2013 Budget impacts
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14th May, 2013 ECONOMY • After promising over 500 times that the 2013 Budget would be in surplus, the Treasurer says the Government has “taken the responsible course to delay the return to surplus” • Revenue in 2013-14 is over $80 billion higher than in the last year of the Coalition Government, but spending is $120 billion higher. • The deficit for 2012-13 is estimated to be $19.4 billion, instead of the $1.5 billion surplus promised. • The deficit for 2013-14 is estimated to be $18 billion and $10.9 billion in 2014-15 • $191.6 billion net Government debt for 2014-15, gross debt to hit $282 billion in 2014 and borrowing limit set to rise from its record $300 billion • Despite Labor’s claims its Budget is about jobs and growth, growth falls to 2.75 per cent and unemployment will to rise to 5.75 per cent • $43 billion “savings” over four years, of which $25 billion is new or higher taxes • Budget contains $463.9 million for “decisions taken but not yet announced” — thought to be election pork barreling • Revenue from mining tax 95% below original forecast (was to be $4 billion but only $200 million collected HOUSEHOLDS, FAMILIES AND PENSIONERS • $1.5 billion carbon tax compensation tax cuts axed • Family Tax Benefits supplements frozen for three years • $5,000 Baby Bonus payment scrapped • One off increase to the Family Tax Benefit Part A of $3,000 for the birth or adoption of the first child and $1,000 for birth or adoption of other children • Family Tax Benefit Part A only paid until the end of the calendar year a child completes school • Newstart recipients can earn an extra $19 per week before welfare payments are reduced • Childcare rebate frozen saving $105.8 million over five years • $127 million for senior citizen computer training and engagement programs CARBON TAX & ENVIRONMENT • $3.4 billion cut from carbon programs and renewable energy projects • Carbon tax revenue down by $5 billion HEALTH • $14.3 billion allocated for Disability Care scheme over seven years • Medicare Levy to rise by 0.5 per cent to 2.0 per cent to partially fund Disability Care • Cuts to the Extended Medicare Safety Net and Medical Expenses Tax Offset to save $1.7 billion over four years • Medicare bulk billing rebate for GPs frozen to save $664 million • New means test to be applied to aged care from July 2014 VETERANS, DEFENCE & NATIONAL SECURITY • Defence spending of $25.4 billion, 1.6 per cent of GDP • 1,000 civilian jobs cut • $25 million more for veterans mental health support BUSINESS • Larger companies to pay $4.2 billion extra tax • Superannuation funds to pay tax bills monthly raising $1.4 billion over four years EDUCATION & EMPLOYMENT • Funding for schools reduced by $325 million • Gonski reforms will not be fully implemented until 2019-20 • $2.2 billion cut from National Partnerships program, including $258.5 from disadvantaged schools • Universities to achieve a 3.5 per cent efficiency dividend to pay for Gonski • Tax deductions for self education expenses capped at $2,000 • Discount for up front HECS & HELP voluntary payments scrapped • Student start up scholarships to be converted to loans • School Chaplaincy Program unfunded for future • Computers in Schools program discontinued • Government budgets $21 million to promote Gonski school changes • Government budgets $74 million for pre-election advertising campaigns INFRASTRUCTURE, REGIONAL & AGRICULTURE • Road and rail funding cut from $6 billion to $4.8 billion a year • No new money for Bruce Highway upgrading • Regional Infrastructure Fund cut by $2 billion • Australian Transport Safety Bureau budget cut by $2 million to $19.82 million meaning more staff cuts and less safety investigations IMMIGRATION & FOREIGN AFFAIRS • Management of asylum seekers blows out by a further $4.7 billion — more than $10 billion blow out since 2008 • $1.9 billion cut to foreign aid budget |
