, jASAI( A F76/ 174
PRIME MINISTER
FOR PRESS 22 AUGUST 1976
ELECTORAL TALK
The Government's first budget is a budget of reform.
First and foremost it is a people's budget. It is not
just a budget for business, for mining companies or for
large producers. It is a document that recognises that
people come first.
The budget strategy follows a strong and consistent Liberal
approach to national progress it places emphasis on individual
opportunity and concern for those in need.
Tonight I want to talk to you about the real reforms this
budget presents to all Australians.
In every sense, the Liberal/ NCP Government has pursued a
consistent course for reform that was long overdue. Just on
nine months ago, we told Australians there were many reforms
we wanted to introduce. We said that some could and must
be introduced immediately. That was last year, before the
election. What has happened since?
Quite simply, the Government has honoured its promises. We
have brought in some of the most significant social reforms
sinceFederation. And these reforms have been introduced in
such a way that the community can afford.
On May 20, the Treasurer announced a family allowance scheme
that provided immediate and direct cash benefit to 300,000
Australian low. income families and 800,000 children. This
scheme is already in full operation. A great deal of personal
hardship and suffering has been alleviated and a great deal
more avoided. It has been applauded by trade unions, social
welfare organisations, community groups and even supported
by our political opponents.
At the-same time) we announced the introduction of full indexation
of personal income tax. We said we would do it within three
years. It took just six months.
Both of these reforms reforms that put people first were
an integral part of our budget strategy. They are a keystone of
Liberal philosophy. / 2
2.
They were introduced before the formal August budget to
provide the much-needed confidence and relief to those many
thousands of Australians on low incomes who were not previously
protected against the destructive -forces of inflation.
We took the unprecedented step of introducing a major part of
our budget strategy three months before the'budget was
introduced, in the Parliament. We believe that those three
months were too precious to waste. We could not let Australia wait.
The formal budget introduced by the Treasurer last week
followed our consistent course ' to reform.
The Government allocated $ 5389 million for our continuing
committment to maintain and improve Social Security benefits
and welfare services.
This figure about one quarter of the total budget outlayrepresents
a 23 percent increase over the amount spent in
this area last year.
The Government has been concerned to make sure that people in
greatest need receive the greatest assistance. We believe
that this budget allows us to do just this.-
Our concern for people is illustrated in many ways. Pensions
will now be automtatically adjusted in line with Consumer Price Index
increases. This move will protect pensioners against increased
living costs. For the first time it will take pensioner
payments out of the political arena.
The separate property component in the means test for
pensioners has been abolished. From early November pensioners
will be means tested on income only. This will include income
from property. It is not a test based on the combined value of
income and property.
Many pensioners will gain fromt this significant reform. It will,
prevent injustices where-many people are now denied the pension
simply because they own property.
For the thousands of Australia's handicapped this has been a
budget of real reform. No other Australian Government
has done more for the handicapped than this Government.
Allowances to handicapped children have been increased by 50 percent.
From the beginning of November the allowance will jump from
to $ 15 a week. Also, the handicapped children's benefit paid
in respect to handicapped children in instutions has been increased
from $ 3.50 a day to $ 5 a day. These two increases will benefit
about 21,000 handicapped children.
Funds for handicapped persons assistance will be $ 121 million
over the next three years. This will assist voluntary organisations
set up and operate sheltered workshops, therapy-and training
centres and to provide accommodation for handicapped children
and adults.
For all of Australia's handicapped children and adultsand
the friends, relatives or guardians of the handicappedthis
Government's first budget is a social document in
the truest sense.
The Government has shown to the handicapped that we are
concerned first with people, and not just with figures.
As previously announced, the Government has allocated
$ 225 million over the next three years to subsidiso
the building of aged persons accommodation. This again
is a significant degree of assistance to an area of real need.
It will provide urgently needed accommodation for about
15,000 aged people.
This programme will also assist voluntary organisations
by ensuring a continuing of planning and building for
the next three years. They will be able to borrow in this
first year against the allocation for the remaining two years.
In our budget we also introduced a special deduction to apply
where an interest in an estate passes to a surviving spouse.
The Government regards this as a necessary and important
reform as it is an area of the law where personal tragedies are
commonplace.
Following a view put by the Henderson Inquiry into Poverty,
the Government has decided to implement a trial programme
designed to assist low income earners choose their own rental
accommodation on the open market.
If successful it will provide the Government with a new mechanism
to make welfare housing sensitive to the needs of the users rather
than-. those of the planners. The Government will look closely
a t progress in this important social welfare area.
From those in need of special as'sistance to ordinary working men
and women this is a budget that puts people first.
For the first time in four years, Australians were not hit
with indirect taxes to help pay for expensive and wasteful
Government programmes. There was no extra indirect tax on
cigarettes, wine, beer or petrol. It was not needed, it was
not wanted.
In my Policy Speech late last year, I said that Australia
needed reform. Our first budget that includes the May
statement has advanced Australia one major step in fulfilling
that need.
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