Budget 2016 labelled a bust by mortgage broking chief

Adam Smith 5 May 2016

thumbs downA mortgage broking chief has called the Federal Budget "somewhat frightening" in its lack of structural change.

While some housing industry figures have praised the Federal Budget, one mortgage broking head has given Treasurer Scott Morrison poor marks.

The Housing Industry Association recently praised the Budget for leaving negative gearing untouched and investing in infrastructure projects, but Mortgage Choice chief executive John Flavell has voiced a less sanguine reaction to the Budget, labelling it “somewhat frightening”.

“At a time when we require a structural overhaul of our taxation system, we get the usual show bag of ‘fiddles at the fringe’ to ensure no-one (other than smokers and cashed up retirees) is offended in the lead up to the election,” Flavell said.

Flavell argued that structural overhaul was necessary to draw corporate investment to Australia.

“We need an environment that encourages Australians to invest in themselves and their future worth in the workplace. We need leaders who are bold enough to acknowledge that slicing up the same old pie in different ways is simply not going to cut it anymore,” he said.

Flavell called the Budget a “clever PR stunt” meant to win the election by plotting a benign course.

“At the heart of the Budget, everyday Australians were given no cause for concern. But perhaps we should be concerned. Since we fell into the red in 2009, the shortfall between what the government earns and spends has risen to an amazing 21.5% of gross domestic product. This is an inordinately large sum of money – something the Government doesn’t seem to care too much about,” he said.

“Maybe they do need to care. Even though the Government has told us not to worry because they have an ‘economic plan’, I am still concerned about our increasing levels of indebtedness.”

See how the Budget will hit your wallet.

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