Wayne Swan Delivers the Federal Budget

By Bizclik Editor


Treasurer Wayne Swan released the 2011-2012 Federal Budget Tuesday night, pledging to return Australia back into surplus by 2012-2013 through spending cuts and the acceleration from the mining boom.

One of the key points of Swan’s fourth budget—and Prime Minister Julia Gillard’s first—is $22 billion in cuts over four years, including a halt on the income limit on family assistance at $150,000 a year. With the $22 billion in savings, the nation is on track for surplus in 2012-2013, as promised, Swan noted.

While $4 billion of the cuts will be made in 2011-2012, the rest will be made over the next three years in welfare cuts and other smaller measures. Swan said this concurs at the same time as a rise in government revenues and an increased boost from the mining boom. Swan said, “Mining investment will rise to around 8 times the level preceding the boom to $76 billion in 2011-12, underpinned by the highest sustained terms of trade in 140 years.” The Treasury expects business investment to rise an additional 14.5 per cent in 2012-13, reaching a 50-year high as a share of GDP.

Other Federal Budget points:

  • It’s the first time in nine years that there is no income tax cut
  • The unemployment rate is forecast to fall to 4.5 per cent by mid 2013, creating another 500,000 jobs
  • Tax concessions for dependent spouses will be discontinued
  • Minors will no longer be able to claim low-income tax offsets on unearned income.
  • Mental health spending will receive $1.5 billion in funding
  • Health, education and infrastructure spending to receive $4.3 billion in regional Australia.
  • Offshore processing of asylum-seekers to get injection of $819 million extra in 2011-12
  • Defence Department cuts will make up $4.3 billion

While there will be a $49.4 billion deficit this year, the return to surplus will be $3.5 billion by 2012-2013.


Featured Articles

Nirvik Singh, COO Grey Group on adding colour to campaigns

Nirvik Singh, Global COO and President International of Grey Group, cultivating culture and utilising AI to enhance rather than replace human creativity

How Longi became the world’s leading solar tech manufacturer

On a mission to accelerate the adoption of sustainable energy solutions, US$30 billion Chinese tech firm Longi is not just selling solar – but using it

How Samsung’s US$5billion sustainability plan is working out

Armed with an ambitious billion-dollar strategy, Samsung is on track to achieve net zero carbon emissions company-wide by 2050 – but challenges persist

UOB: making strides in sustainability across Southeast Asia


Huawei smartwatch goes for gold with Ultimate Edition


How IKEA India plans to double business, triple headcount

Corporate Finance