2015-16 budget overview, may 12, 2015 · overview 2 budget at a glance we are building on our...
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Overview12 May 2015
© Commonwealth of Australia 2015
ISBN 978-1-925220-53-7
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ContentsBudget at a glance 2
Preparing for future challenges 3
Economic outlook 4
Impact of iron ore on tax revenue 5
Credible path to surplus 6
Growing jobs and small business 7
Accelerated depreciation 8
Supporting small business growth 9
Helping Australians into work 10
A brighter future for Australian families 11
Access to quality care for families in need 12
Universal access to preschool 13
Healthy families and flexible care 14
Strong on multinational tax integrity 15
Making the tax system fairer 16
Reforming foreign investment 17
Fairness of benefits 18
Keeping Australia safe 19
Investigating threats 20
Connecting Australians 21
Paving the way to prosperity 22
A vision for the north and our regions 23
Helping farmers in drought 24
Australia’s free trade agreements 25
Strengthening health and aged care 26
A fairer pension system 27
Your Government online 28
Appendix A Budget aggregates 29
Appendix B Revenue and spending 30
Appendix C 2015-16 support for households 31
Appendix D Major initiatives 33
Appendix E Major savings 34
Appendix F Child care fee assistance 35
Appendix G Detailed economic forecasts 36
Appendix H Historical budget and net financial worth data 37
The 2015 Budget boosts jobs, growth and opportunity• WearebuildingonourstrongfoundationswitharesponsibleBudgetfocusedonsmallbusiness,betterchildcare
andmeasuresthatimprovefairness.
Growing jobs and small business - $5.5 billion including $5 billion of tax relief
• Supportingsmallbusinesses,withannualturnoverunder$2million,bycuttingsmallcompanies’taxrateby1.5percentandgivinga5percenttaxdiscounttosmallunincorporatedbusinesses.
• Encouraginginvestmentbyallowingsmallbusinessestoimmediatelydeducteachassetcostingunder$20,000thatispurchasedbetweenBudgetnightand30June2017.
• Reducingredtapeandunnecessaryregulationforsmallbusinesses,andsupportingstart-upsandentrepreneurship.
• Providingtargetedsupportforyoungpeoplewhohavedisengagedfromworkandstudyandareatriskoflong-termwelfaredependency.
Supporting Australian families – a $4.4 billion funding boost
• Deliveringa$3.5billionreformpackagetomakechildcaresimpler,moreaffordable,accessibleandflexible,tosupportworkforceparticipation.
• Investing$843millioninpreschoolprogrammes,toensurechildrenhaveastrongstartandabrightfuture.
• IntroducingaChildCareSafetyNettoprovidetargetedassistanceforgenuinelydisadvantagedorvulnerablefamilies.
• Atwoyeartrialofsupportforeligiblefamiliesusingnannies.
Ensuring fairness of tax and benefits
• EnsuringgreaterfairnessinAustralia’staxsystembyimplementingtheMultinationalAntiAvoidanceLawtostopcompaniesartificiallyavoidingtax,andactioningkeyrecommendationsoftheG20/OECDBaseErosionandProfitShiftingActionPlan.
• Improvingthefairnessofthetaxsystembyfightingfinancialcrime,extendingtheATO’sGSTcomplianceprogrammeandcappingexcessiveuseofsalarysacrificed‘mealentertainment’benefits.
• Strengtheningtheforeigninvestmentframeworktoensureinvestorsplaybytherulesandthatforeigninvestmentisalwaysinournationalinterest.
• Improvingthefairnessofbenefitsbyremovingdouble-dippingfromParentalLeavePayforparentswhocanalreadyaccessmoregenerousparentalleaveentitlementsfromtheiremployerandrequiringpeoplewhomoveoverseastocontinuetorepaytheirHigherEducationLoanProgrammedebt.
Protecting Australia
• Investing$1.2billioninnewfundingfornationalsecurity,buildingonthe$1billionoffundingannouncedlastyear.
• ExtendingandexpandingAustralia’smilitaryoperationsinAfghanistan,IraqandtheMiddleEast.
Progressing budget repair in a responsible, measured and fair way
• TheGovernmenthasacrediblepathtosurplus,despitea$52billionwrite-downintaxreceiptsandtheironorepricealmosthalvingsincethe2014Budget.
• Thedeficitisreducingineachandeveryyearandpaymentsasashareoftheeconomyarereducing.
2Overview
Budget at a glance
We are building on our strong foundations with a responsible Budget focused on small business, better child care and integrity
Jobs, growth and opportunityThe2015BudgetisabouthelpingAustralianshaveago.
TheGovernment’s$5.5billionJobsandSmallBusinessPackagewillhelpbusinessesinvest,hireandgrow.
A$4.4billionFamiliesPackagewillreformthechildcaresystemtomakeitsimplerandimprovetheaffordability,accessibilityandflexibilityofchildcare,tosupportparentswhochoosetoparticipateintheworkforce.
TheBudgetcontainsmeasurestobuildgreaterconfidenceandfairnessinourtaxandbenefitssystems.ThevastmajorityofAustraliansdotherightthingandplaybytherules,andexpectotherstodothesame.ChangesintheBudgettosomebenefitswillensuretheyremainsustainable.
TheGovernmentisinvestinganadditional$1.2billioninthisBudgettosupportourmilitaryoperationsandstrengthenourcounter-terrorismcapability,bothhereandabroad.
ThisbringsouradditionalinvestmentinmeasurestoprotectAustraliatoover$2billionsincethe2014Budget.
Ensuring fiscal sustainabilityTheGovernmenthasacrediblepathtosurplus,despitea$52billionwrite-downintaxreceiptsandtheironorepricealmosthalvingsincethe2014Budget.
Consistentwiththefiscalstrategy,newspendinghasbeendirectedtoinvestmentsthatboostproductivityandparticipation.
Wecanhaveamoreprosperousfutureifweplanfortomorrow,today.
Budget aggregates and major economic parameters
Outcomes
2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Real GDP 2.5 2 1/2 2 3/4 3 1/4 3 1/2 3 1/2
Employment 0.7 1 1/2 1 1/2 2 2 2
Unemployment rate 5.9 6 1/4 6 1/2 6 1/4 6 5 3/4
Consumer price index 3.0 1 3/4 2 1/2 2 1/2 2 1/2 2 1/2
Wage price index 2.5 2 1/2 2 1/2 2 3/4 2 3/4 3 1/4
Nominal GDP 4.0 1 1/2 3 1/4 5 1/2 5 1/4 5 1/2
ProjectionsForecasts
(a) Year average unless otherwise stated. From 2013-14 to 2016-17, employment, the wage price index and the consumer price index are through the year growth to the June quarter. The unemployment rate is the rate for the June quarter. The unemployment rate is the rate for the June quarter.
Actual Estimates Projections2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Underlying cash balance ($b)(a) -48.5 -41.1 -35.1 -25.8 -14.4 -6.9Per cent of GDP -3.1 -2.6 -2.1 -1.5 -0.8 -0.4
Fiscal balance ($b) -43.7 -39.4 -33.0 -23.4 -9.2 -3.2Per cent of GDP -2.8 -2.5 -2.0 -1.3 -0.5 -0.2
(a) Excludes net Future Fund earnings
3 Overview
Preparing for future challengesThe Intergenerational Report shows that we need to focus on reforms to enhance productivity and participation, and repair the budget to continue to provide the services that Australians expect
Australia’sstrongeconomicperformanceoverthepast40yearshasgreatlyenhancedourstandardofliving.
But,continuedeconomicgrowthandprosperitycannotbetakenforgranted.
The2015IntergenerationalReportprojectsthattheAustralianpopulationwillgrowandchangeinthenext40years.Australianswilllivelonger,andthenumberofAustraliansaged65andoverwillincreaseasaproportionofthepopulation.
ImprovingAustralia’seconomicperformanceandlivingstandardsinthefuturewilldependcruciallyonproductivitygrowth—thatis,workingmoreefficientlyandeffectively.Wemustalsofindwaystoboostthenumberofpeopleparticipatingintheworkforce.
The2015BudgetrecognisesthechangingshapeofAustraliaandsetsusuptotakeadvantageoftheopportunitiesthispresents.
ThisBudgetisabouttakingactionnow.Measurestosupportsmallbusinessinnovationandincreaseparticipationwithbetterchildcarewilldriveourfutureprosperity.
Continuedprogressonbudgetrepairwillensurewearebetterplacedtomeetwhateverchallengesthefuturemaybring.
Productivity will be a more important driver of economic growth in the future
0.3
-0.1
1.51.7
0.1
-0.1
1.5
-1
0
1
2
3
4
-1
0
1
2
3
4
Labour productivity Real GDP per personParticipationShare of population 15+
Percentage points Percentage points
Past 40years Next 40years
Population Participation Productivity
1.5
4Overview
Economic outlook
Strong fundamentals underpin opportunities for growth
TheAustralianeconomyisenteringits25thyearofeconomicgrowth.Thisisthesecondlongestcontinuousperiodofgrowthofanyadvancedeconomyintheworld.Anditisexpectedtocontinuetogrowevenasweadjusttotheendoftheunprecedentedboominresourcesinvestment.
Employmenthasbeengrowing,witharound250,000jobscreatedoverthepast18months.
Consumersarebenefittingfromlowerpetrolprices,electricitypricesandinterestrates.Thisisboostinghouseholdspendingandinvestmentinthehousingmarket.
TheoutlookgloballyisbrighterwithmajoradvancedeconomiesincludingtheUnitedStates,theeuroareaandJapanallexpectedtostrengthen.
IndiaisexpectedtobecomethefastestgrowingmajoreconomythisyearandwhilegrowthinChinaismoderatingfromdoubledigitratesseeninthelast10years,itisstillamajorcontributortoglobalgrowth.
ThelowerAustraliandollarwillsupportlocalbusinessestakingadvantageofthestrongerworldoutlookbymakingthemmorecompetitive,particularlyinsectorssuchastourismandmanufacturing.
