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Australian Times


More Cuts To Affect Middle-Class Families

April 2, 2012 by rochelle in Politics

Prime Minister Julia Gillard has announced more cuts to middle-class welfare. The move is to help the budget back in the black and to reduce payments to “high-earners.”

The Prime Minister said there is a likely possibility of further cuts to Medicare Safety Net. This provides as much as 80 percent refund for healthcare costs of over $1,198 annually.

Medicare Safety Net has mainly benefited high-income earners and cost of maintaining it has risen to 20 percent annually. Further rebate caps are also expected for medical procedures in the areas of obstetrics and in-vitro fertilization.

The Federal Government said more Budget cuts will be implemented this May to make sure that the Budget posts a surplus for 2012.

Treasurer Wayne Swan said because of the cuts, some programs of the government might get the boot. Swan furthered that welfare for those who don’t need it.

The Prime Minister, however, was quick to defend the government’s handout to the car industry. Many believe that the car industry is dying especially in the southern states.

Gillard also discussed Queensland’s tourism industry, which is facing tough times. She said if Labor does not pass its planned tax cuts, the tourism industry may suffer even more. Among the suggestions she raised include tweaking visa rules and providing training programs for travel operates.

The news of more cuts does not sit well to many families and the government is facing much criticism. It, however, is keen to manage its Budget to ensure uninterrupted services to citizens.

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