Australian Prime Minister Malcolm Turnbull.
Australian Prime Minister Malcolm Turnbull. JOEL CARRETT

2017 budget: have our MPs been listening?

RUMOURS of a rift between the Prime Minister and Treasurer emerged in the weeks leading up to the budget.

Was Malcolm Turnbull pushing Scott Morrison to the side? Had the PM lost faith with one of his highest profile MPs?

But now, with the budget just around the corner, it is ScoMo's time to shine.

More importantly, it is time to find out if the government has listened to us.

Between the first Turnbull budget in May last year and the election in July last year, regional newspapers across the country launched the Fair Go campaign. We called for more money to be spent in regional areas and highlighted the discrepancies between those living in capital cities versus those living outside them.

The statistics show on average regional Australians live shorter lives, they have poorer access to health care, fewer education opportunities and higher unemployment.

This budget is the first chance to see if the government, and our MPs, heard us.

CYCLONE RECOVERY

For many people, after Cyclone Debbie hammered much of regional Queensland and left northern NSW under water, that investment is even more important.

In late April, Mr Turnbull and Queensland Premier Annastacia Palaszczuk announced $14.7 million of disaster relief funding.

But with the storm's damage still being so keenly felt, more money is expected to be listed for cyclone recovery.

This could range from help rebuilding broken roads and other infrastructure, to increased tourism funding.

Recovery will likely be a major expense in the coming Queensland and NSW government budgets as well - but more than $1 billion is likely to come from federal disaster recovery funds.

INFRASTRUCTURE

Infrastructure is set to play a big part of the budget, with the government already committing to expanding the Snowy Mountains Hydro in Victoria.

Last month Mr Morrison announced the budget would change the way debt for infrastructure was listed.

Like New Zealand and Canada, the budget will now highlight the "net-operating balance" so as to not include borrowings for infrastructure.

Mr Morrison ruled borrowing money to fund investments like infrastructure was "good debt" but borrowings to fund day-to-day expenses was "bad debt".

Opposition leader Bill Shorten said the changes were an admission the government had to change the rules to get debt under control. But Labor would not rule out adopting the proposal itself.

The change is expected to pre-empt an increase in infrastructure spending in the budget. Along with the hydro expansion that could include funding Brisbane's Cross River Rail project and the Inland Rail project.

JOBS AND HOUSING

Housing affordability is also set to be a major feature of the budget. If you live in Sydney, where median house prices are about $1 million, or in Melbourne, where it is not far behind, it's easy to see why that's a concern.

But the price of houses is less of an issue in other parts of the country.

The issue stopping regional Queenslanders buying a home is not the price - but getting a job to pay it off.

Unemployment has sky-rocketed in much of regional Australia since the mining boom ended. The Australian Bureau of Statistics listed the national unemployment rate at 5.9% in March.

At the same time, regional Queensland's unemployment rate sat at 7%. And that number is even higher for young people living outside the capital cities.

MINING

But creating regional jobs has been no easy feat for governments. Adani's proposed Carmichael mega coal mine in central Queensland has been met with long-running court challenges.

Although the mine has strong public support in central Queensland, the proposal has faced myriad protests in capital cities.

Adani has also struggled for investors, with all four major Australian banks, and numerous international banks, ruling out funding the mine.

The Indian company has applied for $1 billion in government funding to build a rail line from the mine to port.

It is competing with Aurizon, which has its own proposal for the rail line.

Since the 2016 budget the market price of commodities like coal and iron ore has skyrocketed - providing a boost to government coffers.

But can the Treasury count on the rebounded prices to stay high?

Coal's price collapse after the boom had a major impact on government revenue and, to keep ratings agencies happy, the Treasury might project commodity prices conservatively.

IMMIGRATION

One already announced reform will be the changes to skilled immigration. The government has announced the current skilled migrant visa, called a 457 visa, will be discontinued and a new program begun.

The controversial 457 visa program was used to let businesses bring skilled workers into Australia. But critics claimed it was being abused and keeping local workers out of jobs.

The budget is expected to introduce new funding for training programs to help businesses upskill Australian workers.

Mr Turnbull said the changes would prioritise "Australian jobs" and "Australian workers".

EDUCATION

The Prime Minister dropped a bombshell in the lead-up to the budget - he was taking one of Labor's key policy planks for himself.

Calling for the implementation of David Gonski's 2011 report about school funding has been one of Labor's strongest attacks on the Coalition since the Abbott Government defunded the final years of the reforms.

But, with Mr Gonski at his side, Mr Turnbull announced the "Gonski 2.0" school funding program that would increase school funding by $18.6 billion over a decade. Although, some schools will get less money than they were otherwise set to receive. Mr Gonski will also conduct a new review into the education sector.

The budget should reveal more details on the funding program - at least until the new review is completed.

WHAT ELSE?

Then there are the budget classics. Topics almost every government tries to hit in a budget: things like help for small business or assistance to middle income families.

Some budgets are filled with unannounced surprises. Other have the big issues announced or leaked beforehand - and we won't know the full details until Tuesday.

WHAT DO WE ALREADY KNOW?

LEAKS and big announcements normally pre-empt the Federal Budget.

But this year Prime Minister Malcolm Turnbull's government has been surprisingly quiet in the lead up to their biggest day of the year.

So far this is what we know is will be in the 2017 budget:

* An additional $18.9 billion for schools after the government's adoption of the Gonksi Review recommendations.

* University students will have to pay back their HECS debt sooner with the repayment threshold being dropped to $42,000 in earnings.

* Housing affordability package in response to overheating property markets in Sydney and Melbourne.

* The government is also expected to implement penalties for foreign investors who leave properties they own unoccupied.

* New infrastructure funding. An expansion of the Snowy Mountains Hydro Scheme and money for the second Sydney airport have already been announced. The government will change the way infrastructure debt is listed in the budget.

* Assistance for businesses to train and upskill employees is expected to be expanded in response to the government's reforms to the skilled worker visa program.

ARM NEWSDESK



WARNING: Hail, heavy rain and winds to lash Warwick

Premium Content WARNING: Hail, heavy rain and winds to lash Warwick

Wild weather is predicted to continue well into this afternoon.

Killarney’s fight to save beloved health service

Premium Content Killarney’s fight to save beloved health service

KMAC has turned to crowdfunding after unparalleled stressors in 2020. FIND OUT HOW...

500 shoppers to hit Warwick in Buy From The Bush bus trip

Premium Content 500 shoppers to hit Warwick in Buy From The Bush bus trip

Their only goal is to spend cash - and lots of it - on the Southern Downs.