Historicfreetradeagreementswillexpandopportunitiesforagriculturalexports.Australianservicesexporterswillalsogainimprovedaccesstomajormarkets,suchasChina.
ButtheeconomicoutlookpresentschallengesforthisBudget.WithgrowthinglobalcommoditysupplyrisingatthesametimeasdemandfromChinacools,pricesforourcommodityexportshavefallen.
ThefallincommoditypriceshasaffectedbusinessandhouseholdincomesandishavingasignificantimpactonGovernmentrevenues.
Our future growth will come from different sources
Previous three years Next three years
45%55%
Mining contribution Non-mining contribution
16%
84%
Mining contribution Non-mining contribution
5 Overview
Impact of iron ore on tax revenueThe iron ore price has almost halved in the last year
Theironoreindustryhasbeenakeydriverofeconomicgrowthandnationalincomeinrecenttimes.
Ironoreinvestmentandexportsdirectlycontributed15percentagepointstoeconomicgrowthoverthepastdecade,whileexportvaluesarenow14timeshigherat$75billion.
Australianowaccountsforaroundathirdofworldproductionofironore.
Ofcoursethismeansthatournationalincomeandgovernmentrevenueshavebecomemuchmoresensitivetochangesintheironoreprice.Theironorespotpricehasalmosthalvedsincethe2014Budgetasnewsupplyhascomeonline.
Meanwhile,theoutlookfordemandhassoftened,partlyreflectingtheweakeningChinesehousingmarket,whichisakeydriverofsteelusage.
Thefallintheironorepricehasbeenthelargestsinglecontributortorevenuewrite-downsoverthelastyear.SincethelastBudget,thevalueofforecastironoreexportshasbeendowngradedbyaround$90billion.
ThishascontributedtolowernominalGDPandhasreducedforecasttaxcollectionsbyaround$20billion.
Mostofthisdowngradeisfromtaxespaidbyminingcompaniesbuttherewillalsobeanimpactontaxespaidbyotherbusinesses,incometaxandothersourcesofrevenue.
Iron ore investment is falling while exports are rising The iron ore spot price has fallen
0
4
8
12
16
20
0
20
40
60
80
100
2001-02 2008-09 2015-16
Investment (RHS)
Exports (LHS)
noillib$noillib$
(f)
40
60
80
100
120
140
40
60
80
100
120
140
Jan-14 Sep-14 May-15
$US/t FOB$US/t FOB
Source: Platts
6Overview
Credible path to surplus
The deficit will reduce each and every year despite major revenue write-downs
TheGovernmenthasalreadymadeconsiderableprogressinimprovingthebudgetposition.
Overthelastyear,thebudgethasbeensignificantlyimpactedbytheironorepricealmosthalvingandpersistentlyweakwagegrowth.
Taxreceiptshavebeendowngradedby$52billionsincethe2014Budget.Over$20billionofthesewrite-downshavebeendirectlyasaresultofthefallintheironoreprice.
Despitethis,theannualaveragepaceofconsolidationremainsat0.5percentofGDPovertheforwardestimates–broadlysimilartowhatwasinthe2014Budget.
ThesizeofGovernment,measuredbythesizeofpaymentstoGDP,reducesfrom25.9percentin2015-16to25.3percentbytheendoftheforwardestimates.
Andthedeficitreduceseachandeveryyearfrom$35.1billionin2015-16to$6.9billionin2018-19.
NewspendinginthisBudgetmeetstheGovernment’scommitmenttoredirectfundingtoinvestmentsthatboostAustralia’sproductivityandparticipation.
ThisBudgetcarefullybalancestheneedforinvestmenttoenhanceAustralia’sprosperitywiththeneedtorepairthebudgetinaresponsibleandfairway.
Nevertheless,thereismoreworktodotocontinuebudgetrepairinthemediumtermandtheGovernmentremainscommittedtoreturningthebudgettosurplusassoonaspossible.
Deficits will reduce each and every year
-2.5
-2
-1.5
-1
-0.5
0
-2.5
-2
-1.5
-1
-0.5
0
2015-16 2016-17 2017-18 2018-19
Per cent of GDPPer cent of GDP
7 Overview
Growing jobs and small businessTax cuts to fuel small business investment and employment
Athrivingsmallbusinesssectorisattheheartofastrongeconomy.
Australiansmallbusinessesprovidejobsfor4½millionpeopleandproduceover$330billionofAustralia’seconomicoutput.
WeknowthehardworkingwomenandmenofAustraliansmallbusinessesaretheengineroomofoureconomy.
TheCoalitionisdeliveringforthesebusinessesnowandintothefuture.
Sincecomingtooffice,theGovernmenthasundertakenwide-rangingreformstoimprovethesmallbusinessenvironment.
Peoplenowfeelmoreconfidentaboutstartinganewbusiness,withstronggrowthinstart-ups.
The$5.5billionJobsandSmallBusinesspackagebuildsontheseaccomplishmentstohelpmakeAustraliaoneofthebestplacestostartandgrowasmallbusiness.
AttheheartoftheJobsandSmallBusinesspackageis$5billionintaxreliefforsmallbusinesseswithannualturnoverbelow$2million.
96percentofAustralianbusinesseswillbeeligibleforataxcut.
Smallcorporationswillbenefitfromhavingtheircompanytaxratecutto28.5percent.Unincorporatedsmallbusinesseswillbenefitfroma5percenttaxdiscount,upto$1,000peryear.
Allsmallbusinesseswillalsobeabletogetanimmediatetaxdeductionforawiderangeofbusinessassets.
Thesetaxcutswillputmoremoneybackinthehandsofsmallbusinessowners,andwillhelptoencourageinvestmentandemployment.
Tax cuts for all Australian small businesses
28
30
28
30
Current New
Company tax rate (%)
26 26Current New
Unincorporated 1.5% tax cut 5% tax discount*Business tax liability
*Capped at $1,000
($)
8Overview
Accelerated depreciation
The Government will provide small businesses with an immediate deduction for all individual assets costing less than $20,000
Allsmallbusinesseswillgetanimmediatetaxdeductionforeveryassettheybuycostinglessthan$20,000.Currently,thethresholdsitsat$1,000.
This$20,000limitappliestoeachindividualitem.Smallbusinessescanapplythis$20,000ruletoasmanyindividualitemsastheylike.
ThesearrangementsstartBudgetnightandcontinueuntiltheendofJune2017.
Increasingthedepreciationthresholdwillmeanimprovedcashflowforsmallbusinesses.Itwillencouragethemtobringforwardinvestmentintheassetstheyneedtogrowtheirbusinessandservicetheircustomers.
Thenewthresholdwillalsomeansmallbusinessesspendlesstimetrackingassetsacrossyearsfortaxpurposes.Thiscutsredtapeandallowsbusinessownerstofocusonrunningandgrowingtheirbusiness.
Anyassetsover$20,000canbeaddedtogether(‘pooled’)anddepreciatedatthesamerate.Theseassetsaredepreciatedat15percentinthefirstincomeyear,and30percentperyearthereafter.
Ifthevalueofthepoolisbelow$20,000untiltheendofJune2017itcanbeimmediatelydeductedtoo.
Thistemporaryjumpinthethresholdwillsupportsmallbusinessestoinvestinnewassetswhichwillhelpthemgrowandprosperintothefuture.
Immediate deductibility will encourage small businesses to invest and grow
Immediately deductible
$13,750 $16,400 $6,849$12,478
9 Overview
Supporting small business growthA package of measures to cut red tape and encourage entrepreneurship
TheJobsandSmallBusinesspackagewillremoveimpedimentstogrowthwithadditionalmeasurestocutredtapeandencouragestart-upsandentrepreneurship.
TheGovernmenthasalreadyannouncedreformswhichwillreduceredtapeburdensby$2.45billionperannum.Butthereismorestilltobedone—particularlyforsmallbusinesses,whofaceadisproportionatelyhighregulatoryburden.
TheGovernmentwillreduceredtapeintheFringeBenefitsTax(FBT)systembyensuringallsmallbusinesswork-relatedportableelectronicdevicesareFBTfree.
SmallbusinesseswillalsobenefitfromanewCapitalGainsTaxrolloverreliefwhenchangingtheirlegalstructures.
TheGovernmentwillreleaseaconsultationpaperlaterin2015onpotentialchangestotheCorporations Act toreduceanyunnecessarilyburdensomeorrestrictiveregulatoryrequirementsforsmallbusinesses.
TheTaxWhitePaperisalsoconsideringopportunitiestoreduceredtapeassociatedwiththetaxsystem,withafocusonsmallbusinesses.
TheJobsandSmallBusinesspackagealsoprovidesahelpinghandtosmallbusinessstart-upsandwillfacilitateevenmoreentrepreneurialactivity.
Streamliningbusinessregistrationprocesseswillmakeiteasiertostartanewbusiness.
Start-upswillalsobeallowedtoimmediatelydeductprofessionalexpensesincurredwhentheystartabusiness.
Removingobstaclestocrowd-sourcedequityfundingwillhelppromotesmallbusinessesaccesstofinance.ThiswillcomplementexpandedtaxconcessionsforEmployeeShareSchemes.
Government support to assist small businesses to grow, invest and employ
Jobs and Small Business Package
$5.5 billion
Accelerated depreciation$1.8 billion
Start-ups$70 million
Helping all Australians Participate$375 million
Cutting red tape
$40 million
Tax cuts$3.3 billion
10Overview
Helping Australians into workCreating the right conditions for small businesses to provide more jobs and assisting unemployed Australians to get these jobs
TheJobsandSmallBusinesspackagewilldelivertheconditionsthathelpsmallbusinessesgrowandcreatejobs.
Thepackagealsohelpsjobseekers,particularlyyoungpeopleandolderAustralians,accesstheskillsandopportunitiestheyneedtogetthesejobs.
