2012 Australian federal budget

April 2024 October 2017 Australian federal budget 2012–13 Australia Australian federal budget, 2011–12 2011–12 Australian federal budget, 2013–14 2013–14 Coat of Arms of Australia.svg 250px Parliament of Australia 8 May 2012 43rd Australian Labor Party Wayne Swan $376.1 billion $376.3 billion $1.5 billion (Forecast) http://www.budget.gov.au/2012-13/ 2012–13 Commonwealth Budget ‡Numbers in italics are projections. The 2012 Australian federal budget for the Australian financial year ended 30 June 2013 was presented on 8 May 2012 by the Treasurer of Australia, Wayne Swan, the fifth federal budget presented by Swan, and the second budget of the Gillard government. The budget was described as a "battlers" budget with benefits geared towards families and low income earners. It forecast a surplus of $1.5 billion in the financial year ended 30 June 2013. The Gillard government emphasised the importance of returning the budget to a surplus so that the Reserve Bank of Australia may be in a better position to cut interest rates and thereby generate positive consumer sentiment. Swan was at pains to emphasise that the Bank would set rates independently. Swan had also stated it important for the confidence of sovereign debt investors after the 2008 financial crisis.https://www.bloomberg.com/news/articles/2012-04-29/swan-plans-savings-with-australia-tax-a150-billion-short Swan Plans Savings With Australia Tax A$150 Billion Short David Fickling 29 April 2012 Bloomberg News Bloomberg L.P. subscription https://archive.today/20130118140944/http://www.businessweek.com/news/2012-04-29/swan-plans-savings-with-australia-tax-a-150-billion-short 18 January 2013 live The budget set up funding for a new National Disability Insurance Scheme (NDIS). Measures to improve public dental health care, one of the conditions of support made by the Australian Greens with the Gillard government were addressed with more than $500 million worth of funding. Carbon pricing and the Minerals Resource Rent Tax were both introduced in July 2012. Forecasts Surplus The budget was expected to produce a surplus.http://news.smh.com.au/breaking-news-national/labor-values-centre-of-budget-bradbury-20120501-1xw6b.html Labor values centre of budget: Bradbury 1 May 2012 1 May 2012 The Sydney Morning Herald The return to surplus has been criticised as a political imperative rather than an economic necessity. The Institute of Chartered Accountants believes that targeted public expenditure was still needed to sustain the Australian economy.http://news.smh.com.au/breaking-news-national/support-economy-not-surplus-accountants-20120501-1xwar.html Support economy, not surplus: accountants 1 May 2012 1 May 2012 The Sydney Morning Herald Former Governor of the Reserve Bank of Australia, Bernie Fraser has dismissed the notion that delivering a surplus is critical, describing it as "a dud policy".http://www.abc.net.au/news/2012-04-30/fraser-disillusioned-with-australian-politics/3980874 Fraser takes aim at both sides of politics Stephen Long 1 May 2012 1 May 2012 ABC News The surplus follows a projected $44 billion deficit for the 2011/12 financial year, up from the previous estimate of $36 billion. By abolishing the Education Tax Refund and bringing forward payments to families into the 2011/12 fiscal year, the Government was able to forecast its surplus for 2012/13.http://news.smh.com.au/breaking-news-national/gillard-defends-budget-surplus-plan-20120419-1x82t.html Gillard defends budget surplus plan Paul Osborne 1 May 2012 18 April 2012 The Sydney Morning Herald The 2011/12 expanded deficit moves the Government's net debt position to 9.6% of GDP.Budget Paper No. 1: Budget Strategy and Outlook 2012‑13 Page 1-14 Despite the spike in debt, the budget has not affected the nation's Triple A international credit rating. Shortfall In October 2012, Wayne Swan announced a budget update which revealed revenue downgrades worth $21 billion from projected tax revenue and $4 billion from the current financial year. Lower commodity prices and falling tax receipts reduced the current forecast surplus to $1.1 billion.http://www.abc.net.au/news/2012-10-22/swan-wields-axe-to-protect-shrinking-surplus/4326498 