“As a Labor Prime Minister, I find these decisions both urgent and grave. This revenue discussion is not historical, it’s very contemporary. There is new news here compared to six months ago – and new news here compared even to three months ago. Therefore, I have expressly determined we need to have every reasonable option on the table to meet the needs of the times, even options previously taken off the table,” PM Gillard remarked.
The Prime Minister maintained that the upcoming budget will be purely focused on the ongoing economic crisis instead of the upcoming general election.
“Tuesday 14 May will be no old-fashioned pre-election budget night. What the treasurer will deliver will not be a political pamphlet – he will outline an economic program. The budget will outline the fiscal path for the coming four years, one designed both to take account of the nation’s current circumstances and to shape the nation’s future,” she added.
“We expect nominal GDP growth for future years to be revised down. For the budget bottom line, it’s a very meaningful fact – because, naturally enough, companies don’t pay tax on volume, they pay tax on value, which is driven by price,” she said.