12:00a.m. 14th May 2008

| By Jane Gardner and AAP

The Sunshine Coast’s federal MPs say local residents were shortchanged in last night’s budget - see the budget details here.

Member for Fisher Peter Slipper and Member for Fairfax Alex Somlyay – both Liberal – accused treasurer Wayne Swan of providing only one of nine Coast election promises, and omitting $960 million in road upgrades promised last November.

While Mr Swan’s budget has provided tax cuts, subsidies for childcare, assistance for primary and high school students and help for first home buyers and struggling renters, they say very little of the big-picture funding will filter to the Coast.

Mr Slipper, called it a “Robin Hood” budget that harkened back to the class warfare notions of the 1890s.

“The Sunshine Coast missed out, mega,” he said.

“It does nothing to recognise that as a growing community we have a particular need for extra funding for infrastructure.”

He said while he had not looked at the fine print, he could see “no tangible evidence” Labor had fulfilled election promises to provide a $5 million upgrade for Stockland Park, a $1 million Mooloolaba Spit revitalisation, a $5 million Maroochydore-Sunshine Coast exhibition centre or the $1.3 million for Nambour CBD refurbishments.

“There is also nothing there to upgrade the Bruce Highway to six lanes from the Sunshine Coast to Brisbane,” he said.

“At this point in time the only election promise they appear to have funded is the $4.6 million water recycling demonstration project for Coolum.”

Mr Somlyay said not one cent had been provided for road projects.

“There is nothing in the budget to indicate an increase in road funding,” he said.

He said he was most worried by changes to the Medicare levy threshold, which would discourage young people from private health insurance and put pressure on Sunshine Coast public hospitals.

“I’m sure Mr Swan is glad he doesn’t still live in Nambour and has to rely on the services at the Nambour outpatients,” he said.

Opposition leader Brendan Nelson said the budget was not anti-inflationary and typically Labor, jacking up taxes for people it disliked.

Dr Nelson said government was budgeting for 134,000 people to lose their jobs over the next year.

“This is a typical high-taxing, high-spending budget, which targets people that it doesn’t like,” Dr Nelson told reporters.

The budget did nothing to help families struggling to pay their mortgages, feed their children and put petrol in their cars, he said.

Opposition treasury spokesman Malcolm Turnbull agreed. He said the budget as an economic con, a high taxing, high spending old-fashioned Labor budget. And new taxes to raise the cost of alcohol, cars, health insurance and energy would add to inflationary pressures.

Related:

> What's in the 2008 Budget for you

> Australian Government Budget website

> Seniors feel snubbed by Treasurer

> Swan's budget fails green test

KEY BUDGET POINTS

2008-09 Cash surplus - $21.7 billion (1.8 per cent of GDP)

GDP growth - 2.75 per cent

Current account deficit - 5 per cent of GDP

Unemployment - 4.25 per cent

Employment growth - 1.25 per cent

Wages growth - 4 per cent

Consumer price index - 3.25 per cent

Savings $33 billion over four years, including $7 billion in 2008-09.

TAX

Personal income tax to be reduced by $47 billion over four years.

From July 1, person on $48,000 a year to get a weekly tax cut of $20; person earning $14,000 or less to pay no tax.

Tax thresholds to rise - 30 per cent from $30,001 to $34,001, 40 per cent threshold from $75,0001 to $80,001, 45 per cent threshold from $150,001 to $180,001.

Medicare levy surcharge threshold to rise from $50,000 to $100,000 for singles, from $100,000 to $150,000 for couples.

Fringe benefits tax crackdown, to raise $1.4 billion over four years.

Tightening of tax rules on those who use laptops for personal more than work use.

FAMILY PAYMENTS

Family tax benefit to be means-tested, only available where main earner earns less than $150,000 a year. From July 2008.

Baby bonus to be means-tested from January 2009, so it will only go to families earning less than $150,000.

Tax rate on luxury cars to rise from 25 per cent to 33 per cent, from July 2008.

Tax increased on ready to drink alcohol.

Comprehensive review of tax system to the end of 2009, but there’ll be no change to the GST rate or tax-free super for those over 60.

THE FUTURE

New $20 billion building Australia fund to finance roads, rail, ports and broadband.

New $11 billion education investment fund to finance skills, TAFE colleges and universities.

New $10 billion health and hospitals fund to finance improvements to hospitals and health care.

Child care Child care tax rebate to rise from 30 per cent to 50 per cent; cap on rebate amount that can be paid to rise from $4,354 to $7,500 per child; child care tax rebate to be paid quarterly, instead of annually.

Baby bonus to rise to $5,000 from July 2008.

EDUCATION

New $11 billion education investment fund to finance skills, TAFE colleges and universities. 50 per cent tax refund on education expenses, to cost $4.4 billion over four years.

$1 million per school for computers.

All 4 year olds to get 15 hours a week, 40 weeks a year of early childhood education by 2013.

HEALTH

New $10 billion health and hospitals fund to pay for improvements to hospitals and health care.

Committing extra $3.2 billion over five years to public health.

Immediate injection of $1 billion to relieve pressure on public hospitals.

$10 billion health and hospitals fund set up for long-term funding of hospitals, technology and research.

$275 million for GP super clinics; $39 million to bring nurses back into the workforce.

HOUSING AFFORDABILITY

$2.2 billion package, including saver accounts to help people save for first homes. First $5,000 of individual contributions in saver account to attract 17 per cent government contribution.

Rental affordability scheme to encourage building of 50,000 new rental properties by 2011-12, costing $623 million over four years.

SENIORS

Concession allowance up from $218 to $500; phone allowance up from $88 to $132 for those with internet; utilities allowance up from $107.20 to $500, to be paid quarterly.

CARERS

Lump sum payments of $1,000 to carer payment recipients, $600 to carer allowance recipients.

Expanding eligibility for carer payments.

Additional 19,000 carers of children with severe disability to be entitled to carer payment in 2009-10, costing $274 million over five years.

CLIMATE CHANGE

$2.3 billion over five years to cut greenhouse gas emissions $500 million over eight years for clean coal; $500 million over six years for renewable energy; $150 million over four years for energy innovation; loans of up to $10,000 to households to cut water and power use.

Public service 1,200 commonwealth public service jobs to be lost as part of 2 per cent “efficiency dividend”, saving $1.8 billion over five years.

REGIONAL

$2.2 billion over five years for caring for country program. $176 million over four years to improve infrastructure and services in regional Australia.

$271 million over four years to provide regional areas with metro-comparable broadband.

$130 million over four years to help farming adapt to climate change.

TRANSPORT

New $20 billion building Australia fund to finance roads, rail, ports and broadband.

$75 million feasibility study on high-priority transport projects.

INDIGENOUS

$90 million over five years for child and maternal services; 99 million over five years for extra teachers in the Northern Territory; $56 million over four years to expand literacy and numeracy programs.

BUSINESS

Begin to reduce withholding tax, cutting current interim rate of 30 per cent to final rate of 7.5 per cent for most non-resident investors.

DEFENCE

Defence budget to reach $22.66 billion in 2008-09; $1.04 billion for overseas operations.

Overseas development assistance to rise from $3.2 billion to $3.7 billion.

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