Swan wields axe to protect shrinking surplus Cullen 24 November 2012 22 October 2012 ABC News Spot prices for iron ore, thermal coal and coking coal decreased by 15 to 35% since the budget was released in May.http://www.brisbanetimes.com.au/opinion/political-news/budget-shock-21b-shortfall-20121019-27wqj.html Budget shock: $21b shortfall Peter Martin 24 November 2012 20 October 2012 Brisbane Time The update also showed the cost of processing asylum seekers has increased by $1.1 billion. New spending cuts and extra charges worth $16 billion were announced. Visa application fees will increase, the baby bonus payment will decrease for second and subsequent children and the Medicare teen dental program was cancelled. Starting in 2014 companies with an annual turnover greater than $1 billion will have to pay tax in monthly instalments instead of quarterly.http://www.abc.net.au/news/2012-10-22/tax-shakeup-puts-business-offside/4327340 Swan's tax shakeup puts business offside Cullen 24 November 2012 23 October 2012 ABC News Revenue mix Before the budget was released Swan had warned that the government revenues would see a downgrade by $5 billion in both the 2012–13 and 2013–14 financial years.https://www.theaustralian.com.au/nation/independents-budget-hard-line/news-story/b3ffb754d7de45fbf27f5abd55f10c87 Independents' budget hard line Lauren Wilson 30 April 2012 30 April 2012 subscription The Australian Taxation $2 billion worth of lost tax revenue was due to a decline in company tax collections.http://www.smh.com.au/opinion/political-news/swan-needs-to-save-10b-to-get-budget-in-surplus-20120429-1xt2a.html Swan needs to save $10b to get budget in surplus Peter Martin & Amy Corderoy 30 April 2012 30 April 2012 The Sydney Morning Herald $1 billion has been lost to weak collections from superannuation funds and a further $750 million of revenue was lost due to lower than expected collections of customs and excise duties.http://www.smh.com.au/opinion/political-news/swan-still-fishing-around-to-find-another-10bn-20120429-1xt3u.html Swan still fishing around to find another $10bn Peter Martin & Amy Corderoy 30 April 2012 30 April 2012 The Sydney Morning Herald High income earners on $300,000 or more are to have their superannuation contributions taxed at 30% instead of 15%. The Minerals Resource Rent Tax, a 30% tax on coal and iron ore companies worth more than $75 million, is being introduced. It is expected to generate $11 billion over three years, which will be used to support superannuation boosts, infrastructure costs and offset business tax cuts.http://www.brisbanetimes.com.au/business/federal-budget/budget-measures-already-announced-20120507-1y7vi.html Budget measures already announced Jessica Wright 7 May 2012 7 May 2012 Brisbane Times Small business tax was expected to be reduced by 1% from 1 July. However this measure was abandoned.http://www.brisbanetimes.com.au/business/federal-budget/budget-gifts-mining-boom-to-families-20120508-1yb0v.html Budget gifts mining boom to families Jessica Wright 8 May 2012 8 May 2012 Brisbane Times The budget will introduce a small business "loss carryback" option as recommended by the Henry Tax Review.http://www.brisbanetimes.com.au/business/federal-budget/federal-budget--what-we-know-so-far-20120507-1y8m0.html Federal budget – what we know so far Madeleine Heffernan 7 May 2012 7 May 2012 Brisbane Times This will allow businesses to claim losses of up to $1 million against tax they have paid previously and will cost $700 million across three years. The inbound duty-free allowance for cigarettes and tobacco was reduced from 250 to 50 cigarettes, bringing savings of $600 million. Expenditure mix General government The cost for managing asylum seeker boat arrivals has increased to $1.003 billion from an earlier estimate of $739 million.http://www.skynews.com.au/national/article.aspx?id=748247&vId= Fresh blowout in asylum seeker costs 9 May 2012 8 May 2012 Sky News Australia Australian News Channel The number of asylum seekers entering Australia by boat is currently at its highest level ever. Funding for the Australian Bureau of Statistics is being reduced by $255 million and the CSIRO is set to