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Tonight Wayne Swan handed down his 6th Federal Budget. Here are the major points.

1. $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.
2. 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.
3. 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.
4. Balanced Budget forecast in 2015/16 and returning to surplus in 2016/17
5. Infrastructure Package announced totalling $24 Billion for 2014-19
6. Family Benefit A indexation freeze continued, $2.5b saving
7. $1.9b saving in deferring foreign aid spending goals.
8. Medicare Levy increased by 0.5% to 2% pay for National Disabilities Insurance Scheme – $11.4b over four years
9. Labor has officially dropped the internet filter. It will save them $4.5m
10. $14.3 Billion invested in Disability services
11. $434m budgeted for the Royal Commission into Institutional Responses to Child Sex Abuse
12. Economic Growth forecast for 2013/14 is 2.75% and in 2014/15 it forecast to be 3%
13. Floating carbon price predicted to be $12/tonne
14. Unemployment forecast to be 5.75% for the next two years then 5.25% in 2015-16
15. $22m in advertising the NBN
16. Investing over $100 million in screening for breasts, cervical and bowel cancer, supporting critical chemotherapy medicines
17. 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
18. $300 million funding boost will allow welfare recipients earn more from paid work, study and access concessions
19. $6.2bn to be spent over 5 years from 2012-13 to support recovery efforts from natural disasters
20. Defence spending up $10 billion
21. $9.8 billion in school funding reforms outlined in the Gonski review, over six years from 2014-15
22. Almost $100 million for a new farm household allowance to support farmers in hardship
23. Minerals resources rent tax estimate down from an original forecast of $13.4 billion to $3.3 billion over the forward estimates
24. 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
25. $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
26. The average cost of a basic packet of cigarettes will increase by 7 cents in the first half of 2014.
27. $580 million in cuts to the public service

Categories: Current Affairs

Tags: 2013 Federal Budget, Federal Budget, Highlights of the Federal Budget, Wayne Swan