Two-thirds worry about the May budget

Two-thirds worry about the May budget

A CHOICE survey shows consumers are open to tax reform but oppose GST changes.

The findings are part of CHOICE’s latest nationally representative Consumer Pulse survey.

‘This is clearly an anxious time for Australian households, with last year’s Federal Budget casting a long shadow into 2015,’ says Alan Kirkland, CHOICE CEO.

‘Australians also understand the Federal Budget faces a revenue challenge, and the strong sentiment is that large businesses, including mining companies and banks, have a role to play,’ Mr Kirkland says.

CHOICE says the results show consumers are receptive to a comprehensive discussion about tax reform, looking across business, industry and individual tax arrangements, rather than a debate narrowly focused on the GST.

‘The clear message is that consumers are open to an informed debate about measures that are comprehensive and fair, not narrowly targeting household consumption.’

Two-thirds of Australians are concerned with how the looming Federal Budget might affect them.

Key findings

Two-thirds of Australians are concerned with how the looming Federal Budget might affect them.

‘There is majority support for limiting aged pension eligibility and superannuation tax benefits for the wealthy, while a sizeable minority of 45% want to wind-back the tax benefits of negative gearing,’ Mr Kirkland says.

‘Against this, moves to increase the rate of the GST are opposed by 60% of Australians, while an even greater number oppose broadening the base to healthcare, education and fresh food.’

Findings include:

  • 45% of households agree that long-term pressure on the Federal Budget requires action in the next five to 10 years
  • 22% believe we face an immediate ‘budget emergency’ and 17% want no action beyond business-as-usual
  • 73% of students are concerned about university fees
  • 75% of parents with children under five years are concerned about childcare fees
  • 30% say they are finding it difficult to get by on their present income
  • 27% say they are living comfortably on their current income
  • 21% say they live off a credit card to cover the gap until payday

The strongest support for increased spending is on the following:

  • hospitals – 62%
  • the aged pension – 47%
  • schools – 42%
  • pharmaceuticals – 37%
  • Medicare benefits for GP visits – 35%
  • roads – 35%

The top household cost-of-living concerns are:

  • electricity – top concern for the fourth consecutive quarter, now at 78%
  • food and groceries – 75%
  • fuel – 69%
  • health and medical including private health insurance – 69%