lose $25 million. Smaller cuts are also planned for the Australian National Library, National Film and Sound Archive and the National Museum of Australia. Social security and welfare The budget allocated $131.6 billion to social security and welfare spending.http://www.news.com.au/money/federal-budget/welfare-budget-costing-5000-a-head/story-fn84fgcm-1226351467594 https://web.archive.org/web/20120509151554/http://www.news.com.au/money/federal-budget/welfare-budget-costing-5000-a-head/story-fn84fgcm-1226351467594 dead 9 May 2012 Government's welfare budget costs $5000 a head Phillip Hudson 20 August 2012 10 May 2012 The Daily Telegraph On 30 April 2012, Julia Gillard announced the budget will fund the National Disability Insurance Scheme starting from July 2013.http://www.abc.net.au/news/2012-04-30/gillard-announces-disability-insurance-scheme/3980662?section=nsw Government to fund disability insurance scheme 30 April 2012 30 April 2012 ABC News The scheme is planned to assist 10,000 people with significant and permanent disabilities. From July 2013, single, unemployed parents who claimed the parenting payment before 2007 will lose their parenting support payments when their youngest child turns eight, instead of the previous threshold of age sixteen.http://www.adelaidenow.com.au/money/tough-love-budget-targets-single-parents-to-save-700m/story-fn84geaj-1226346302653 Tough Love: Budget targets single parents to save $700m Benson 4 May 2012 3 May 2012 The Daily Telegraph Welfare recipients who travel overseas for more than six weeks will have their payments reduced. 1.5 million families will see an increase family tax benefits starting from 1 July. Other families will lose Family Tax Benefit A because the eligibility age for children in this category is being reduced from 21 to under 18. Infrastructure, transport and energy $3.56 billion is being spent on the complete duplication of the Pacific Highway. The funding is being provided on the condition that a similar figure is spent on the highway by the New South Wales government.http://www.smh.com.au/business/federal-budget/funding-clash-looms-over-pacific-highway-20120509-1yd5a.html Funding clash looms over Pacific Highway Sean Nicholls 10 July 2012 10 May 2012 The Sydney Morning Herald Minister for Roads and Ports, Duncan Gay has claimed there was an existing agreement based on an 80–20 funding split. The New South Wales state budget, which was handed down in June 2012, only allocated 20% of the cost for an upgrade.http://www.abc.net.au/local/stories/2012/06/12/3523501.htm State funds 20 per cent of Pacific Highway upgrade Bruce MacKenzie & Samantha Turnbull 10 July 2012 12 June 2012 ABC North Coast NSW Australian Broadcasting Corporation Education The budget is introducing the Schoolkids Bonus, a replacement for the under-used Education Tax Refund. Under the scheme, eligible families are able to claim $820 for each high school student and $410 for each primary school student.http://www.abc.net.au/news/2012-05-06/families-of-school-kids-in-line-for-budget-boost/3993816 Families of school kids in line for budget boost 6 May 2012 6 May 2012 ABC News The bonus is expected to assist 2.2 million families.http://www.brisbanetimes.com.au/business/federal-budget/benefits-boost-for-15-million-middle-income-families-20120508-1yb8v.html Benefits boost for 1.5 million middle- income families 9 May 2012 8 May 2012 Brisbane Times $11.7 million worth of funding has been allocated for a one-off boost to the One Laptop Per Child in Australia, which will provide laptops for 50,000 students.http://www.computerworld.com.au/article/424025/one_laptop_per_child_australia_scores_11_7m_federal_budget/?fp=4&fpid=1968336438 One Laptop per Child Australia scores $11.7m in federal budget Rohan Pearce 9 May 2012 9 May 2012 Computerworld IDG Communications Defence More than $4 billion of spending on defence projects is being reduced or deferred.http://www.theaustralian.com.au/national-affairs/treasury/bn-stripped-from-defence/story-fndbwnla-1226346325432 https://web.archive.org/web/20120503234351/http://www.theaustralian.com.au/national-affairs/treasury/bn-stripped-from-defence/story-fndbwnla-1226346325432 dead 3 May 2012 $4bn stripped from Defence Brendan Nicholson 4 May 2012 4 May 2012 The Australian The purchase of 12 Joint Strike Fighters will be delayed by two years and plans to equip the army with self-propelled artillery have been cancelled.http://www.abc.net.au/news/2012-05-03/defence-white-paper-now-due-in-2013/3987042 Rethink of Defence projects to save billions Sabra Lane 3 May 2012 3 May 2012 ABC News There is $214 million worth of funding for a number of international studies to select a new submarine to replace the Collins class submarines. 