep on climbing, and climbing and climbing- lots of lovely gee whiz, matey, blokey, dinky-di wishful thinking. The international financial markets will doubtless be delighted to go on funding this entitlement circus ad infinitum.

  43. Dr Fred Lenin

    Take ALL power from politicians make them have referenda on all their actions with a 75 percent yes bote before any law is oassed ,limit terms to one year with a maximum three terms , then compulsory retirement from politics for life with no oension or super payments from the taxpayer .
    . Limit bribes. Sorry donations to parties to $10 per person or organisation per year with huge fines and long jailterms for breaches of this law . We have to get these bastards under control they are starting to behave like EU commisars ,cut them off at the ankles before we end up slaves of the u.n.communists one world unelected dictatorship.

  44. Mark M

    PRIME MINISTER:
    The banks are the most profitable banks in the word, $32 billion in profits.
    They benefit from the implicit support of the government, that is a major benefit that they have.

    https://www.pm.gov.au/media/2017-05-10/interview-michael-rowland-abc-news-breakfast

    Unspun:
    1. banks most profitable in world
    2. because … supported by tax payers
    3. fairness says they must pay (there fore, taxpayers must pay as they implicitly support them)
    4. Banks pass new charges on to customers (taxpayers who are forced to use them)
    5. Banks make bigger profits.
    6. see 1.

  45. Rayvic

    Have not noticed any new-technology coal-fired power stations in the infrastructure wish list or buried in the footnotes. With the banks unwilling to lend for new efficient, reliable, low-cost, baseload coal-fired power stations, how long will it take for expected power blackouts to cause the pollies to have nightmares?

  46. RobK

    how long will it take for expected power blackouts to cause the pollies to have nightmares?
    Unfortunately the increasing cost of electricity under the present policy may see the “demand destruction” by way of fleeing industry and subsidized self-generation stall the inevitable for a while, a couple more coal plants down and the game is pretty much up. A scramble for gas is already on to fill the void but it won’t pull the price down. To a large extent the damage is done thanks to the insidious RET. 12-24 months and there will be nowhere to hide the obvious.

  47. Tel

    Unspun:
    1. banks most profitable in world
    2. because … supported by tax payers
    3. fairness says they must pay (there fore, taxpayers must pay as they implicitly support them)
    4. Banks pass new charges on to customers (taxpayers who are forced to use them)
    5. Banks make bigger profits.
    6. see 1.

    Yes, but you miss the most important point here. Corporations are automatons, creatures made of paper. They don’t pay tax, they don’t consume, they simply operate.

    The purpose of the government supported banking cartel is to be both a tax collector and a tax inspector at the same time. This is simply yet another indirect tax imposed on Australians who use banking services (which, as you say, is compulsory since the tax office refuses to deal in cash, but I think on the whole business will pay the most, probably hitting small business proportionally harder). Being able to play the “fairness” card is simply a way of jiggering Bill Shorten’s narrative and having a quiet chuckle at low information ALP voters at the same time. Then doing the finger wagging shtick and telling banks not to pass on the fees is pure vaudeville.

  48. RobK

    The RET is working as designed; we will have a lower CO2 emission from the power grid. The price to pay will have a significant impact on GDP. I don’t think they have factored that in the forecast.

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