Tonight Wayne Swan handed down his 6th Federal Budget. Here are the major points.
- $19.4 billion deficit this coming financial year. Last year it was forecast to be $1.5 billion in surplus meaning this is a turnaround of negative $20 billion. This is almost the similar change between the forecast deficit of $22 billion in 2012/13 and the actual of the deficit of $44 billion. Then the difference was $22 billion variance between actual and forecast.
- Second Largest Revenue write down of over $60 billion over the next 4 years. $170 billion has been wiped off tax receipts since the Global Financial Crisis.
- Baby Bonus to be abolished, replaced with a $2000 payment as part of the Family tax benefit Part A. Increase in Family Tax Benefit Part A of $1000 for additional children.
- Balanced Budget forecast in 2015/16 and returning to surplus in 2016/17
- Infrastructure Package announced totalling $24 Billion for 2014-19
- Family Benefit A indexation freeze continued, $2.5b saving
- $1.9b saving in deferring foreign aid spending goals.
- Medicare Levy increased by 0.5% to 2% pay for National Disabilities Insurance Scheme – $11.4b over four years
- Labor has officially dropped the internet filter. It will save them $4.5m
- $14.3 Billion invested in Disability services
- $434m budgeted for the Royal Commission into Institutional Responses to Child Sex Abuse
- Economic Growth forecast for 2013/14 is 2.75% and in 2014/15 it forecast to be 3%
- Floating carbon price predicted to be $12/tonne
- Unemployment forecast to be 5.75% for the next two years then 5.25% in 2015-16
- $22m in advertising the NBN
- Investing over $100 million in screening for breasts, cervical and bowel cancer, supporting critical chemotherapy medicines
- An income tax cut slated for 2015-16 will be deferred. The tax cut was part of the carbon scheme compensation package and would have increased the tax-free threshold from $18,200 to $19,400
- $300 million funding boost will allow welfare recipients earn more from paid work, study and access concessions
- $6.2bn to be spent over 5 years from 2012-13 to support recovery efforts from natural disasters
- Defence spending up $10 billion
- $9.8 billion in school funding reforms outlined in the Gonski review, over six years from 2014-15
- Almost $100 million for a new farm household allowance to support farmers in hardship
- Minerals resources rent tax estimate down from an original forecast of $13.4 billion to $3.3 billion over the forward estimates
- Medicare safety net threshold increased from $1221.90 to $2,000 from January 1, 2015, saving the Government $105.6 million over the forward estimates
- $2.3 billion in cuts to higher education funding. The 10 per cent discount on paying university fees upfront will be abolished, student start-up scholarships will be converted to loans, and there will be a lower limit on tax deductibility of self-education courses, saving the Government $500 million
- The average cost of a basic packet of cigarettes will increase by 7 cents in the first half of 2014.
- $580 million in cuts to the public service
Categories: Current Affairs