Wayne Swan will hand down the federal Budget this week. Picture: Gary Ramage Source: Herald Sun
NOT that treasurer Wayne Swan really needs any extra complexities for this year's federal Budget, to be handed down tomorrow, but here is something additional for him to consider.
Sydney's cost of living, traditionally higher than in any other Australian capital city, now runs at anywhere from $2100 to almost $5000 a year more than any other capital city.
The financial pressure this places on Sydney is obvious, from real estate and rental markets throughout the rest of our state's economic structure. And, although Sydney wages are higher than in those other capitals, those wages don't cover the cost of living gap.
The challenge for Swan, or for any future treasurer, is to properly address Sydney's growing cost of living during a time of limited state and federal funding. One potential answer is to look for more creative funding methods, with an increased percentage of private investment.
Another answer comes from the opposite end of the economic map, and will prove an even tougher challenge. Further and deeper tax reductions are an essential part of Sydney's financial future.
The present Labor government has introduced a range of expenses, specifically the carbon tax, that seem almost designed to impact especially on western Sydney. It is little wonder that western Sydney now shapes as such a crucial battleground in September's looming election.
We await the Treasurer's answer to these challenges.
No comments:
Post a Comment