Thepackagewillmakeiteasierforemployerstotakeonjobseekersbysimplifyingworkexperiencearrangementsandintroducinggreaterflexibilityintowagesubsidypaymentarrangements.
AreinvigoratedRestartwagesubsidywillencouragesmallbusinessestoemployolderworkers.
Newmeasureswillprovideintensivesupportfordisengagedyoungpeoplethatwillbuildtheiremployabilityandhelpmaximisetheirchancesoffindingajob.
Supportforvulnerablejobseekerswillhelpdisadvantagedyoungpeoplewithmentalhealthconcernsandyoungmigrantsintosustainablework.
Supportforearlyschoolleaversandparentswillhelpyoungjobseekersovercomechallengesandparticipateinworkorstudy.Tofullybenefitfromthissupport,jobseekersneedtomakeeveryefforttolookforwork.
Employmentservicesunderjobactivewillbemoreresponsiveandfocusedonresults.Theywillsetclearexpectationsforjobseekersbybalancingobligations,incentivesandassistance.
Anewfourweekwaitingperiodforunder25yearoldswillsettheclearexpectationthatyoungpeoplemustmakeeveryefforttomaximisetheirchancesofsuccessfullyobtainingwork.
Connecting workers with small business jobs
NOWHIRING
NOWHIRING
A new start
Just graduated, now what?
I’d like towork part time.
RestartJobactive
SupportIncentives
Restart
Jobactive
Trainees
Apprentices
Nowhiring
Workexperience
11 Overview
A brighter future for Australian familiesProviding more generous assistance for hard working families
Supporting Australian familiesThefutureprosperityofworkingfamiliesdependsonAustraliarespondingtothechangingdemographicsofourpopulationandtheeconomicchallengesweallface.
TheGovernmentisdeliveringa$4.4billionFamiliesPackagetogiveparentsmorechoiceandopportunitytowork.
Childcarewillbereformedtomakethesystemsimpler,moreaffordable,accessibleandflexible-supportingworkforceparticipationandprovidingqualityearlylearning.
Thiswillprovideopportunityandbuildastrongandmoreprosperousfuture.
Child Care SubsidyRecognisingthatGovernmentfundingofchildcareplaysavitalroleinhelpingpeoplegetintoworkandstayinwork,theGovernmentwillinvestanadditional$3.5billionover5yearsonchildcareassistance,includinganewChildCareSubsidy.
ThesimplifiedChildCareSubsidywillbeimplementedfrom1July2017withasinglesubsidybasedonfamilyincome.
TheChildCareSubsidywillprovideassistancetomeetthecostofchildcareforparentswhoareworking,lookingforwork,training,studyingorundertakinganyotherrecognisedactivitysuchasvolunteering.
Familiesearningaround$65,000orlesswillrecieveasubsidyof85percentoftheirchildcarefees(uptoanhourlyfeecap).Therewillbenoannualcapforfamiliesearningaround$185,000orless.
EligibilityfortheChildCareSubsidywillbedeterminedbyanactivitytestthatcloselyalignsthehoursofsubsidisedcarewiththeamountofwork,training,studyoranyotherrecognisedactivitysuchasvolunteeringbyparents.
An additional $3.5 billion to make child care more affordable
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1,600
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1,200
1,600
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2015-16 2016-17 2017-18 2018-19
$million$million
12Overview
Access to quality care for families in needEarly childhood education and care plays an important role in helping children with additional needs
TheGovernmentwillensurethatallchildrencanaccessqualityearlychildhoodlearningthroughtargetedsupporttogenuinelydisadvantagedandvulnerablechildren.
TheChildCareSubsidywillsupportlowincomefamilieswithatleastoneparentnotcurrentlyundertakingrecognisedactivity,toaccess24hoursofsubsidisedcareperfortnight.Thiswillbeavailabletothoseearningbelowthemaximumsubsidythresholdofaround$65,000in2017-18.
InadditiontotheChildCareSubsidy,theGovernmentwillspend$869millionontheChildCareSafetyNettoassistvulnerable,disadvantagedandadditionalneedschildren.
TheAdditionalChildCareSubsidywillcommenceon1July2017andprovidetop-upfeeassistanceto:
• childrenwhoareatriskofseriousabuseorneglect;
• familiesexperiencingtemporaryfinancialhardship;and
• familiestransitioningtoworkfromincomesupport.
From1July2017theCommunityChildCareFundwillprovidegrantstochildcareservicesto:
• removebarriersfordisadvantagedchildren,or
• childreninregionalorremoteareas;and
• makechildcareservicesmoreviable;and
• improveaffordabilityforlowincomefamiliesinhighcostareas.
TheGovernmentwillcommit$409milliontothenewInclusionSupportProgramme,whichwillcommenceon1July2016.Theprogrammewillassistfamilieswithchildrenwithadditionalneedstoaccesschildcare.
Additional Child Care Subsidy
($156 million)
Extra assistance for 'at risk'children
Community Child Care Fund
($304 million)
Increased access to child care indisadvantaged communities
Inclusion Support Programme
($409 million)
Including children with additional needs
Child Care Safety Net
13 Overview
Universal access to preschoolChildren who attend preschool in the year before starting school can benefit from improved academic performance during primary school
TheGovernmentwillinvest$843millioninthe2016and2017calendaryearsforpreschoolprogrammesacrossAustralia,toensurechildrenhaveastrongstartandabrightfuture.
Earlychildhoodisavitalperiodforlearninganddevelopment.
Accesstopreschoolbenefitsallchildrenintheyearbeforeschool,particularlydisadvantagedchildren.
TheNational Partnership Agreement on Universal Access to Early Childhood Education ensuresthatintheyearbeforeschool,statesandterritoriesprovideallchildrenwithaccesstoapreschoolprogrammeforupto15hoursaweekorfor600hoursayear,deliveredbyadegreequalifiedearlychildhoodteacher.
Investinginearlychildhoodeducationhelpsbuildaproductivesociety.Earlyeducationcantranslateintoschoolreadiness,academicsuccess,andlifetimewellbeing.Successbuildsuponsuccess.
Investing in early childhood education
14Overview
Healthy families and flexible careProtecting children from preventable diseases and providing support to eligible families who use nannies
‘No Jab, No Pay’ - Vaccinating our childrenTheGovernmentrecognisesthatmoreneedstobedonetoensureweprotectourchildrenandourcommunityfrompreventablediseases.
From1January2016,the‘NoJab,NoPay’rulewillremoveallexemptions,excludingthoseformedicalreasons,foraccesstochildcarepaymentsandFamilyTaxBenefitPartAendofyearsupplement.
Improving immunisation ratesTheGovernmentwillalsoprovidea$26millionboosttotheImmuniseAustraliaprogramme,whichwillprovideadditionalincentivepaymentsfordoctorsandimmunisationproviderstoidentifyandvaccinatechildrenintheirpracticewhoareoverdue.
Nannies TrialTheGovernmentwillspendaround$250milliononanInterimHomeBasedCarerPilotProgramme(NanniesTrial)toextendsubsidysupporttoeligiblefamiliesusingnannies.
TheNanniesTrialwillfundaround4,000nannies,providingsubsidisedcaretoapproximately10,000children.Thetrialwillcommenceon1January2016.
TheNanniesTrialwillbetargetedtoassistshiftworkers,suchasnursesandpoliceofficers,whoseirregularhoursmakeithardforthemtoaccesstraditionalchildcare.
Encouraging healthy families and flexible care
15 Overview
Strong on multinational tax integrityThe Government is committed to ensuring that businesses with economic activities in Australia pay tax in Australia
Somemultinationalcompaniesarenotpayingtheirfairshareoftax.ThisisunfairforfamiliesandAustralianbusinessesthatdotherightthing.
TheGovernmentisstrengtheningourdomesticlawstocombattaxavoidancebymultinationalsthrough:
• aMultinationalAnti-AvoidanceLawtoensurethatforeignbusinessescannotescapetheAustraliantaxnetusingcontrivedarrangements;
• closingthedigitalloopholetoensurethatGSTisappliedtodigitalproductsandservicesimportedbyconsumers;
• increasingpenaltiesfortaxavoidancebylargecompanies;and
• workingwithbusinessesonacodeforthedisclosureofthetaxaffairsofcompaniesoperatinginAustralia.
Butthisisnottheend.
Multinationaltaxationisakeyfocusforgovernmentsaroundtheworld.
TheGovernmentisworkingwiththeUnitedKingdomandtheOECDonfurthermeasurestocombatmultinationaltaxavoidance.
AustraliaisalsocontinuingitsstronginternationalleadershipinthisareabyactioningkeyelementsoftheG20/OECDBaseErosionandProfitShiftingActionPlan,developedunder
Australia’sG20presidency:
• countrybycountryreportingandbettertransferpricingdocumentation;
• newrulestoneutralisehybridmismatcharrangements;
• newpracticesthatwillpreventtreatyabuse;and
• exchangingrulingsonpreferentialtaxregimes.
ThispackagebuildsontheGovernment’srecordofstrongactiononmultinationaltaxavoidance.Itwillsignificantlystrengthenourtaxsystemandprovideastrongdeterrentfortaxavoiders.
Australian profits shifted overseas
Contract signed
Profits
$$Licence Fees
Economic activity
16Overview
Making the tax system fairerThe Government is taking steps to enhance public confidence in the integrity and fairness of the tax system at home
Improving fairnessSomeemployeesofnot-for-profitorganisationshavebeenabletosalarypackageexcessiveamountsofbenefitsthatarenotavailabletoothertaxpayers.These‘mealentertainment’benefitsincludeholidays,cruises,weddings,andmealsandalcoholinrestaurants.
Thebenefitsarenotcappedandnotreportableforfringebenefitstax,orforothergovernmenttaxandtransferpaymentincometests.Thesebenefitswillnowbesubjecttoanewgrossed-upexemptioncapof$5,000,whichimprovesfairnessinthetaxationsystem.Theseworkerswillstillretainaccesstogenerousconcessions.
