Budget Déjà Vu: A Tiny Surplus on the Thin End of Wedge Politics

To deliver a negligible budget surplus, the federal government increased taxes and saved on expenditure – then for good measure curried favour with middle Australia by giving much of it back. Treasurer Wayne Swan opted to sweat the small stuff rather than bust out any big reforming moves. He showed tough love to lower-income earners and welfare beneficiaries and no love to big earners. Neil Warren and Dale Boccabella, professors at the Australian School of Business, see some potential risks in the 2012 budget's game of halves, not least the fact that the superannuation rules are again a'changing.