Federal Budget 'somewhat frightening', says Mortgage Choice chief

by Julia Corderoy05 May 2016
The CEO of major mortgage franchise Mortgage Choice has labelled the 2016 Federal Budget as “somewhat frightening”.

“We need leaders who are bold enough to acknowledge that slicing up the same old pie in different ways is simply not going to cut it anymore,” Mortgage Choice CEO John Flavell said.

According to Flavell, Treasurer Scott Morrison’s Federal Budget handed down on Tuesday night is weak in a time when the country needs a “structural overhaul”.

“At a time when we require a structural overhaul of our taxation system, we get the usual show bag of ‘fiddles at the fringe’ to ensure no-one (other than smokers and cashed up retirees) is offended in the lead up to the election,” he said. 

“At the end of the day, we need a structural overhaul of our taxation system to promote corporate investment on our shores. We need an environment that encourages Australians to invest in themselves and their future worth in the workplace.”

The Budget also fails to address Australia’s increasing levels of indebtedness, Flavell said.  

“Since we fell into the red in 2009, the shortfall between what the government earns and spends has risen to an amazing 21.5% of gross domestic product. This is an inordinately large sum of money – something the Government doesn’t seem to care too much about. 

“Maybe they do need to care. Even though the Government has told us not to worry because they have an ‘economic plan’, I am still concerned about our increasing levels of indebtedness.”

While the Mortgage Choice head praised the incentives offered to small businesses in the 2016 Budget, he is ultimately labelling it as “benign” and a “clever PR stunt”.

“Small businesses play a very important role in our economy and they are going to play an enormous role in the future. Whilst it is pleasing to see continued initiatives that encourage small businesses to invest and grow, it is frightening to see the enormous burden the Coalition is placing on the shoulders of these small businesses,” Flavell said. 

“That aside, [Tuesday] night’s Budget could really be considered a clever PR stunt by the Federal Government. No doubt they would consider their benign Budget to be ‘election winning’.”