Doing the right thingTheGovernmentwillprovide$265.5milliontotheAustralianTaxationOffice(ATO)overthreeyearstoextendtheGSTcomplianceprogramme.
WhiletheGovernmentrecognisesthatmosttaxpayersdotherightthing,theATOwillcontinueaseriesofcomplianceactionstomakesurehonestbusinesseshavealevelplayingfield.ThisprogrammewillallowtheATOtocontinuetoidentifyfraudulentGSTrefunds,underreportingofGSTliabilities,failuretolodgeGSTreturnsandoutstandingGSTdebts.
Fighting financial crimeTherearesignificantrisksaroundinvestmentandfinancialmarketfraud,superannuationandtaxfraudandcyberandidentitycrimesinAustralia.Theproblemisbroaderthananyindividualagencyorjurisdiction.
TheGovernmentiscreatingataskforcetofightseriousfinancialcrime.Weneedacoordinatednationalpartnershipoflawenforcementandregulatoryagenciesthatwilldevelopinter-agencyintelligenceandconductoperationstotargetnationallysignificantseriousfinancialcrimeandtaxevasion.
A coordinated approach to fighting financial crime
Australian Taxation Office
Co-ordinating information exchange to
tackle financial crime
Australian Securities and Investments Commission
Australian Federal Police
Australian Customs and Border
Protection Service
Australian Transaction Reports and Analysis
Centre
Australian Crime Commission
Commonwealth Director of Public Prosecutions
Attorney-General's Department
17 Overview
Reforming foreign investmentStrengthening Australia’s foreign investment framework
TheGovernmentiscommittedtostrengtheningAustralia’seconomy.Toachievethis,foreigninvestmentisessentialandthatiswhytheGovernmentwelcomesallforeigninvestmentthatisnotcontrarytoournationalinterest.Australiaisopenforbusiness,withforeigninvestmentapprovalgrantedfor$167billionofproposedinvestmentin2013-14,up23.4percenton2012-13.
Enforcing the rules Arobustregulatoryframeworkreflectingchangingdemandsisessentialtomaintainingcommunitysupportandawelcominginvestmentenvironment.On2May2015,theGovernmentannouncedapackageof
measurestostrengthentheforeigninvestmentframeworktomakesuretherulesareenforced.
TheATOwillbegivenresponsibilityforregulatingforeigninvestmentinresidentialrealestate,includingstrongerenforcementoftherulessupportedbyenhanceddatamatchingsystems.
Therewillbeadditionalandstricterpenaltiestoensureforeigninvestorsandintermediariesdonotprofitfrombreakingtherules.
Theintroductionofapplicationfeesonallforeigninvestmentapplicationswillimproveservice
deliveryandensureAustraliantaxpayersarenolongerfundingtheadministrationofthesystem.
More scrutiny and transparencyTheGovernmentisalsodeliveringonitscommitmenttoincreasescrutinyandtransparencyaroundforeigninvestmentinagriculture,loweringscreeningthresholdsforagriculturallandandagribusinessandimplementingacomprehensiveregisterofforeignownershipinland.
TheGovernmentisconsultingfurtheronoptionstoensureAustraliahasamodern,streamlinedforeigninvestmentsystem.
Strengthening Australia’s foreign investment framework
ATO screening and enforcement
of residential real estate
New and stricterpenalties
Application fees on all proposed
investments
Lower agricultural and agribusiness
thresholds
Comprehensive foreign ownership
of land register
Modernisationand simplification
18Overview
Fairness of benefits
The Government is strengthening the integrity of our welfare system to ensure that it remains fair and sustainable
TheGovernmentisupgradingourwelfarepaymentsystem,targetingassistancetothosemostinneed,improvingcompliance,andensuringthatsocialobligationsaremet.
Thesemeasureswillresultinanetsavingofaround$3.5billionovertheforwardestimates.
Transformation programmeWewillinvestaninitial$60milliontokickstarttheWelfarePaymentInfrastructureTransformationtoupgradetheDepartmentofHumanServices’(DHS)informationtechnologytomeetthedemandsoftoday’sdigitalworld.
Welfare system integrity TheGovernmentwillreturnaround$1.5billiontothebudgetbyincreasingDHScapabilitytodetect,investigateanddetersuspectedwelfarefraudandnon-compliance.
TheGovernmentwillalsoimprovethefairnessoftheHigherEducationLoanProgrammebyrecoveringdebtsfromAustralianslivingandworkingoverseaswhohavereceivedtaxpayerfundedloansfortheireducation.ThenewarrangementswillimposerepaymentobligationsonAustralianslivingoverseasonthesametermsthatcurrentlyapplytoresidents.
Wewillremovedouble-dippingfromParentalLeavePay(PLP)from1July2016.PreviouslyindividualscouldreceivetaxpayerfundedPLPinadditiontoanyemployer-providedparentalleaveentitlements.
AccesstoPLPwillnowbelimitedtoindividualswhoseemployerdoesnotprovideparentalleaveentitlements.Incaseswhereindividualsgetlessgenerousparentalleaveentitlementsfromtheiremployer,theGovernmentwilltopuptheamountpaidtobeequaltothefullamountavailableundertheexistingscheme.
Strengthening the integrity of the welfare system
Improve compliance Ensure social obligations are met
Target assistance to those most in need
Upgrade welfare payment system
19 Overview
Keeping Australia safe
The Government is committed to protecting Australians from the threat of terrorism
TheGovernmentisdoingeverythinginitspowertokeepAustralianssafeandsecure.
Countering terrorism TheGovernmentisinvesting$1.2billioninnewfundingfornationalsecurityinthisBudget,buildingonthe$1billionoffundingannouncedlastyear.
Theeffectofnewmeasureshasalreadybeenfelt,withgreatercoordinationandnewfrontlinepersonnelandequipmenthelpingtoprotectAustraliansfromharm.
InthisBudget,theGovernmentwillinvest$450millioninnewintelligencemeasurestoprotectAustraliaandAustralians.
$296millionwillbeinvestedinnewinformationtechnologycapabilitiesforourintelligenceagencies,tohelpthemtocollectanduseinformationmoreeffectively.
$131milliontoassistthetelecommunicationsindustrytoupgradeitssystemstoimplementtheGovernment’smetadataretentionpolicy.
Lawenforcementagenciesusemetadatatodetectandprosecuteseriouscrimes,includingterrorismandcrimesagainstchildren.
$22millionwillbeprovidedtocombatextremistpropagandaontheinternetandsocialmedia.
Defence operationsInthisBudget,$750millionhasbeenprovidedtoextendandexpandAustralia’smilitaryoperationsinAfghanistan,IraqandtheMiddleEast.
AustralianpersonnelinIraqareplayingakeyroleincounteringviolentextremismatitssource.$382millionwillbeprovidedtocontinueourinvolvementwiththeinternationalcoalitionassistingIraq.
Australiawillprovide300personneltotrainandrebuildtheIraqisecurityforcesaspartoftheBuildingPartnerCapacitymission.
Dedicated funding for counter terrorism has been increased
0
200
400
600
800
1,000
0
200
400
600
800
1,000
2001
-02
2002
-03
2003
-04
2004
-05
2005
-06
2006
-07
2007
-08
2008
-09
2009
-10
2010
-11
2011
-12
2012
-13
2013
-14
2014
-15
2015
-16
2016
-17
2017
-18
2018
-19
$million$million
Additional funding
Baseline funding
20Overview
Investigating threats
The Government’s new data retention policy will help our security agencies keep the Australian community safe
TheGovernmenthasenactedlegislationtorequiretelecommunicationsserviceproviderstokeepfortwoyearscertaininformation(‘metadata’)generatedbytheirusers.
Helping our agenciesRetainingmetadataisavitalstepinkeepingussafefromrapidlyevolvingthreats.
Accesstometadataisessentialtomostcounter-terrorisminvestigationsandhelpsoursecurityagenciespreventterroristactsandprosecutethosewhoseektocommitthem.
Italsoplaysakeyroleindetectingandprosecutingotherseriouscrimes,includingcrimesagainstchildren.
ThesechangesareinlinewiththerecommendationsoftheParliamentaryJointCommitteeonIntelligenceandSecurity.
Privacy protectionsOnlyapprovedofficersinlawenforcementagencieswillbeabletoaccessmetadata.
TheCommonwealthOmbudsmanwillhaveresponsibilityforprovidingoversightinrelationtoenforcementagencies’accesstoanduseoftelecommunicationsdatatoensurethisinformationisnotmishandledorusedinappropriately.Therearealsospecificprotectionsinplacetoprotectjournalistsandtheirsources.
Investment in securityThe$131millionprovidedbytheGovernmentformetadataretentionrepresents50percentofthecapitalcoststobebornebyindustry,asestimatedbyPwC.
Inaddition,$23millionwillgotorelevantagenciessuchastheAttorney-General’sDepartmentandtheAustralianCrimeCommissiontocoverongoingcostsrelatingtotheimplementationandoversightofthedataretentionscheme.
Ensuring the safety of the Australian community
Data Retention
User
Metadata
21 Overview
Connecting Australians
The Government is delivering on its commitment to build infrastructure to support economic growth, create jobs and link businesses to markets
TheGovernment’s$50billioninfrastructurecommitmentisimprovingroadandraillinkagesineverystate.
TherightinfrastructurewillsupportAustralia’seconomicgrowthinthenearterm,andboostproductivityoverthemediumtolongterm.
TheAssetRecyclingInitiativeisfreeingupstatestoinvestinarangeofproductiveinfrastructure.Thetwoagreementssignedsofar-withNewSouthWalesandtheAustralianCapitalTerritory-willgeneratemorethan$15billionofadditionalinfrastructureactivity.
PlanningfortheWesternSydneyairportatBadgerysCreekiscontinuing.Workhascommencedonthe$3.6billionWesternSydneyInfrastructurePlan.
