2006-07 Federal Budget (1 Viewer)

[Rafy]

Budget At a glance

Budget Speech

Budget Overview

Key points of 2006-07 budget
May 9, 2006 - 7:31PM

ECONOMIC DATA FORECASTS
- Economy to hit $1 trillion.
- $231.7b revenue, up from $222.9b last year.
- Underlying $10.8b cash surplus ($14.8b last year).
- Economic growth forecast of 3.25 per cent (2.5 per cent last year).
- CPI forecast of 2.75 per cent (3 per cent last year).

TAX
- Personal tax cuts of $36.7b over four years.
- Tax thresholds increased across the board.
- 42 per cent tax rate cut to 40 per cent; 47 per cent rate cut to 45 per cent.
- Low income tax offsets increased.
- Fringe benefits tax cut to 46.5 per cent.

SUPERANNUATION
- Tax free Super benefits for people aged 60 and over.
- Reasonable Benefit Limits (RBL) abolished.
- Pension assets test halved from $3 to $1.50 per $1000 of assets (from September 20, 2007).

MENTAL HEALTH
- $538m for Medicare-funded access to mental health services.
- $285m for mental health helpers and mentors.
- $225m for new respite care places, particularly for parents of children with intellectual disabilities.
- $192m for specialist mental health nurses.

OTHER HEALTH
- $241m for training of doctors and nurses.
- $79m to treat drug and alcohol abuse; $48m for cannabis and other drugs.
- $32m for improving retirement homes, including spot checks.

FAMILY and SENIOR ASSISTANCE
- $993m over four years in additional entitlements. Families now able to earn $40,000 (up from $33,361) before child-assistance entitlements (Family Tax Benefit Part A) are reduced.
- $887m for reform of Child Support Scheme.
- $497m for large family supplement ($248 a year to families with three or more children).
- $358m to pay for $1000 bonus payments for those who care for people with disabilities.
- $193m for one-off payments of $102.80 to elderly people to help pay household bills.
- $60m over four years to remove cap on number of outside school hours care and family day-care places.

DEFENCE
- 3 per cent annual increase in defence spending from 2011 to 2016.
- $1.9b for C-17 heavy airlift aircraft to carry combat vehicles, helicopters and supplies and for disaster relief.
- $1.5b over 10 years to increase army size and move a battalion to Adelaide.
- $250m over four years to improve recruitment and retention of soldiers.

SECURITY
- $802m for intelligence agencies over five years, including new office for ASIO.
- $644m for airport security, including terrorism response and air-cargo security.
- $355m for community policing at major airports.

BUSINESS
- $3.7b to allow businesses to claim bigger tax deductions on physical assets such as computers and machinery. The rate at which businesses can claim depreciation on assets will rise from 150 per cent to 200 per cent.
- $435 million over four years allowing small business greater access to capital gains tax concessions.

http://www.smh.com.au/news/business/key-points-of-200607-budget/2006/05/09/1146940539427.html

$37b in tax cuts focus of Budget
Workers get $7-$100 more a week
$905m boost for medical research
Four-lane Hume Highway in three years
Little to encourage women back to workforce
Plan for wide-ranging super reforms
Families $10 a week better off
Defence budget to hit record $19.6bn
Simpler, fairer tax system
Company tax rate stays at 30 per cent
$88.2 million more for ABC
Higher earners benefit

____

My general thoughts: The budget is currently being overshadowed by the Beaconsfield mine story. I doubt however, this will have much effect on subduing the political 'bounce' that usually results after feeding the electorate with billions in goodies.
A balance on spending/tax cuts must be found, so as to not trigger further interest rate rises. The RBA already posseses inflationary concerns.
I feel more harm is done to the government by an interest rate rise, than the benefits that come from tax cuts. (from a completely political/psychological point of view)
Lower Surplus than was speculated, and nothing much on childcare. Great news on Supperannuation, as Paul Keating said last night the government needed to reform the super system in recognition of the ageing population.

Its all built on the commodities boom. We can only hope it continues.

 

[yy]

there's similar thread in economic forum? i guess we can discuss more politics here
the election budget should be interesting

 

[townie]

typical, biggest tax cuts for the rich people, and some minor concescions for low income earners. no planning for the future, despite wat peter may say

 

[Sparcod]

Thanks. I need this for economics.
Surplus is at $10.8b?

 

[yy]

i like the tax cut for top income earners, because they're not actually the richest people in australia

 

[_dhj_]

typical, biggest tax cuts for the rich people, and some minor concescions for low income earners. no planning for the future, despite wat peter may say

Yep that's right it's the Libs, the idea is to advance the Conservative agenda by making the rich richer and worsening the bargaining power of workers.

 

[Sparcod]

typical, biggest tax cuts for the rich people, and some minor concescions for low income earners. no planning for the future, despite wat peter may say

You're obviously thinking where the $10.8b is going and why he's stockpiling them.

