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Democrats Signal Tougher Approach to Budget, Seek Collaboration with Opposition

Strategic Insights

— 1 min read

The Democrats have announced a harder stance towards the Budget, indicating a willingness to collaborate with the Opposition on crucial policy reforms if the Government fails to meet their demands. The party's leader, Senator Cheryl Kernot, expressed concerns about the Government's potential disregard for their Budget submissions, accusing the Government and Opposition of colluding to marginalise the Democrats and the Greens in the Budget process. Despite the Opposition's refusal to support new taxes, the Democrats are prepared to test the coalition's commitment to reforms supported by the party.

Key Takeaways:

  • The Democrats have set benchmarks for the Budget, which they have submitted to Treasurer Mr. Willis, and will vote on the Budget by 30 June, but are free to oppose individual measures.
  • Senator Kernot has expressed concerns about the Government's potential disregard for the Democrats' Budget submissions, citing the lack of recognition for Australians who bore the brunt of the recession and the absence of public capital expenditure.
  • The Democrats are willing to collaborate with the Opposition on issues such as abolishing payroll tax, providing assistance to small business, and funding Aboriginal health initiatives.
  • The Democrats and Greens have been accused of putting forward "absurd" Budget proposals, including tax increases of $5 billion.
  • Opposition treasury spokesman, Mr. Alexander Downer, denies any collusion with the Government and attributes the Democrats' marginalisation to their own willingness to accommodate the Government.

Statistics:

  • Budget submissions deadline: 30 June
  • Proposed tax increase: $5 billion
  • Public capital expenditure mentioned: absent from the Keating white paper
  • Number of issues the Democrats are willing to discuss with the Opposition: at least 5 (abolishing payroll tax, assistance to small business, Aboriginal health funding, extra funding for breast cancer, and other unspecified issues)

Sources:

  • The Canberra Times
  • Interview with Senator Cheryl Kernot
  • Statement from Mr. Alexander Downer
  • Government and Coalition sources

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