TheGovernmentisdeliveringtheNationalBroadbandNetworkfasterandatlesscosttotaxpayers.SinceSeptember2013,theNBNhasmorethantripledthenumberofhomesandbusinessesthatreceiveaservice.
Morethan413,000premisesarenowconnected,withananticipated3.1millionhomesandbusinessestohavetheNBNinplaceorunderconstructionbySeptember2016.
TheGovernmentisalsoprogressingits$100millionMobileBlackSpotsProgramme,withthefirstbasestationsundertheprogrammeexpectedtorolloutinthesecondhalfof2015.
TheGovernmentisensuringthatinfrastructureregulatorysettingssupportandpromotecompetition.FollowingthereleaseoftheNationalInfrastructureAudit,InfrastructureAustraliawillworkona15yearpipeline.Thiswillgivecertaintytoindustryandhelpensurepublicfundingisusedtodeliverthebestinfrastructureattherighttime.
TheHarperCompetitionReviewhasprovidedablueprintforfurtherreformsthatwillensurebusinessesandconsumershaveaccesstogreaterchoiceandbetterservicelevels.
WA
NT
SA
QLD
NSW
VIC
TAS
ACT
$0.6 billion
43,500 prem
$7.6 billion
639,500 prem
$0.3 billion
98,800 prem
$1 billion
171,100 prem
$2 billion
253,400 prem
$15 billion
917,000 prem
$13.4 billion
575,200 prem
$5.2 billion
388,300 prem
The Government has a $50 billion package to 2020 for transport infrastructure to improve road and rail linkages in every state. This includes a $3 billion commitment to East West Link.National Broadband Network construction underway by September 2016.
22Overview
Paving the way to prosperityDelivering the Infrastructure Growth Package
TheGovernmentiscontinuingtodeliverthevitalinfrastructurethatAustralianeedsandhasseenworkstarton19newmajorprojectsin2014.Another55willstartconstructionin2015.
Majorworkhascommencedonthe$3billionNorthConnexproject.Itisexpectedtocreate8,700jobsforNewSouthWales.ItisthesecondmissinglinktobestartedbythisGovernment,aftertheM5WestwideningwhichwascompletedinDecember2014.
EarlyworksonWestConnexalsocommencedthisyear.Thisprojectisexpectedtodeliver$20billionineconomicbenefitsandcreatearound10,000jobs.
TheCommonwealthGovernmentremainscommittedtoimprovingMelbourne’sconnectivity,includinganongoingcommitmenttoprovide$3billioninfundingforanyVictorianGovernmentthatbuildstheEastWestLink.
NumerousmajorprojectsinQueenslandarebeingdeliveredonschedule,includingtheBruceHighway,theToowoombaSecondRangeCrossingandtheGatewayMotorwayNorth.
EarlyworksstartedontheTorrensRoadtoRiverTorrensprojectinSouthAustraliain2014andmajorworksbeginin2015.TheNorth-SouthRoadCorridorwillreceivecloseto$1billionoffunding.
Constructionofthe$1billionGatewayWAProjectisexpectedtobecompletedbymid2016.ThePerthFreightLinkwillcommenceconstructioninearly2016.IntheBudget,afurther$499millionwasprovidedforroadinfrastructureinWAfollowingaGSTrevenueshortfall.
IntheNorthernTerritory,theGovernmenthasconstructedthefirstsectionofthe$103millionTigerBrennanDriveduplication.
WorkontheMidlandHighwayinTasmaniaiscontinuing,withanadditionalfivesafetyprojectstobecompletedbyMay2015.
Over70bridgeswillbeupgradedundertranche1oftheBridgesRenewalProgrammeand95newprojectsundertheBlackSpotProgrammein2015-16.
Delivery of Major Roads
ON TIME ON BUDGETDelivery of major projects by 2020 Commonwealth Funding
Pacific Highway
WestConnex Stages 1 and 2
Toowoomba Second Range Crossing
North-South Road CorridorPerth Freight Link
Gateway WA
NorthConnex
$5.6b$1.5b
up to $1.285b
$944m$866m$675m$405m
Up to $2bn concessional loan
Gateway Motorway North up to $1b
23 Overview
A vision for the north and our regionsThe Government is encouraging businesses to invest, expand and create jobs in Australia’s regions
Northern AustraliaAstrongnorthmeansastrongnation.
TheGovernmentwillestablisha$5billionNorthernAustraliaInfrastructureFacilitythatwillbeavailableformajorinfrastructureprojectslikeports,railways,pipelinesandelectricitygeneration.
Wewillalsoprovide$100milliontoimprovetheroadsandsupplychainsinvolvedingettingcattletomarket.
TheGovernmentisworkingtofinaliseitsplanforthenorth.ThefirsteverWhitePaperonDevelopingNorthernAustraliawillbereleasedlaterthisyear.
National Stronger Regions FundThe$1billionNationalStrongerRegionsFundcommencedrolloutin2014,selectingthebestofover400projectsfromacrossthecountry.
Aspartofthefirstroundoffunding,announcedinMay2015,over$210millionwasmadeavailablefor51projects.RoundTwoisexpectedtoopeninMay2015.
Thefundwillenhancetheeconomicgrowth,activityandoutputofourregionsandsustainthesegainsintothefuture.TheGuidelinesarecurrentlyunderreviewforRoundTwo.
Growing, and investing in, TasmaniaTheGovernmentisdeliveringoncreatingastronger,morecompetitiveTasmanianeconomy.
TheGovernmenthasinvested$60millioninTasmanianirrigationschemesandafurther$203milliontoexpandtheTasmanianFreightEqualisationSchemetoincludeexports.
TheseschemeswillgeneratejobsandhelpTasmanianbusinessestobemorecompetitiveinglobalmarkets.
Nearly 7 million Australians live in rural and regional areas
About 2/3 of export earnings are from regional areas
Agriculture
Tourism
Retail & Services
Manufacturing
Regional Australia has a diverse range of industries such as
Resources
Opportunities for Regional Australia
24Overview
Helping farmers in droughtHelping farmers to manage through and recover from drought
Drought assistanceTheGovernmentiscommittedtosupportingfarmerswhoaresufferingthroughtheeffectsofdrought.
Wewillprovide$250milliontocontinuetheDroughtConcessionalLoanSchemeandtheDroughtRecoveryConcessionalLoanSchemeforoneadditionalyear.
Wewillalsoprovide$25millionfrom2015-16toassistfarmerstoreducetheimpactofpestanimalsindrought-affectedareas.
Supporting investmentToencouragedroughtpreparedness,theGovernmentwillprovideanimmediatetaxdeductionforwaterfacilitiesandallowfarmerstodepreciateoverthreeyearscapitalexpenditureonfodderstorageassetsfrom1July2016.Additionally,wewillallowfarmerstoimmediatelydeductthecostoffencingfrom1July2016.
Suporting communitiesWehaveallocated$35millionforagrantsprogrammetofundcivilandcivicinfrastructureprojectsindroughtaffectedareas.Projectsmayincludesocialandculturalinfrastructure,townfacilitydevelopmentsandwaterinfrastructure.
Supporting familiesIn2015-16,$20millionwillbeprovidedtoextendexistingsocialandcommunitysupportservicesforfarmersto70localgovernmentareasthatareexperiencingasevereandprolongedrainfalldeficiency(upfrom50in2014-15).TheGovernmentwillalsoprovide$1.8milliontofund10additionalcounsellorsundertheRuralFinancialCounsellingService.
What does this mean for farmers?
Douginstalls25kilometresoffencing,atacostof$25,000,onhiscattlefarmin2016-17.Currently,heisabletodepreciatehisfencingcostsover30yearsandclaimsadepreciationdeductionof$833eachyear.
Now,Dougwillbeabletodeductthefullcostof$25,000inthe2016-17incomeyear,givinghim$24,167moreintaxdeductionsinthefirstyear.TheadditionaldeductionsmeanthatDoughastopaylesstaxin2016-17ifhemakesaprofit.AssumingDoug’smarginaltaxrateis39percent,includingtheMedicareLevy,histaxliabilitywouldbereducedby$14,742,meaninghewillhavemoretospend,investorpayoffdebt.
25 Overview
The economy will see key benefits from the Government’s recently completed free trade agreements
Australia’s free trade agreements
TheGovernmenthasrecentlycompletedthreehistoricfreetradeagreements(FTAs)withChina,JapanandKorea–ourthreelargestexportmarkets.TheseFTAsinvolvetariffreductionsworthover$6billion.
TheFTAswillhelpattractinvestmentinAustralia,makekeyindustriesmorecompetitiveandincreaseopportunitiesforAustralianbusinesses.Thiswillhelpdrivegrowth,increaseproductivecapacityandcreatejobs.TheseFTAsalsostrengthenAustralia’seconomiclinkswiththedynamicNorthAsiaregion.TheFTAsachieveimportantreductionsintariffsandothertradebarriersinkeymarkets,drivingimprovedaccesstointernational
marketsforAustralianexporters.ThesereducedtradebarriersmakeAustralianexports–includingfromkeyAustralianindustriessuchasagriculture,resourcesandmanufacturing–relativelycheaperandthereforemorecompetitive.
SuchreductionsintradebarrierswillalsohelpboostthecompetitivenessofAustralianexportsintheservicessector,whichmakealargecontributiontoAustralia’soverallexports. Forexample,theChina-AustraliaFTAwillenableAustralianservicesproviderstogainnewaccesstoChina’sgrowingandalreadysignificantservicessector–thelargestcontributortoChina’sGDP.
Finally,reciprocalreductionsintariffsandothertradebarriersinAustraliawillprovideconsumerswithagreatervarietyofgoodsandservicesatlowerprices.
Forexample,Toyotaannouncedsavingsofupto$1,000ontheCorollaHatchasaresultofourFTAs.
