The Budget (2 Viewers)

[sunjet]

...11 Billion surplus ?

 

[mr_shittles]

...11 Billion surplus ?

no way, after tax cuts it will be only around 5 billion max.

 

[ohne]

I hope Costello will do away with the present income tax system which encourages tax avoidance and replaces it with a flat rate of tax in line with the company tax rate. This should be combined with a significant tax-free threshold to ensure those earning around the minimum wage do not pay income tax at all.

I would also like to see increased spending on infrastructure and less middle class welfare. There is no need to deliver a huge surplus. Something in the order of $1-2bn will do.

 

[Rafy]

Im betting on a ~$7 bn surplus.

- Tax Cuts
- A focus on families (mainly childcare etc)
- Perhaps measure to curb problems associated with the ageing population.

 

[mr_shittles]

Im betting on a ~$7 bn surplus.

- Tax Cuts
- A focus on families (mainly childcare etc)
- Perhaps measure to curb problems associated with the ageing population.

It's come in at 9 billion.

 

[Rafy]

8.7billion

 

[Rafy]

From July 1 this year:

· The 42 per cent threshold will increase to $63,001.

· The 47 per cent threshold will increase to $95,001 (compared with $80,001 announced last year).

From 1 July 2006:

· The 42 per cent threshold will increase again to $70,001.

· The 47 per cent threshold will increase again to $125,000.

Coupled with the drop in the lowest rate, this will generate tax cuts of between $6 a week for those on average earnings ($50,000) up to $87 a week for those with a taxable income greater than $125,000.

Other key features of the budget are:

· A budget surplus (cash balance) predicted for 2005-06 of $8.9 billion.

· Forecast growth of 3 per cent for 2005-06, up from 2per cent this year.

· Unemployment to reach a 28-year low, equal to 5 per cent.

· Government debt to reach a record low of $6 billion.

Other main initiatives are:

Health

· An increase of up to a $1000 a year for carers.

· New cancer screening and awareness program ($196 million).

· A $25 million campaign to stop youth smoking.

· A package of measures worth $321 million to help dementia sufferers and their carers, including 2000 new aged care at home places.

· Funding for latest chickenpox and polio vaccinations ($139 million).

· Changes in safety net provisions to limit overuse of prescription drugs.

Welfare

· $3.6 billion package to improve incentives to work for single parents, older workers and future disabled. This includes $2 billion to help welfare recipients find and keep a job.

Business

· From tomorrow, removal of the 3 per cent tariff on imports where no substitutes are made in Australia.

· Tax relief for a range of "blackhole" expenses not recognised by the Tax Office.

· Aligning capital gains tax treatment for non residents and allowing foreign tax losses to offset domestic income as an incentive to establish regional headquarters.

· A $37 million agreement to continue funding of the business entry point website.

· $6 million dollars to improve export opportunities in the US.

Employment

· Funding for 11,500 new trades and apprentice-based training.

· An increase in skilled migration places by 20,000.

Future

· Creation of a special fund to help pay for future liabilities such as public sector superannuation.

Security

· Iraq commitment of $511 million for four years.

· Increased security for overseas diplomats and missions ($522 million).

· Enhanced border protection and new passport technologies ($226 million).

· An extra $240 million to strengthen intelligence capabilities.

 

[mr_shittles]

8.7billion

Underlying cash surplus of $8.9 billion.

 

[Rafy]

and the poor!

 

[mr_shittles]

Even with all those tax cuts, there's still $8.9 billion left over. They could have spent $2.3b more on abolishing the top tax rate and another $5.2b increasing the tax free threshold to $10,000. And they would have still had $1.4 billion in surplus left over to put into that future fund.

 

[iamsickofyear12]

Pretty good job from what I've seen so far.

 

[iamsickofyear12]

Even with all those tax cuts, there's still $8.9 billion left over. They could have spent $2.3b more on abolishing the top tax rate and another $5.2b increasing the tax free threshold to $10,000. And they would have still had $1.4 billion in surplus left over to put into that future fund.

I'm sure there is a reason for that. I'm thinking its probably because they don't want it more expansionary than it is because they are already predicting 3% growth. Having some extra cash can't hurt.

 

[Rafy]

Yes its a good budget.

Overall, there is something for everybody.
Its the kind of budget you expect just before an election....

 

[mr_shittles]

I'm sure there is a reason for that. I'm thinking its probably because they don't want it more expansionary than it is because they are already predicting 3% growth. Having some extra cash can't hurt.

The level of growth announced in the budget is still at the bottom of Australia's growth targets and historically low for a non-recessionary period with record company profits. Further fiscal stimulation would not have had had an adverse impact on the economy.

 

[iamsickofyear12]

The level of growth announced in the budget is still at the bottom of Australia's growth targets and historically low for a non-recessionary period with record company profits. Further fiscal stimulation would not have had had an adverse impact on the economy.

Australia has been growing steadily for a long time. It doesn't need to grow any faster than 3%.

 

[mr_shittles]

Yes its a good budget.

Overall, there is something for everybody.
Its the kind of budget you expect just before an election....

I don't think Peter Costello has ever delivered a bad budget. They've all been fairly good since he took over. He's probably the most responsible Commonwealth Treasurer in a long time.

 

[mr_shittles]

Australia has been growing steadily for a long time. It doesn't need to grow any faster than 3%.

No, but it could and I think it should try (so long as the growth is non-inflationary).
In the 1990s Australia twice recorded Real GDP growth (ie. after inflation) of 5% and had many years of 4% growth.

 

[iamsickofyear12]

No, but it could and I think it should try (so long as the growth is non-inflationary).
In the 1990s Australia twice recorded Real GDP growth (ie. after inflation) of 5% and had many years of 4% growth.

Of course it could. And thats why they are holding back the rest of the surplus because they don't want it to grow that strongly. I think they are just trying to avoid overheating the economy and starting to get some slowdown. A constant growth rate of 3% is better than 5% followed by a drop to 1% or less than 1%.

 

[monique66]

yeah, the surplus is more a way of getting Australians to save. Thats why they had huge cut to the tax on supperannuation. If we save more then we are less inclined to buy imports, reducing our CAD. While, i think most of the budget was good and aimed at increasing productivity i don't agree with the govt's stance on education...

 

[aaaman]

and the poor!

Deus, you have to much time on your hands lol