Global slowdown behind Budget jobs slump: Rudd Posted 48 minutes ago Updated 42 minutes ago
Federal Budget details Prime Minister Kevin Rudd says an increase in unemployment predicted in last night's Budget can be partly blamed on the global economic slowdown.
Treasurer Wayne Swan's first Budget included a forecast that unemployment will rise by 0.75 per cent by the middle of next year.
Mr Rudd says the Government hopes Budget measures including tax cuts and increases to the childcare rebate will help families cope with a worsening jobs market.
"In a global economy, where you have got contractions in the United States and in Europe [and] revised growth projections for east Asia, there is going to be some knock-on effect," he told ABC Radio's AM program this morning.
Meanwhile, the Opposition has not yet announced if it supports the Budget's $150,000 means test for the baby bonus and Family Tax Benefit B.
The Government says families earning that much did not need government welfare payments.
Also speaking on AM, Opposition Leader Brendan Nelson said he had not decided if he agreed with the income cut-off.
"As far as we're concerned [this] is targeting families and targeting something [having babies] that needs to be encouraged," he said.
"As far as having babies is concerned we will have a look at the detail of that and we'll also have a look at the detail of the Family Tax Benefit B and the means test being applied to that."
Speaking earlier on Channel Seven, Mr Rudd said the Government decided people on modest levels of income needed more help than the well off.
"We've taken a hard decision and said this is probably where the line lies," he said.
"I know that's going to upset some people on baby bonus, on Family Tax Benefit B and in other areas, but we think this is a reasonable line for the future."
