One lump or two?
Another year, another budget that makes my coffee habit look like a solid investment strategy.
Every year, my wife and I review our finances meticulously, ensuring we only pay for necessary subscriptions and have the best insurance deals. We’re frugal, except for my daily indulgence: two barista-made double-shot flat whites, costing around $2,000 annually. I justify this expense as a reward for being disciplined in other areas.
This year’s federal budget, however, lacks this discipline. While Labor’s 2025 budget offers tax cuts and increased spending, it feels like an election-time indulgence. The tax cuts are delayed and minimal, and there’s no plan for economic growth or structural reform.
We expected an election-friendly budget from Labor as tax cuts and more spending always sound good, especially in regions like Tasmania. But without a clear plan to grow the economy, it’s all short-term sugar.
The Coalition has an opening, but they’ve got to be careful. If they come in talking job cuts, especially in the public service, they’ll lose people fast. Voters want something responsible, sure, but it also has to feel fair and grounded in the real world, and not just Canberra politics.
People want their tax dollars treated with respect, and they understand that small tax cuts don’t mean much if their living costs keep rising.
While Canberra focuses on election sweeteners for our coffee, the rest of us are managing our finances responsibly.
They should do the same.