Wednesday, May 13, 2009

Budget 2009: At a glance

Budget 2009: At a glance | The Daily Telegraph

May 12, 2009 12:00am

TREASURER Wayne Swan has delivered a $57 billion deficit in a Budget that gives with one hand and takes with the other.

The Rudd Government's second financial blueprint spends an extra $11 billion to cushion the effects of recession, while clawing back an extra $2.5 billion in savings.

Malcolm Farr: Daring Budget brings generational change

Billions is to be spent on new infrastructure, including roads, rail, ports, hospitals and the national broadband network.

Parents will get 18 weeks paid leave from 2011, and pensioners will get up to $32.49 extra per week.

However, higher income earners will pay more for health insurance and enjoy fewer tax benefits on their superannuation contributions.

Families face cuts to tax benefits and the baby bonus, while the states will be asked to pay back some of their GST funding.


* Deficit of $57.6 billion in 2009-2010.

* Deficit falls to $57.1 billion the following financial year, and $28.2 billion in 2012-13.

* Deficits continue for six years until 2015-2016.

* Global Financial Crisis has cost the Government an estimated $210 billion over three years.

* Economic growth to fall by .05 per cent in 2009-10.

* Unemployment forecast to peak 8.5 per cent in 2010-2011.

* Exports to fall 4 per cent in 2009-2010.

* Government revenue down $23 billion this year, biggest downward revision since the depression year of 1930-31.

- Next financial year's write down is even bigger, at $50 billion.

* Net debt to peak at 13.8 per cent of GDP in 2012-13, before falling as the Budget returns to surplus in 2015-2016.

* States asked to hand back some GST $302 million in GST transfer payments.


* Private health insurance rebate (available to singles earning more than $75,000 per year and families more than $150,000) cut from 30 per cent and means tested.

The measure is expected to save about $1.9 billion over four years.

- Singles earning between $75,000 and $90,000, and families between $150,000 and $180,00 will get 20 per cent (rising to 25 per cent for over 65s, and 30 per cent for over 70).

- Singles earning up to $120,000 and families up to $240,000 will get 10 per cent (rising to 15 per cent for those over 65 and 20 per cent for the over 70s).

- Singles earning more than $120,000 and families above $240 will no longer be entitled to the rebate.

- The surcharge for those who do not have complying private health insurance will increase to 1.25 per cent.

- Projected savings are $1.9 billion between 2010-2011 and 2012-2013.

* Extended safety net payments for some procedures, including IVF and obstetrics, will be capped from January 1, 2010, increasing out-of-pocket expenses for patients.

The measure is expected to save around $445 million over four years.

* The Government will spend $2.5 billion over five years reforming hospital administration and changing the structure of the health workforce.

* Public hospitals will get $3.2 billion to modernise facilities, including cancer treatment and research.

* There will be $121 million for maternity services and $134 million for a program attracting doctors to rural Australia.

* NSW projects include: Blacktown Clinical School and Research Centre ($17.6 million); Napean Health Services Redevelopment ($96.4 million); Narrabri District Health Service Centre, Griffith ($27 million).


* Universities and research institutions get $2.6 billion for infrastructure.

* University places will be "uncapped", at a cost of $491 million, creating an extra 50,000 places by 2013.


* The Government has allocated $4.5 billion for its Clean Energy Initiative, part of its planned Carbon Pollution Reduction Scheme.

- Government will establish Renewables Australia, a new agency to promote renewable technology.

- Four "solar flagship" projects will be funded to demonstrate new solar technology.

Defence/National Security

* Budget commits Government to increase spending on Defence by 3 per cent per year, in line with the recent Defence White Paper, bringing annual Defence spending to just under $40 billion by 2018-2019.

* Defence efficiency drive projected to save $20 billion over 10 years, to be reinvested within the department.

* Budget provides $654 over six years to combat people smuggling, including $365 million for maritime and aerial surveillance.

* $1.7 billion in 2009-2010 ongoing funding for existing military operations Afghanistan, East Timor and the Solomon Islands.


* Budget centrepiece is a total $22 billion in planned spending on infrastructure across all portfolios.

* Road, rail and ports get $8.5 billion, including $4.6 billion for metropolitan rail projects.

- NSW receives just $91 million of that - for the Sydney West Metro, from Central Station to Westmead Hospital. (Victoria gets $3.6 billion for two major projects.)

* The Melbourne-Cairns highway corridor gets $3.4 billion.

- That includes: $1.5 billion for a Hunter Expressway, linking the F3 and New England Highway with a new dual carriageway; $618 million for a Pacific Highway bypass of Kempsey.

* Bulk commodity ports get $389 million for upgrades.

* Construction of the National broadband Network begins with initial funding of $4.7 billion, the first outlay in an estimated total cost of $43 billion, part of it provided by the private sector.

First Home Owners

* The First Home Owners Boost is extended for another three months at the full rate, and three months after that at half the full rate.

For contracts entered into before September 30, the Boost remains at $14,000 for new homes and $7000 for established ones.

(Additional to the separate, $7000 First Home Owners Scheme grant)

Between September 30 and December 31, the Boost halves to $3,500, and $7,000 respectively.

The original, separate First Home Owners Scheme grant remains in place indefinitely at $7000.

- The extension is expected to cost $539 million of four years.


* Paid parental leave to begin on January 1, 2011 as previously announced, at a cost of $731 million.

- Primary carer parents earning less than $150,000 will be entitled to 18 weeks on the Federal Minimum Wage.

- Baby bonus no longer available to parents claiming Paid Parental Leave, except in cases of multiple birth, where it is available for the first child only.

* Pension payments to increase $32.49 per week for singles on the full rate, and $10.14 for combined couples.

- The increase will cost $3.9 billion per year by 2012-2013, or $14.2 billion over four years.

* Qualification for the Age Pension to increase gradually to 67 years by 2023, increasing at a rate of six months every two yearss

* Rate at which the pension is withdrawn with private income increased to 50 cents, saving $1.6 billion over four years.

* New $600 a year Carer Supplement for all Carer Payment recipients, on top of an increase in their pension.

* The cap on tax concessions for superannuation contributions falls from $50,000 per year to $25 per year ($100,000 per year to $50,000 per year for the over 50s).

The measure saves $2.7 billion over four years.

* Super co-contribution for low-income earners will fall temporarily from 150 per cent to 100 per cent, saving $1.3 billion.

* The Small Business Tax Break for assets ordered between December 2008 and December 2009 will increase to 50 per cent.

* Payments under Family Tax Benefit A will fall, and income thresholds for Family Tax Benefit B and the baby bonus will freeze for three years, saving $2.4 billion over four years.

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