The Coalition Governments proposed income tax cuts have been described by the Australian Democrats as an absolute disgrace and its family packages still fails to include the introduction of paid maternity leave.
Democrats Leader, Senator Andrew Bartlett said, Tax cuts only for high income earners are offensive. Giving $42 a week ($2,195 a year) to high income earners but no tax relief to the average worker is contemptuous and unacceptable.
"No self-respecting Labor Party could pass that in the Senate and I call on Mark Latham to support the Democrats in ensuring any tax cuts are shared fairly by all Australians.
"We estimate that instead of giving high income earners $42 a week and nothing to lower and middle income earners, we could provide all taxpayers with around $10 a week for the same cost.
"The Treasurer's assertion that tax cuts for high income earners will "improve rewards for those wanting to work overtime", flies in the face of his so-called Family Friendly Budget.
"The Treasurer's solution to the problem of balancing work and family is to provide tax cuts to high income earners and to tell low and middle income earners to spend less time with their families and work longer.
"Tax cuts for lower income earners are needed to prevent poverty traps and encourage people off welfare and into work. This Budget will simply increase the growing gap between the haves and have-nots.
"The Governments work and family package provides some relief for many families but still falls short. The measures announced tonight should have been implemented in the first year of the Governments term, not on the eve of an election
"The Government's maternity payment to all Australian women is long overdue. It is much better than the regressive and ill-targeted baby bonus, as it is an up-front payment in recognition of the additional costs of a new child. However, the $3,000 is selling 70 percent of women short those women in the labour force before the birth of their child.
"The Government's payment is still less than half the amount of the Democrat's policy which is for 14 weeks paid maternity leave at the minimum wage, currently $6,543.60 before tax. Both Labor and the Coalition still ignore that women in the workforce need paid maternity leave as a workplace entitlement, like annual and sick leave, not as a welfare payment," Senator Bartlett said.
"The Government has also fallen well short on childcare, funding less than half the new places needed. In addition the Government have ignored recommendations by its own child-care experts to increase childcare benefit to pay for a wage increase to child care workers, and to counteract the 30 percent increase in childcare fees over the past 2 years.
"Almost all the good measures are ones that should have been done two years ago. The Australian public will undoubtedly be cynical when they receive a wad of money on the eve of an election."
Some of the welcome measures include:
Maternity payment (but not as good as the Democrats Paid Maternity Leave)
Increased Family Tax Payments and measures to reduce the high effective tax rates on mothers returning to work
More childcare places
Payments for carers (nearly half a billion over five years) and particularly the recognition of young carers
Additional funding for intelligence and East Timor security
Expanding the Superannuation co-contribution
"There has been a totally inadequate contribution in this Budget to filling the gaps in services.
"There has been almost nothing new for the environment, with this years statement again an almost total 'con'. Almost all of the significant extra expenditure is 2 or more years down the track and comes from 'reprioritised' existing expenditure.
"Any extra money for schools is welcome but will worsen the unfairness built into the Government's funding formula. The Higher Education burden will continue to fall on students and their families.
"There is little significance to address the continuing holes in Medicare and the broader health budget.
"The strong economic position of this country is not only due to the handiwork of Peter Costello but also the sound, responsible management of the Senate. The Democrats will continue that approach with this pre-election Budget. We will not support unfair tax cuts and we will scrutinise expenditure," Senator Bartlett concluded.
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