1,000 civilian positions at the Department of Defence are to be trimmed over the next four years.http://www.abc.net.au/news/2012-05-08/swan-hands-down-2012-budget/3998806 Back to black as Swan budgets for the boom Cullen 8 May 2012 8 May 2012 ABC News Health The public dental waiting list is being targeted with an injection of $345 million to reduce the backlog.http://www.theage.com.au/business/federal-budget/stringent-budget-will-show-some-teeth-20120505-1y5zv.html Stringent budget will show some teeth 6 May 2012 6 May 2012 The Age Also being introduced in the budget are measures to reduce the lack of dental healthcare professionals in rural and remote areas and the co-ordination of dental work for disadvantaged people.http://www.canberratimes.com.au/national/health/budget-drills-deep-to-shorten-dental-queues-20120505-1y5nx.html Budget drills deep to shorten dental queues Stephanie Peatling 6 May 2012 6 May 2012 The Canberra Times A 2011 report from the Productivity Commission suggested the aged care sector needed drastic reform and an investment plan to deal with a rapidly ageing population.https://www.theaustralian.com.au/national-affairs/capital-circle/agedcare-overhaul-protects-family-home/news-story/43c033d135b38a128b2e08a7f26a5211 Aged-care overhaul protects family home James Massola 10 July 2012 20 April 2012 subscription The Australian The budget included $3.7 billion to reform the aged care system.http://www.budget.gov.au/2012-13/content/at_a_glance/html/at_a_glance.htm 2012–13 Commonwealth Budget – Budget at a Glance Australian Government 10 July 2012 Only $577 million of this is new funding spread across five years.http://www.canberratimes.com.au/breaking-news-national/dental-aged-care-focus-of-health-budget-20120508-1yb2p.html Dental, aged care focus of health budget Julian Drape 10 July 2012 8 May 2012 The Canberra Times $49.7 million has been allocated to support the national bowel cancer screening program. Community services and culture $63 million is being provided to SBS for the production of a new free-to-air national Indigenous television channel.http://www.abc.net.au/rural/news/content/201205/s3498395.htm SBS gets funds for Indigenous TV channel Tony Allan 9 May 2012 8 May 2012 ABC Rural Australian Broadcasting Corporation Opposition and crossbench response Shadow treasurer Joe Hockey has said the surplus was created by "cooking the books" and that it was confused. Tony Abbott was troubled by the debt ceiling being raised to $300 billion and said that a surplus was only the result of forward spending.http://www.heraldsun.com.au/money/federal-budget-surplus-a-charade-says-tony-abbott/story-fn84gmep-1226350697646 Federal Budget surplus a charade, says Tony Abbott 9 May 2012 9 May 2012 Herald Sun Reception Innes Willox from the Australian Industry Group claimed the budget undermined businesses ability to make long-term investments. Jennifer Westacott at the Business Council of Australia appreciated a return to surplus but also wanted a comprehensive audit of government spending. Brendan Lyon from Infrastructure Partnerships Australia described the budget as a "lost opportunity" and lamented that instead of directing funding to infrastructure projects, the budget directed funding to families.http://www.brisbanetimes.com.au/queensland/budget-a-lost-opportunity-for-infrastructure-20120508-1yb6x.html Budget a 'lost opportunity' for infrastructure Tony Moore 9 May 2012 9 May 2012 Brisbane Times See also Australia Australian national debt Economy of Australia References 2 Federal budget Category:Australian budgets Australian federal budget Category:Gillard government Category:May 2012 in Australia