Tony Abbott continues to hedge on whether a deficit levy will be part of the May 13 Budget.

But he insists any temporary tax hike won’t break his pre-election promise not to introduce new taxes.

Hannah Daley reports.


Another day, another Budget rumour.

And our Prime Minister is not denying it.

The temporary debt levy expected in the May budget, will kick in when you earn $80,000.

You’ll pay $15 a week.

For those on $200,000 a year it jumps to $77.

As well, families collectively earning more than $100,000 could be stripped of benefits.

Mr Abbott says, it’s all for the greater good.

Prime Minister, Tony Abbott: “The budget pain will be temporary, but the economic improvement will be permanent.”

Bill Shorten again hammered the broken pre-election promises theme.

Opposition Leader, Bill Shorten: “The idea that the Abbott Government wants to put a new tax on ordinary Australians is a bad idea and I predict the Abbott Government will fold this issue before the budget. It’s a bad idea. It’s a broken promise. It’s a tax increase. Labor will have no part of it.”

Among the other Budget priorities there’s a Medicare co-payment, means testing of the age pension and raising the retirement age to 70.

The one saving, the reforms won’t occur within the next five years.

Prime Minister, Tony Abbott: “I want to assure vulnerable people that the age pension won’t be less tomorrow than it is today.”

The Prime Minister’s signature paid parental leave scheme could remain unscathed.

Although some Liberal colleagues want the $5.5 billion commitment scaled back.

The budget wasn’t the only burning issue today.

The feud between Clive Palmer and the Newman Government continues to heat up.

With claims Palmer offered MPs inducements to switch to his Palmer United Party.

David Crisafulli, Qld LNP: “Increasingly we are seeing the actions of Mr Palmer become more and more shambolic everyday.”

Mr Palmer’s denied all the LNP allegations.

Hannah Daley, QUT News.