The China-Australia FTA will reduce Chinese tariffs on a range of Australian exports
Product Current tariff Tariff under the FTA
Beef 12-25% Phased to 0% in 9 years
Wine 14-20% Phased to 0% in 4 years
Dairy 10-19% Phased to 0% in 4 to 11 years, depending on the product
Manufacturing example:
Microphones 10% Phased to 0% in 4 years
26Overview
Strengthening health and aged careThe Government is improving the quality and efficiency of health spending and delivering greater choice in home care services for older Australians
Building a healthier MedicareToimprovethesustainabilityofMedicareintothefuture,theGovernmentwillestablishataskforcetoreviewMedicareBenefitsSchedule(MBS)itemsoverthenexttwoyears,toensurepatientsreceivehighqualityandcosteffectivemedicalservices.
APrimaryHealthCareAdvisoryGroupwillinvestigatenewfundingmodelstodeliverbettercare,particularlyforchronicconditions.
My Health RecordTheGovernmentwillinvest$485milliontoimprovetheelectronichealthrecordsystemforallAustralians.
Access to medicinesTheGovernmentiscommittedtomaintainingaffordable,sustainableaccesstomedicinesthroughthePharmaceuticalBenefitsScheme(PBS)andisinthefinalstagesofnegotiationswithindustryonreformstopricingandremunerationacrossthesupplychaintounderpinthefuturesustainabilityofthePBS.
TheBudgetwillalsoprovide$1.6billionfornewandamendedlistingsonthePBS,includingmoreeffectivetreatmentsforcancer.
Medical researchTheGovernmentwillprovidedistributionsof$10millionin2015-16fromtheMedicalResearchFutureFund,withmorethan$400millionexpectedtobeprovidedtoresearchersoverthenextfouryears.
Aged care reformTheGovernmentissignificantlyreforminghomecareservicesdeliveredtoolderAustralians.
From1February2017,fundingwillbeallocatedtotheconsumerbasedontheircareneeds.Thiswillallowconsumersgreaterchoiceindecidingwhoprovidestheircareandincreasecompetitionamongproviders.
Strengthening Medicare
Electronic healthrecords
Aged care reform
Improvingquality and
choice inhealth andaged care
Clinical reviews of MBS itemsInvestigating new funding models todeliver better care
Improve the electronic health record systemfor patients and health care providers
Trial arrangements to increase participation
Better delivery of home care services
Improving consumer choice and quality in aged care
27 Overview
A fairer pension system
Targeting pensions to those who need it most
TheAgePensionisourlargestwelfarepayment,totallinganestimated$44billionin2015-16.Wealsoprovideotherpensionequivalentpayments,including$17billioninDisabilitySupportPension.
TheAgePensionprovidesasafetynetforolderAustralians,butitisonlyonepillarofourretirementincomesystemwhichincludessuperannuationandvoluntarysavings.Asourpopulationages,weneedtoensurethepensionsystemissustainableandfair.
A fair pension systemFrom1January2017,theassetfreeareaforpensionerswillincrease,allowingaround170,000pensionerswithmoderateassetstoreceiveafullorincreasedpension.Atthesametime,theassettesttaperratewillincreasefrom$1.50to$3.Thismeansforevery$1,000ofassetsovertheassetfreethreshold,thepensionratewillreduceby$3afortnight.
Currently,pensionerswithsubstantialassetscanstillgetapartpension.Withoutchanges,asinglehomeownercouldholdassetsuptoaround$800,000andcouplehomeownerscouldholdassetsuptoaround$1.2million,inadditiontotheirfamilyhomeandstillbeeligibleforapartpension.
ThechangesintheBudgetrequirethosepensionerswithsubstantialmeanstodrawonslightlymoreoftheirassetstomaintaintheircurrentincomelevelsinretirement,whiletheGovernmentcontinuestosupportthosewhoneeditmost.
Inaworstcasescenario,thiswouldmeana1.8percentannualdrawdownontheirassets.
Asaresult,theGovernmenthasdecidednottoproceedwiththe2014BudgetmeasuretoindexpensionandpensionequivalentsbyCPI.
Duetothesechanges,thosewhonolongerreceiveapensionwillremaineligibleforaCommonwealthSeniorsHealthCardorHealthCareCard.
Maintaining a strong Age Pension system
CONCESSION
2.4 million age pensioners Spending of over$40 billion a year
Greater benefits throughthe Medicare Safety Net
& PBS concessions
Other Commonwealthconcessions
Home care & supportand residential care services
28Overview
Your Government online
Government services need to be smart, efficient and ready for the digital age
Intoday’sdigitalworld,peoplehavecometoexpectconvenientaccesstoservicesatatimethatsuitsthem.
TheGovernmentisdeliveringtheNationalBroadbandNetworkfasterandatlesscost,toenableallAustralianstoconnecttotransformativeservicesonline.
Mostindustriesnowundertakemorethanhalftheirtransactionsonline.
TheGovernmentmustbeattheforefrontofmovingitsservicestodigitalchannels.
ThatiswhytheGovernmentisinvesting$254.7millionintheDigitalTransformationAgendatotransformgovernmentservicedelivery.
ThisincludestheestablishmentofaDigitalTransformationOfficetodrivetheAgendaandensurethatGovernmentservicesaresimplerandeasiertouseandcanbecompletedfromstarttofinishonline.
ThefirstphaseoftheAgendawillincludeprovisionsto:
• implementaDigitalServiceStandardtoapplytoallGovernmentagenciestomakeservicessimpler,fasterandeasiertouse;
• designanddelivermoremyGovserviceswithanimproveddigitalinbox,‘tellusonce’services,andanewdigitalaccountforbusinessesthatcanbeaccessedusingmyGov;and
• asimpler,moreconsistentandefficientgrantsadministrationprocessacrossgovernment.
TheAgendawillalsoincludetheimplementationofaStreamlinedBusinessRegistrationserviceannouncedintheJobsandSmallBusinesspackage.Thiswillsimplifytheprocessofregisteringabusiness.
NON - DIGITAL
DIGITAL BY DESIGN
The Digital Transformation JourneyThe Current Experience Future Benefits
USER EXPERIENCENOW
Inconvenient, time consuming andpoor user experience
RED TAPENOW
Interactions must berepeated across agencies
GOVERNMENTNOW
High-cost interactions
RED TAPE
Quicker interactions online make services more convenient and offer a better user experience
USER EXPERIENCEFUTURE
Reduced work throughmore simple and fewer
duplicated actions required
FUTURE
Lower cost through less manual handling andgreater sharing of platforms
GOVERNMENTFUTURE
Paper - Face to Face and Telephony
USERNEEDS
29 Overview
The table below shows the main cash and accrual budget aggregates for the Australian Government general government sector over the period 2013-14 to 2018-19. The underlying cash deficit is estimated to be $35.1 billion in 2015-16. The fiscal deficit is estimated to be $33 billion.
Budget aggregates
ProjectionsEstimatesActual2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 Total (a)
$b $b $b $b $b $b $b6.931,22.8846.3545.2240.8933.7733.063stpieceR
2.527.422.420.425.328.22PDG fo tnec reP
2.542,21.1943.4649.4448.9240.5144.604)a( stnemyaP3.523.525.529.529.527.52PDG fo tnec reP
Net Future Fund earnings 2.3 3.4 3.3 3.4 3.7 4.0 17.8
Underlying cash balance(b) -48.5 -41.1 -35.1 -25.8 -14.4 -6.9 -123.44.0-8.0-5.1-1.2-6.2-1.3-PDG fo tnec reP
3.091,23.1052.6644.3344.5041.4839.373Revenue9.524.528.425.429.326.32PDG fo tnec reP
7.872,24.9948.1747.2545.4343.0248.314Expenses8.527.529.522.622.622.62PDG fo tnec reP
Net operating balance -39.9 -36.2 -29.1 -19.2 -5.6 1.9 -88.4Net capital investment 3.8 3.1 3.9 4.2 3.6 5.1 19.9
2.801-2.3-2.9-4.32-0.33-4.93-7.34- ecnalab Fiscal2.0-5.0-3.1-0.2-5.2-8.2-PDG fo tnec reP
Memorandum item:Headline cash balance -52.5 -43.2 -44.8 -43.9 -24.7 -17.3 -173.8
(a) Equivalent to cash payments for operating activities, purchases of non-financial assets and net acquisition of assets under finance leases.
(b) Excludes net Future Fund earnings
Appendix A
30Overview
Appendix A
Revenue and spending
Total revenue for 2015-16 is expected to be $405.4 billion, an increase of 5.5 per cent on estimated revenue in 2014-15. Total expenses for 2015-16 are expected to be $434.5 billion, an increase of 3.4 per cent on estimated expenses in 2014-15.
