Is this one a good or a bad budget?

13/05/11: Is this one a good or a bad budget?

I can't remember a leader of the opposition calling for an election over a budget before, but good on Tony Abbott. If your job as leader of the opposition is to create uncertainty, fear and doubt over the actions of your opposing party, he is having his go.

The claim by Prime Minister Julia Gillard's government is that this is a budget to get us back into surplus within two years. It's a responsible strategy. But at first glance this week, the reality looks tepid and weak.

Whether you vote Labor or Liberal, former prime minister Kevin Rudd took control a country with a healthy surplus. Move to a post-global financial crisis world and we are now a country faced with a $15 billion deficit blowing out to $20 billion. Australia is now borrowing approximately $135 million a day. The government handed out and is now taking back.

Thanks, but I'm not sure how all this is helping me.

Our utility bills are going up. My pensioner mother is suffering on a minute pension despite spiralling living costs. Bank lending for business is hard. I am not sure how my young staff or teenage children are going to buy their first homes.

The long-term impact of whether Rudd's decision to borrow and spend big to help "sail" us through the GFC is yet to be seen . My colleagues in business are not talking of things getting easier. How are you faring?

The economy of this country relies heavily on our mining industry. It's our financial backbone. We are one big quarry servicing the world. This is fine as long as China, in particular, doesn't "sneeze". But if they do, we catch a horrible flu . But where is our plan B? Do we need one? What is the government doing for business owners?

The federal government has said it will cut taxes for small business and spend $34.4 million in an attempt to even out the "patchwork economy". We need a limit on red tape and a whole range of changes for a variety of small businesses that are still hurting.

On a positive note, the budget sniffs at a focus on skills and jobs, particularly plans to bring in skilled migrants to work in regional areas. But the decision to scrap the entrepreneurs tax offset, in favour of a $5000 tax deduction for new car purchases by small business, is an unhelpful bonus if you've just bought your new car!

Here is a quick look at the implications for small business owners and ordinary Australians.

Budget forecasts for residential construction activity imply a difficult environment for small business.

Any reduction in company tax is a good one, but we have to wait until 2012-13 to see the company tax rate reduced.

We have the opportunity to lower the amounts of pay-as-you-go tax instalments we make in 2011-12. But this is in lieu of the entrepreneurs tax offset, which will be scrapped.

The entrepreneurs tax offset is now being replaced by instant tax write-off of the first $5000 cost of any motor vehicle purchased from 2012-13 (good for those looking to get a new car).

The Small Business Support Line will receive an extra $7.1 million in funding over the next four years.

The long-term jobless will be forced to re-engage with employers or lose their benefits. Job seekers who have been out of work for more than 24 months can't expect welfare payments without showing a commitment to finding work.

Workers on $30,000 a year will gain an extra $300 during the year in the form of tax cuts for low-income earners.

The budget also provides an increase in family tax benefit for families with teenagers to entice them to stay in secondary schooling. An increase of up to $4200 per year is expected for some families.

From afar the 2011 budget bottom line is largely unchanged. So while there are cuts and the reins on spending are being held tightly, economists assume the Reserve Bank of Australia will hike up interest rates by mid-2012, putting more pressure on us as business owners, parents, and ordinary Australians.

The opposition has also heavily criticised the budget because it will not include details of the planned carbon tax, due to start in July 2012. The government said the carbon tax cannot be included, because details of the scheme are still being worked out.

What are your thoughts on this year's mixed bag of a budget? Is it good or bad for you? What are your pressures? Is the government out of touch with everyday Australians?

To view Sharon's blog on Ninemsn, click here.

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