Australian Budget 2014 presented by Gosford Politics In The Pub

Gosford Politics In The PubPresents

“Budgeting for a Nation”

Federal Budget 2014

Primary Source:http://www.budget.gov.au/2014-15/content/downloads.htm

Debt Crisis

This budget is hoped to deliver a $389 billion deficit instead of the estimated $667 billion at the 2013-14 Mid-Year

Economic and Fiscal Outlook – by 2023-24.

($278b lower)

All Australians Contributing

Temporary Repair Levy on incomes over $180,000 (2%) until 2017

< 30's earning, learning or participating in Work for the Dole.

FTB-B Indexing pensions to the CPI increasing the Age Pension age to 70 by

2035.


Indexation of many payments and programmes will be temporarily paused, including: eligibility thresholds for Family Tax Benefit and Newstart; thresholds for the Medicare Levy Surcharge, Private Health Insurance Rebate and most Medicare Benefits Schedule fees; Official Development Assistance funding; Local Government Financial Assistance Grants; and 112 government grant programmes.


Reducing: public hospital funding education funding some Commonwealth payments Introduce fuel excise from 1 August 2014

State Funding

removing funding guarantees for public hospitals = $80 billion 'savings' by 2024-25

Reduce or terminate: National Partnership Agreements on

Preventive Health Improving Public Hospital Services Certain Concessions for Pensioners and Seniors Card Holders

State Funding

This budget sets up further future reform(2015 White Papers):

Reform of the Federation Australia’s Tax System States are sovereign in their own sphere

Education

Promises, promises...

$11.6 billion Infrastructure Growth Package $820 million to expand access to higher

education and removing fee caps $20 billion Medical Research Future Fund Incentivising businesses to employ

Australians over the age of 50 Defence funding Enhancing the protection of our borders

Welfare Payments

“...pull back payments where it

is too easy for capable and able

people neither to work nor study.

This will support the sustainability

of the welfare system as the

population ages.”

Sustainable Welfare

increasing the Age Pension age to 70 by 1 July 2035

Age Pension and Disability Support Pension indexed to inflation (from 2017)

tightening eligibility for Family Tax Benefit Part B (FTB-B), particularly where the youngest child is six years or older

Fostering a working culture

earning, learning or participating in Work for the Dole.

< 30 Newstart or Youth Allowance participate job search and employment services activities which are funded by the Government for up to 6 months before receiving the payment.

Wage subsidies

If a job seeker is unable to secure employment after six months of Work for the Dole and Newstart or Youth Allowance (Other), a wage subsidy may become available to an employer for six months.

Rather than continue looking for work, job seekers can elect to undertake training or study which may make them eligible for student benefits.

Restart @ 50

wage subsidy (Restart) to encourage businesses to employ Australians who are aged 50 and over and have been on income support for at least six months (*$10K)

Paid Parental Leave scheme with an income cap of $100,000 per annum

Medical Research

To establish the Fund, approximately $1 billion in uncommitted funds from the existing Health and Hospitals Fund will be transferred into the

Fund at its inception.

The Fund is estimated to reach the $20 billion target capital level by 2020 and the capital base is set to be preserved in perpetuity.

Co-payments

bulk‑billed patients contribute $7 per visit $5 will be reinvested in the new Medical

Research Future Fund. concessional patients, children under 16, only

pay 10 each calendar year

Asset Recycling (Privatisation)

Medibank Australian Hearing Defence Housing Australia Australian Securities and Investment

Commission Registry Royal Australian Mint Fully funded Military Superannuation

Business is good

cutting the company tax rate by 1.5% repeal the minerals resource rent tax repeal the carbon tax Exploration Development Incentive

Public Service waste reduction

reduce by 16,500 Abolished over 230 programmes 70 bodies, boards, committees and councils

abolished Systematically assessing whether

government functions should be open to competition and outsourced

Reducing regulation First 'Repeal day' in March saw: 1,000 Acts

and 9,500 legislative instruments, totalling over 50,000 pages, submitted to be abolished

two sitting days each year to further repeals To reduce green tape, the Government is

delivering a ‘one-stop shop’ for environmental approvals

Border Integrity

Operation Sovereign Borders has resulted in a $2.5 billion saving this Budget.

This Budget commits $711 million over six years to enhance Australia’s border management