Where revenue comes from (2015-16)
Where taxpayers’ money is spent (2015-16)
Appendix B
Individuals income tax, $194.3 billion
Fringe benefits tax, $5.0 billionSuperannuation taxes, $9.2 billion
Company and resource rent taxes, $71.2 billion
Sales taxes, $61.6 billionFuels excise, $17.9 billion
Other excise, $7.0 billionCustoms duty, $9.5 billion
Other taxes, $4.4 billionNon-tax revenue, $25.3 billion
Social security and welfare, $154.0 billion
Other purposes, $85.7 billion
Health, $69.4 billion
Education, $31.9 billion
Defence, $26.3 billion
General public services, $22.2 billion
All other functions, $45.0 billion
31 Overview
2015-16 support for householdsEstimated tax and government assistance for various family types in 2015-16
Appendix C
Family type Private income(a)
Government assistance(b)
Income tax paid(c)
Disposable income(d)
Net income tax liability(e)
Full time taxpayer contribution(f)
Sole Parent
Onedependant,aged<6 $60,000 $20,179 $12,147 $68,032 -$8,032 0.4
Twodependants,aged<6 $30,000 $38,838 $2,534 $66,304 -$36,304 1.9
Twodependants,aged6-13 $40,000 $21,371 $4,147 $57,224 -$17,224 0.9
Single income couple
Onedependant,aged<6 $60,000 $7,630 $12,147 $55,483 $4,517 -
Twodependants,aged6-13 $100,000 $6,781 $26,947 $79,834 $20,166 -
Threedependants,oneaged<6andtwoaged6-13 $80,000 $24,644 $19,147 $85,497 -$5,497 0.3
Dual income couple
70:30incomesplit,onedependant,aged<6 $80,000 $11,704 $11,674 $80,030 -$30 -
70:30incomesplit,twodependants,oneaged<6oneaged6-13
$80,000 $17,001 $11,674 $85,327 -$5,327 0.3
70:30incomesplit,threedependants,oneaged<6,twoaged6-13
$80,000 $25,233 $11,674 $93,559 -$13,559 0.7
50:50incomesplit,onedependant,aged<6 $100,000 $3,201 $17,094 $86,107 $13,893 -
50:50incomesplit,twodependants,oneaged<6,oneaged6-13
$100,000 $20,499 $17,094 $103,405 -$3,405 0.2
50:50incomesplit,twodependants,aged6-13 $60,000 $13,434 $4,794 $68,640 -$8,640 0.5
TheGovernmentprovidesarangeoffurtherpaymentsandassistance,including:
• RentAssistance
• HealthCareCardsandassociatedsubsidiesformedications
• FamilySupportProgramme
• Assistanceforcarers
• HomeandCommunityCare
• AgedCare
32Overview
Appendix C
Estimated tax and government assistance for various family types in 2015-16
Appendix C
(a)Privateincomecomprisesincomefromworkandothersources(butnotgovernmentassistance).Somerecipientsworkparttime.(b)Governmentassistanceincludesincomesupportpayments(forexample,Newstart,AgePensionandParentingPayment),familypayments(forexample,FamilyTax
BenefitPartAandPartB)andChildcareBenefitandChildcareRebate.RentAssistanceisexcludedexceptwhereotherwisestated.Children<6areinlongdaycare(at$8.55perhour)andchildren6-13areinoutsideschoolhourscare(at$7.65perhour)asrelevant.
(c)TaxpaidisequaltoincometaxincludingtheMedicareLevyandtheTemporaryBudgetRepairLevy.(d)Disposableincomeisthesumofprivateincomeandgovernmentpaymentslesstaxpaid.(e)Nettaxliabilityisequaltotaxpaidlessgovernmentpayments.(f)‘Full-timetaxpayercontribution’referstothenumberofsingletaxpayerswithnodependentsonaveragefulltimeweeklyordinarytimeearningsrequiredtofundnegative
nettaxliabilities.In2015-16,thispersonearns$79,454andpaystaxof$18,959.(g)Incomeisassumedtobefrominvestmentswhichearnarateofreturnequaltocurrentdeemingrates.(h)TheindividualisassumedtobeentitledtothemaximumRentAssistance.*FamiliesholdPrivateHealthInsurancecover.
Family type Private income(a)
Government assistance(b)
Income tax paid(c)
Disposable income(d)
Net income tax liability(e)
Full time taxpayer contribution(f)
Individuals
Singlepersonworking5daysaweek $40,000 - $4,947 $35,053 $4,947 -
Singlepersonworking5daysaweek $80,000 - $19,147 $60,853 $19,147 -
Singlepersonworking5daysaweek $100,000 - $26,947 $73,053 $26,947 -
Pensioners
Singlehomeownerwith$50,000inassets(g) $896 $22,617 $0 $23,513 -$22,617 1.2
Singlenon-homeownerwith$100,000inassets(g)(h) $2,521 $25,995 $0 $28,516 -$25,995 1.4
Couplehomeownerwith$200,000incombinedassets(g) $5,291 $34,095 $0 $39,386 -$34,095 1.8
Couplehomeownerwith$400,000incombinedassets(g) $11,791 $29,864 $0 $41,655 -$29,864 1.6
33 Overview
Major initiatives
This table summarises the major initiatives in the 2015 Budget and their impact on the fiscal balance. More comprehensive information is provided in Budget Paper No. 2, Budget Measures 2015-16.
Appendix D
Key Measures 2014-15 2015-16 2016-17 2017-18 2018-19 Total
$m $m $m $m $m $m
FamiliesPackage–childcare–WorkforceParticipationStream -1 -141 -277 -1,309 -1,472 -3,199
MedicareBenefitsSchedule–changestoGPrebates–reversal -181 -646 -692 -718 -754 -2,991
GrowingJobsandSmallBusiness–YouthEmploymentStrategy–revisedwaitingperiodforyouthincomesupport
4 -462 -438 -447 -501 -1,845
PharmaceuticalBenefitsScheme–newandamendedlistings -7 -388 -391 -401 -387 -1,575
FamiliesPackage–NationalPartnershipAgreementonUniversalAccesstoEarlyChildhoodEducation–extension
0 -125 -420 -299 0 -843
DevelopingNorthernAustralia–NorthernAustraliaInfrastructureFacility 0 -1 -327 -266 -206 -800
AutomotiveTransformationScheme–revisedimplementation -100 -175 -150 -183 -175 -783
WesternAustraliaInfrastructureProjects -499 0 0 0 0 -499
OperationOkra–continuedsupport -3 -383 -22 -10 0 -418
RefugeeresettlementarrangementsforIllegalMaritimeArrivalsinoffshoreprocessingcentres -138 -252 0 0 0 -390
FamiliesPackage–ChildCareSafetyNet 0 -8 -79 -135 -105 -328
FamiliesPackage–moregenerousmeanstestingarrangementsforyouthpayments 0 -21 -75 -81 -85 -263
DigitalTransformationAgenda–StageOneandestablishmentoftheDigitalTransformationOffice
0 -118 -71 -41 -25 -255
NationalPartnershipAgreementonHomelessness–extension 0 -115 -115 0 0 -230
GrowingJobsandSmallBusiness–YouthEmploymentStrategy–IntensiveSupport–transitiontowork
0 -25 -61 -64 -62 -212
Total -924 -2,859 -3,118 -3,956 -3,773 -14,630
Revenue items 2014-15 2015-16 2016-17 2017-18 2018-19 Total
$m $m $m $m $m $m
GrowingJobsandSmallBusiness–taxcutsforsmallbusiness 0 -250 -950 -1,000 -1,050 -3,250
GrowingJobsandSmallBusiness–expandingaccelerateddepreciationforsmallbusinesses 0 -250 -800 -850 150 -1,750
Personalincometax–modernisingthemethodsusedforcalculatingwork-relatedcarexpensedeductions
0 0 270 280 295 845
StrengtheningAustralia’sforeigninvestmentframework 0 81 166 199 205 651
Personalincometax–changestotaxresidencyrulesfortemporaryworkingholidaymakers 0 -1 98 218 220 535
GST–complianceprogramme–threeyearextension 0 0 132 160 153 445
CostRecoveryofCitizenshipandadjustmentofVisaApplicationCharges 0 103 109 111 113 437
Personalincometax–bettertargetingtheZoneTaxOffsettoexclude‘fly-infly-out’and‘drive-indrive-out’workers
0 0 105 110 110 325
Introducingacapforsalarysacrificedmealentertainmentandentertainmentfacilityleasingexpenses
0 20 85 90 100 295
Total 0 -297 -785 -681 296 -1,467
34Overview
Appendix D
Major savings
This table summarises the major savings in the 2015 Budget and their impact on the fiscal balance. More comprehensive information is provided in Budget Paper No. 2, Budget Measures 2015-16.
Appendix E
2014-15 2015-16 2016-17 2017-18 2018-19 Total
$m $m $m $m $m $m
SocialSecurityAssetsTest–rebalanceassettestthresholdsandtaperrate 0 0 445 975 1,024 2,443
StrengtheningtheIntegrityofWelfarePayments -1 253 559 623 254 1,688
CommonwealthcontributiontotheEastWestLinkproject* 100 300 600 0 500 1,500
RemovingDouble-DippingfromParentalLeavePay 0 -10 268 343 367 968
RationalisingandstreamliningHealthprogrammes 12 121 216 276 337 963
ManagementoftheImmigrationDetentionNetwork 30 111 142 137 136 554
NoJabNoPay 0 72 148 147 141 508
SocialSecurityIncomeTest–improveintegrityofsocialsecurityincometestarrangements 0 57 129 136 143 465
SustainableResearchExcellence–adjustment 0 0 150 38 75 263
PharmaceuticalBenefitsScheme–pricechanges 14 55 56 61 67 252
MyHealthRecord–anewdirectionforelectronichealthrecordsinAustralia 0 62 107 50 -5 214
CessationoftheLargeFamilySupplementofFamilyTaxBenefitPartA 0 -2 59 60 60 177
SmallerGovernment–ImmigrationandBorderProtectionefficiencies 0 8 51 55 55 168
MedicareBenefitsSchedule–healthassessmentitems–modification 0 20 36 41 47 145
SmallerGovernment–EducationandTrainingPortfolio 1 32 24 30 44 131
ChildDentalBenefitsSchedule–consistentindexation 0 15 25 38 48 126
DigitalTransformationAgenda–PortfolioContributions 12 45 23 22 18 120
SmallerGovernment–HealthPortfolio 3 15 29 33 33 113
InfrastructureInvestmentProgramme–savings 62 28 5 5 5 105
EmploymentServices–ChangestoServiceFeesandCessationofPersonalContactInterviews 44 9 11 11 11 86
Total 276 1,191 3,082 3,080 3,360 10,989
*TheGovernmentremainscommittedtoproviding$3billiontowardstheEastWestLink.ThiscommitmentisreflectedasacontingentliabilityinStatement 8: Statement of Risks,inBudgetPaperNo.12015-16.
