This week's Economist magazine, in a rare cover story on Australia, warns that Australia's record run of economic growth is under threat if investment in infrastructure is not improved. Noting that Australia is now "bumping up against supply-side limits", the clear message for state governments is that investment in infrastructure is essential to maintain economic growth. It's time to rebuild a city collapsing under the weight of growth
Eye on Politics & Law Lords: 2005-06 Budget At A Glance
Fiscal Outlook
_The 2005-06 Budget provides for an underlying cash surplus of $8.9 billion. This will be the Government’s eighth surplus.
_A strong budget position is being maintained while delivering further personal income tax cuts and introducing significant reforms to the welfare system, aimed at improving workforce participation.
Economic Outlook
_ Prospects for the Australian economy remain strong.
_Economic growth is forecast to be 3 per cent in 2005-06.
_The unemployment rate is forecast to remain around its generational lows.
Tax cuts
_All taxpayers will benefit from a further $21.7 billion in tax cuts over the next four years.
_The 17 per cent tax rate will be reduced to 15 per cent from 1 July 2005.
_The tax threshold for the 42 per cent and 47 per cent rates will be raised on 1 July 2005 and again on 1 July 2006.
_This means that taxpayers will not reach the highest marginal tax rate until they earn around 3 times average weekly earnings.
_The Government will abolish the superannuation surcharge on contributions and termination payments made or received from 1 July 2005 to encourage private savings.
Welfare to work
_The Government is committed to increasing workforce participation.
_ From 1 July 2006 a wider range of income support recipients will be obliged to seek work.
_Newstart Allowance will be enhanced from 1 July 2006 to improve the rewards from part-time work.
_More than $2 billion will be invested over four years to ensure that those seeking work have the necessary support services and training.
_Incentives to find work will be strengthened by a change to the compliance framework, incorporating payment suspensions.
Reduced business taxes
_The 3 per cent tariff applying to business inputs where no substitutable goods are manufactured in Australia will be removed from Budget Night. This will cost $1.3 billion over five years.
_A broader range of expenses incurred by business will become tax deductible.
Reduced business taxes
_The 3 per cent tariff applying to business inputs where no substitutable goods are manufactured in Australia will be removed from Budget Night. This will cost $1.3 billion over five years.
_A broader range of expenses incurred by business will become tax deductible.
Ensuring a sustainable health system
_Record spending on health and aged care by the Government – $45 billion in 2005-06, up from $20 billion when the Government came to office.
_$196 million over five years for the Strengthening Cancer Care initiative, including funding for additional research, screening and prevention initiatives.
_$321 million package to make dementia a national health priority. This includes 2,000 dedicated places to provide high level care for people with dementia in their own home.
_Medicare Safety Net and the PBS made more sustainable.
More support for families and carers
_ Since the last Budget, the Government has increased the maximum rate of Family Tax Benefit Part B, costing $2 billion over five years.
_The level of income allowed before Family Tax Benefit Part A is withdrawn will be increased to $37,500 a year from 1 July 2006.
_A bonus payment for carers will be paid in June 2005. $1,000 for recipients of Carer Payment and $600 for recipients of Carer Allowance.
Providing for Australia’s security
_$239 million over four years to further enhance the investigation and language skills of intelligence agency personnel.
_$522 million over four years to improve protective security, including in missions overseas.
_$580 million for additional quarantine screening.
Enhancing our international engagement
_ $1 billion aid package to Indonesia to assist with tsunami reconstruction and development efforts.
_$841 million over four years helping the Solomon Islands restore law, order and sound public finances
• Treasury provides advice to Government ministers and other services in support of 'effective government spending and taxation arrangements' Budget 2005-2006 [Barista Budget in a Nutshell: Book of Budget ; Bloggers on Budget ]
• · Glance Back: Past Budgets ; When push comes to budget, we all did it
• · · Labor splits emerge over Budget response ; A taste of Crikey's Budget coverage
• · · · Mike Steketee: An eye on day after tomorrow; Tax cuts: the difference between eating out well and a hamburger The rich, the poor, the budget
• · · · · Daniel Gross, New York Times A Perfect Storm That Could Drown the Economy ; Politicians and their staff are chronic leakers and briefers because they know how important it is to get their message across to the public via the media Off the Couch, Deeper Into the Psyche
• · · · · · Hurley and Mara had told Hatfield RI 719 was the informer. At the meeting Hatfield asked him strip to his underwear and then go for a swim. RI 719 talked his way out of it but perhaps this was the point his handlers thought things had become too risky as police on Monday raided homes throughout Sydney Insider spills beans on coke smuggling ring ; Corby team says Keelty must go