Here's how much you're getting back.
$25k - $20pw
$60k -$30 pw
$80k - $40 pw
$100k- 120 pw

$1million -$450 pw back in their pockets.

Don't know how accurate they are.

 

[Rafy]

typical, biggest tax cuts for the rich people, and some minor concescions for low income earners. no planning for the future, despite wat peter may say

It looks more focused on the middle classes than the 'rich'.
Remember those earning $50 000- $100 000 could hardly be considered rich. ( a point Beazley conceeded in his speech last week to the National Press Club.)

 

[frog12986]

Generally speaking, it appears to be a fairly sound budget... typical of Peter Costello; he certainly has a capable brain on his head.

The superannuation and tax components were positive, as were the investments in the national highway infrastructure programme and the Murray River scheme. Would have like to have seen more infrastructure development programmes, however Peter Costello made a valid point in saying that expenditure should be such that it still allows some recompense for tax payers..

Additionally, he did allude to the fact the government is aware of the vulnerability of the commodity boom, and factored this into the budget equation..

 

[townie]

Median Weekly earnings are $766 compared with $1923 for somebody on $100k per year.

it certainly isnt super-rich, but it's hardly middle incomer earners, is it now

the reason it doesnt seem rich is because every1 is spending beyond their means

edit:

i do think the super reforms are good, and the increase in the low income tax offset, but most tax relief should be for those on the median income

 

[loquasagacious]

You're obviously thinking where the $10.8b is going and why he's stockpiling them.

Here's how much you're getting back.
$25k - $20pw
$60k -$30 pw
$80k - $40 pw
$100k- 120 pw

$1million -$450 pw back in their pockets.

Don't know how accurate they are.

As a note, using your numbers the tax cut for millionaires is less than that for $25kers. To be the same as a proportion of income the millionaires would need an $800pw tax cut.

There are lots of other numbers in there too that tell the same story. Dollar terms is an inapropriate way of viewing tax cuts enough said.

 

[frog12986]

Median Weekly earnings are $766 compared with $1923 for somebody on $100k per year.

it certainly isnt super-rich, but it's hardly middle incomer earners, is it now

the reason it doesnt seem rich is because every1 is spending beyond their means

edit:

i do think the super reforms are good, and the increase in the low income tax offset, but most tax relief should be for those on the median income

Costello has made this point every year, and it should be recognised again this year. The numerical amount of the tax-cut should not be sole determinant of the measure of theextent of the cut, but the percentage of the cut to the actual income. Of course a higher income earner will receive higher tax cuts as they pay more tax in the first place..

This whole lower income v higher income earner issue is long outdated...

 

[erawamai]

Typical sound budget. It would be better if the Liberals stopped talking about 1988 and 17 percent interests rates. The national and global economic context was very different then as to how it is now. As pointed out by Keating it is the same John Howard who was treasurer in the late 70s.

Perhaps the only bone of contention, as pointed out by some of the political commentators, is the once in a generation boom which has created a massive surplus should be directed more towards the nebulous concept of 'nation building'. Regardless I think Pete has a few more tax cuts and money sweetners before the next election.

I was happy to hear that our roads will have some money thrown at them. Did anyone notice that education didn't get much of a mention?

 

[Iron]

Did anyone notice that education didn't get much of a mention?

ANU scored $125 mill. (75 gen., 50 med school)
Hurrah! Come Loq, lets go invest in hammers, or foreign beer.
Rich! Rich as Nazis!

 

[ihavenothing]

Fuck, a struggling student who is planning to get married to get a same-sex marriage and have a child with a surrogate mother and get decent childcare gets fuck all support from this budget. Fucking Liberal cunts!

 

[yy]

Fuck, a struggling student who is planning to get married to get a same-sex marriage and have a child with a surrogate mother and get decent childcare gets fuck all support from this budget. Fucking Liberal cunts!

i don't get it?

 

[banco55]

I'm Liberal, and I thought it was reasonably sound - but, as usual, middle-class welfare triumphs and the child tax benefit is increased. Seriously, there are no words as to how peeved this makes me.

But yes - it's good to have money thrown at roads, and a general tax cut can only be good news.

Yeah same. This churning bullshit where a lot of people pay out x amount and than get quite a bit back in family benefits is bs. They always have these single mothers etc. claiming that it isn't worth their while to work as they'd lose welfare benefits. That's easily fixed. Cut their welfare benefits.

 

[sped_kid01]

the budget is the biggest manipulation of stats i have ever seen

 

[frog12986]

the budget is the biggest manipulation of stats i have ever seen

Any reference to statistics is misleading as statistics themselves are the greatest manipulator of reality..

 

[kb1509]

my gosh.. and this is supposed to be my assignment.. yikes !