The 2010 Federal Election Guide

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Thank God this election is almost over.

Neither party has been what you would call inspiring – both are short on vision and long on populist policy. But Politics 101 says that you don’t need to think past the weekend so long as you policies aim at the punters hip pockets.

And their target? Working families, like Mark and Belinda (see box).

So lets take a look at what’s on offer from both parties. (Even if you’re not living in the suburbs with 2.4 kids, you should still pay attention. After all, you’re paying for it):

Paid parental leave

This is Abbott’s centrepiece strategy for wooing women voters. His plan, kicking off in 2012 (if he’s elected), offers six months’ paid leave at a person’s full wage (up to $75,000).

To fund it, Big Tone is socking big businesses an extra 1.5 per cent in tax. Which sounds great – so long as companies like Coles and Woolworths don’t handball it back to us in the form of higher prices.

Labor’s parental leave scheme is more modest. It starts next year and offers 18 weeks’ paid leave at the minimum wage of $543 (or $9,774)

The baby bonus and family tax benefits

To ward off Today Tonight doing exposés on teenagers having babies to get plasma TVs, the baby bonus is no longer paid as a lump sum ($5294) when the baby is born (it’s now 13 fortnightly payments).  Although the Government plans to allow parents to get a $500 advanced upfront payment to meet the expenses of setting up a nursery.

From 2011 eligible families will also be able to apply for further advanced payments worth up to 7.5 per cent of their family tax benefit, to help with large upfront costs of setting up a household. The coalition is keeping mum on their baby bonus policy.

Childcare rebate

Affordable childcare has been an issue for families for years that not even Eddie Groves could fix.

The Government currently covers half the out-of-pocket childcare costs, but they scrapped indexing the payment to inflation in the budget – which will cost a family around $300 a year.

The Coalition has promised to reintroduce the indexation, and will pay the rebate weekly.

Education tax rebate

Sending your kids to public school may be free but it certainly ain’t cheap – parents are hit up for books, uniforms, calculators.

That’s why lower-income parents can claim 50 per cent of eligible education costs as a tax rebate.

The rebate is currently set at $390 for primary school students and $779 for secondary students, and during the election the Government promised this would now include the cost of uniforms.

The Opposition is trying to steal Labor’s thunder and plans to increase the rebate to $500 for $1,000 of spending for a primary school child, and to $1,000 for $2,000 of spending for a secondary school child. Importantly, the Coalition will open up the eligible expenses to include a wider range of expenses – even private school fees.

The internet

I think I once ate a gigabyte at Smorgy’s Bar and Grill, but I can’t be sure. I’m with Tony Abbott on this one – I’m no tech head. And neither are the majority of voters who are trying to size up each party’s broadband plans. That’s why their decision-making goes something like this:

Faster = Better

Sure, the idea of trusting the Government to spend $43 billion to create a monopoly is worrying. And, OK, the advancements in technology (especially wireless) could leave us with a great white elephant and incur debts that our children will have to repay for years to come. But we want to watch YouTube videos with-out-it-buff-er-ing.

Besides, the Government has a great track record of spending our dough sensibly, right?

Superannuation

The Government plans on raising the Superannuation Guarantee from its current 9 per cent to 12 per cent over the next decade. That will put a smile on the dial of employees, and a frown on the dial of businesses that are footing the bill.

The Government has also said it backs the Cooper Review’s recommendation of introducing MySuper – low-cost, no-frills, no-commission default super accounts that will be around 40 per cent cheaper than current retail offerings.

The Coalition’s position stands at the opposite end of the spectrum: they are not in favour of increasing the Superannuation Guarantee as they see it as an impost on business. Fair enough.

They also don’t agree with banning trailing commissions, which, in my humble opinion, is ridiculous, Tony. 

So whoever gets your vote today, remember that political promises are made to be broken. And with interest rates likely to continue to rise, it’s up each of us to make sure we spend within our means – something neither leader has to worry about.

Tread your own path!

Photo: http://www.flickr.com/photos/rohit_saxena/3590287653/

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