Revenue items 2014-15 2015-16 2016-17 2017-18 2018-19 Total
$m $m $m $m $m $m
GrowingJobsandSmallBusiness–taxcutsforsmallbusiness 0 -250 -950 -1,000 -1,050 -3,250
GrowingJobsandSmallBusiness–expandingaccelerateddepreciationforsmallbusinesses 0 -250 -800 -850 150 -1,750
Personalincometax–modernisingthemethodsusedforcalculatingwork-relatedcarexpensedeductions
0 0 270 280 295 845
StrengtheningAustralia’sforeigninvestmentframework 0 81 166 199 205 651
Personalincometax–changestotaxresidencyrulesfortemporaryworkingholidaymakers 0 -1 98 218 220 535
GST–complianceprogramme–threeyearextension 0 0 132 160 153 445
CostRecoveryofCitizenshipandadjustmentofVisaApplicationCharges 0 103 109 111 113 437
Personalincometax–bettertargetingtheZoneTaxOffsettoexclude‘fly-infly-out’and‘drive-indrive-out’workers
0 0 105 110 110 325
Introducingacapforsalarysacrificedmealentertainmentandentertainmentfacilityleasingexpenses
0 20 85 90 100 295
Total 0 -297 -785 -681 296 -1,467
35 Overview
Child care fee assistance
The table below shows Government fee assistance available to families using long day care in 2017-18 on a per child, per year basis.
Appendix F
Hours of care per week
Family Adjusted Taxable Income 10 20 30 40 50
$60,000orless $4,332 $8,663 $12,995 $17,326 $21,658
$70,000 $4,259 $8,517 $12,776 $17,035 $21,294
$80,000 $4,089 $8,178 $12,267 $16,355 $20,444
$90,000 $3,919 $7,838 $11,757 $15,676 $19,595
$100,000 $3,749 $7,498 $11,247 $14,997 $18,746
$110,000 $3,579 $7,159 $10,738 $14,317 $17,896
$120,000 $3,409 $6,819 $10,228 $13,638 $17,047
$130,000 $3,240 $6,479 $9,719 $12,958 $16,198
$140,000 $3,070 $6,139 $9,209 $12,279 $15,348
$150,000 $2,900 $5,800 $8,699 $11,599 $14,499
$160,000 $2,730 $5,460 $8,190 $10,920 $13,650
$170,000 $2,560 $5,120 $7,680 $10,240 $12,800
$180,000 $2,548 $5,096 $7,644 $10,192 $12,740
$190,000 $2,548 $5,096 $7,644 $10,000 $10,000
$200,000ormore $2,548 $5,096 $7,644 $10,000 $10,000
Notes-Lowerthresholdof$65,710at85percent-Upperthresholdof$170,710at50percent-Annualfeecapof$10,000appliestofamilyincomesgreaterof$185,710ormore-Feecapof$11.55applieswhichwillaffectsubsidiesreceivedabovethisamount-Assumesfeeof$9.80perhourin2017-18-Assumes52weeksperyear
36Overview
Appendix F
Detailed economic forecasts(a)
The table below shows the Government’s macroeconomic forecasts. More comprehensive information is provided in Budget Paper No. 1, Statement 2.
Appendix G
Outcomes(b) Forecasts
2013-14 2014-15 2015-16 2016-17
Realgrossdomesticproduct 2.5 21/2 23/4 31/4
Householdconsumption 2.2 23/4 3 31/4
Dwellinginvestment 5.1 61/2 61/2 41/2
Totalbusinessinvestment(c) -5.1 -51/2 -7 -31/2
Byindustry
Mininginvestment -7.0 -151/2 -251/2 -301/2
Non-mininginvestment -3.7 2 4 71/2
Privatefinaldemand(c) 0.9 11/4 11/4 21/4
Publicfinaldemand(c) 1.6 11/4 11/2 11/2
Changeininventories(d) -0.3 0 0 0
Grossnationalexpenditure 0.7 11/4 11/2 21/4
Exportsofgoodsandservices 5.8 61/2 5 61/2
Importsofgoodsandservices -1.9 -3 -11/2 21/2
Netexports(d) 1.6 2 11/4 1
Nominalgrossdomesticproduct 4.0 11/2 31/4 51/2
Pricesandwages
Consumerpriceindex(e) 3.0 13/4 21/2 21/2
Wagepriceindex(f) 2.5 21/2 21/2 23/4
GDPdeflator 1.5 -1 1/2 21/4
Labourmarket
Participationrate(percent)(g) 64.6 643/4 643/4 643/4
Employment(f) 0.7 11/2 11/2 2
Unemploymentrate(percent)(g) 5.9 61/4 61/2 61/4
Balanceofpayments
Termsoftrade(h) -3.7 -121/4 -81/2 3/4
Currentaccountbalance(percentofGDP) -3.1 -3 -31/2 -23/4
(a)Percentagechangeonprecedingyearunlessotherwiseindicated. (b)Calculatedusingoriginaldataunlessotherwiseindicated. (c)Excludingsecond-handassetsalesfromthepublicsectortotheprivatesector. (d)PercentagepointcontributiontogrowthinGDP. (e)Through-the-yeargrowthratetotheJunequarter. (f)Seasonallyadjusted,through-the-yeargrowthratetotheJunequarter. (g)SeasonallyadjustedratefortheJunequarter. (h)Theforecastsareunderpinnedbyspotpricesof$48($US/t,FOB)forironore;$90($US/t,FOB)formetallurgicalcoaland$60($US/t,FOB)forthermalcoal.
Note:Theforecastsforthedomesticeconomyarebasedonseveraltechnicalassumptions.Theexchangerateisassumedtoremainarounditsrecentaveragelevel—atrade-weightedindexofaround64anda$USexchangerateofaround77UScents.Interestratesareassumedtomovebroadlyinlinewithmarketexpectations.Worldoilprices(MalaysianTapis)areassumedtoremainaroundUS$64perbarrel.
37 Overview
Historical budget and net financial worth dataThis table provides historical data and forward estimates for Australian Government General Government Sector cash receipts, cash payments, the underlying cash balance and net financial worth. More comprehensive information is provided in Budget Paper No. 1, Budget Strategy and Outlook Statement 10.
Appendix H
Receipts(a) Payments(b)Underlying
cash balance(c) Net financial worth(d)
$mPer cent of GDP $m
Per cent of GDP $m
Per cent of GDP $m
Per cent of GDP
1984-85 58,817 25.0 64,853 27.6 -6,037 -2.6 na na
1985-86 66,206 25.4 71,328 27.4 -5,122 -2.0 na na
1986-87 74,724 26.1 77,158 27.0 -2,434 -0.9 na na
1987-88 83,491 25.8 82,039 25.3 1,452 0.4 na na
1988-89 90,748 24.7 85,326 23.2 5,421 1.5 na na
1989-90 98,625 24.4 92,684 22.9 5,942 1.5 na na
1990-91 100,227 24.2 100,665 24.3 -438 -0.1 na na
1991-92 95,840 22.7 108,472 25.6 -12,631 -3.0 na na
1992-93 97,633 22.0 115,751 26.1 -18,118 -4.1 na na
1993-94 103,824 22.2 122,009 26.1 -18,185 -3.9 na na
1994-95 113,458 22.9 127,619 25.7 -14,160 -2.9 na na
1995-96 124,429 23.5 135,538 25.6 -11,109 -2.1 na na
1996-97 133,592 24.0 139,689 25.1 -6,099 -1.1 na na
1997-98 140,736 23.9 140,587 23.9 149 0.0 na na
1998-99 152,063 24.5 148,175 23.9 3,889 0.6 na na
1999-00 166,199 25.2 153,192 23.2 13,007 2.0 -67,036 -10.1
2000-01 182,996 25.9 177,123 25.1 5,872 0.8 -71,876 -10.2
2001-02 187,588 24.9 188,655 25.0 -1,067 -0.1 -78,032 -10.4
2002-03 204,613 25.5 197,243 24.6 7,370 0.9 -82,931 -10.4
2003-04 217,775 25.3 209,785 24.3 7,990 0.9 -72,389 -8.4
2004-05 235,984 25.6 222,407 24.1 13,577 1.5 -58,882 -6.4
2005-06 255,943 25.6 240,136 24.1 15,757 1.6 -59,763 -6.0
2006-07 272,637 25.1 253,321 23.3 17,190 1.6 -35,696 -3.3
2007-08 294,917 25.0 271,843 23.1 19,754 1.7 -14,690 -1.2
2008-09 292,600 23.3 316,046 25.1 -27,013 -2.1 -71,490 -5.7
2009-10 284,662 22.0 336,900 26.0 -54,494 -4.2 -144,485 -11.2
2010-11 302,024 21.5 346,102 24.6 -47,463 -3.4 -198,787 -14.1
2011-12 329,874 22.2 371,032 24.9 -43,360 -2.9 -355,834 -23.9
2012-13 351,052 23.1 367,204 24.1 -18,834 -1.2 -312,724 -20.6
2013-14 360,322 22.8 406,430 25.7 -48,456 -3.1 -370,331 -23.4
2014-15(e) 377,309 23.5 415,000 25.9 -41,121 -2.6 -350,096 -21.8
2015-16(e) 397,980 24.0 429,836 25.9 -35,115 -2.1 -383,538 -23.2
2016-17(e) 422,461 24.2 444,923 25.5 -25,836 -1.5 -405,998 -23.3
2017-18(p) 453,595 24.7 464,292 25.3 -14,396 -0.8 -415,241 -22.6
2018-19(p) 488,233 25.2 491,101 25.3 -6,905 -0.4 -417,754 -21.6
(a)Receiptsareequaltocashreceiptsfromoperatingactivitiesandsalesofnon-financialassets.(b)Paymentsareequaltocashpaymentsforoperatingactivities,purchasesofnon-financialassetsandnetacquisitionofassetsunderfinanceleases.(c)Underlyingcashbalanceisequaltoreceiptslesspayments,lessnetFutureFundearnings.Forthepurposesofconsistentcomparisonwithyearsprior(d)Netfinancialworthisequaltofinancialassetslesstotalliabilities.(e)Estimates.(p)Projections.Note:Fullhistoricalseriesgoingbackto1970-71areavailableinBudgetPaperNo.1,BudgetStrategyandOutlook,Statement10.