Federal treasurer Peter Costello's 10th budget, to be revealed on May 10, will continue the federal Coalition government's neoliberal "reform" — pushing increased "user-pays" and the privatisation of Medicare and higher education.
The dire state that higher education has been reduced to after 10 years of education "reform" — centred on funding cut-backs aimed at pressuring universities to increase tuition fees and seek private sector funding — was encapsulated by the announcement by Newcastle University on May 3 that it would be cutting at least 180 academics and 290 general staff from its payroll.
Under measures announced several weeks ago, Medicare is to be further eroded as a free, universal health-care system, and will become a "safety net" for only the poorest 5% of the population, with "low-income" patients having to spend $500 and "average-income" patients having to spend $1000 before the government covers 80% of their out-of-pocket medical expenses.
Meanwhile, the government will continue to hand over several billion dollars in subsidies to the private health insurance companies.
While the Salvation Army and the Australian Council of Social Services estimate that 2.2 million Australians are living in poverty, in 2005-06 the Coalition government will cut $3.8 billion from income taxes paid by the rich. And a week before the budget, Prime Minister John Howard signalled that further big tax cuts for the wealthy are in the pipeline.
Under the Howard government's tax "reforms", from 2000 to 2008 single people and childless couples earning less than $1000 will have received only a $4.50 per week "sandwich and milkshake" tax cut and receive no offsetting welfare payments.
The growth in social inequality promoted by this government is indicated by the fact that the profits share of gross domestic product — 26.7% in 2003-04 — was at its highest recorded level since 1959-60, while the wages share has been driven down to 53.1% from its peak of 61.5% in 1974-75. It is further indicated by the fact that 16% of working-age Australians are now dependent on welfare payments as their primary source of income.
As with its previous budgets, this one is aimed at further rolling back the concessions the Australian corporate elite was forced to grant to working people when their mass organisations — the trade unions — were strong enough to be able to mobilise their members in militant struggle.
Through the ALP-ACTU Accord of the 1980s and early '90s, the union movement was significantly demobilised and weakened. With its next round of planned industrial relations "reforms", the Howard government will attempt to impose crippling restrictions on the unions, particularly the minority of still-militant unions that rely on the on-the-job organisation of their members to defend workers' pay and conditions.
Defeating these IR "reforms" is vital to any resistance to the Howard government's other attacks on working people. This is why the largest possible turnout for the June 30 protest initiated by the Victorian unions is crucial to rebuilding mass resistance to the Howard government's neoliberal agenda.
From Green Left Weekly, May 11, 2005.
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