2010 Budget impacts
|
11th May, 2010 • Budget deficit $40.8 billion — second biggest deficit in history • Increased in taxes and charges of $26 billion • Government to borrow $100 million every day to cover its spending • 25% increase in tobacco excise to raise an extra $5 billion over 4years • Last of Howard Government tax cuts implemented providing small income tax cuts for those earning above $35,000 • $10 billion increase in cost of government expenses • 32% increase in staff numbers in Department of Prime Minister and Cabinet • 20% staff increase for Australian Public Sector Commission including extra staff to assist agencies with “downsizing” • 1470 extra civilian employees for Department of Defence but 500 reduction in number of uniformed staff • $1.6 billion slashed from defence equipment purchases • Maximum childcare rebate cut from $7778 per child to $7500 and indexation frozen • Labor has already spent 76% of the capital in the 3 Infrastructure Funds created by the previous Coalition Government ($40 billion was originally committed) as Labor raids the equity for its spending sprees. Only $705 million left in $10.9 billion Building Australia Fund • $2.5 billion savings in Pharmaceutical Benefits Scheme over 5 years • Medical expenses tax offset threshold increased from $1500 to $2000 leaving people with more out-of-pocket health costs • $126 million for government advertising including $30 million for climate change (even though government has deferred its CPRS for at least 3 years) $38.5 million for Henry Review of Taxes (even though they accepted only parts of 4 out of 128 recommendations) $29.5 million for their health care package (even though government has backed down on its promise to take over hospitals from States) and $16 million for the NBN (even though the government still does not know how to build it) • $179.7 million cut to rainwater tank rebate program • Landcare cut for 3rd budget in a row — down another $10.9 million • Regional Food Production Program cut by $5.5 million (agriculture — Is not even mentioned in Treasurer’s budget speech) • $330 million brought forward for water buybacks in Murray Darling Basin • Simplified tax returns available from 2012 allowing a standard $500 deduction for work expenses • 50% concessional tax on first $1000 of bank interest from 2011 (worth just $3 a week for an average income earner with $10,000 in bank) • Fuel excise to be phased in on ethanol and LPG from 2011 • 23 extra GP super clinics even though only 2 of the 36 promised at the last election are fully operational • $500 million for a new federal heath bureaucracy even though the government backed down on its promised takeover of hospitals from the States • $1 billion to undo the roof insulation program debacle • $1 billion for cost overruns in school computer program even though number of computers to be supplied halved from election promise • BER school program slowed down and extended to 2013-14 • Government claims its new resource super tax will boost investment in resource projects by 2.1% • Export Market Development Grants Scheme under funded by at least $30 million in 2009-10 and $80 million in 2010-11 • Trade Start funding slashed requiring the closure of at least 18 offices — many in regional Australia • Not one new dollar for roads. No new money for Pacific Highway or Bruce Highway • $440 million extra funding for the Tax Office • $661 million for skills training funded by $601 million rebadged from other programs including a $456 billion cut to the Productivity Places Program • Government interest bill more than $12 million a day in 2010-11 rising to $18 million a day in 2011-12 • $10 million saved by reducing number of judicial officers at Federal Magistrates Court and Family Law Court increasing delay in hearing cases • $43.9 million cut from Family Relationship Centres forcing families to pay for counselling services or go to the Courts • Defence High Readiness Reserve slashed from 2460 personnel under the Coalition Government to 1500 • People applying for a Disability Pension will be required to apply for unemployment benefits first • Customs staff numbers slashed by 250 further reducing the number of passengers and imports subject to inspection • Centrelink staff numbers slashed by 1880 increasing delays in Centrelink queries • Government extends funding for school chaplains only until end of next year • Boys Education National Initiative axed |
