2013 Australian federal budget

none April 2024 October 2017 Australian federal budget 2013–14 Australia Australian federal budget, 2012 2012 Australian federal budget, 2014 2014 Coat of Arms of Australia.svg 250px Gillard government Parliament of Australia 14 May 2013 43rd Australian Labor Party Wayne Swan $373.9 billionhttps://archive.budget.gov.au/2013-14/fbo/FBO_Consolidated.pdf Final Budget Outcome 2013–14 September 2014 Joe Hockey Mathias Cormann Mathias Cormann Joe Hockey The Commonwealth of Australia 1 October 2024 1 October 2024 https://web.archive.org/web/20241001065741/https://archive.budget.gov.au/2013-14/fbo/FBO_Consolidated.pdf live 978-1-925220-11-7 $398.3 billion $413.8 billion (26.1% of GDP) $48.5 billion (3.1% of GDP) $202.5 billion (12.8% of GDP) 2013–14 Commonwealth Budget The 2013 Australian federal budget for the Australian financial year ended 30 June 2014 was presented on 14 May 2013 by the Treasurer of Australia, Wayne Swan, the sixth federal budget presented by Swan. The 2013 budget estimated total revenue of A$387.7 billion and spending of A$398.3 billion, a deficit of A$18 billion, with a return to surplus expected in the 2015 Australian federal budget (FY 2015–16). Some of the measures in the budget had been announced by various Ministers before the budget. According to Swan the budget was being impacted by both global economic uncertainty and the high Australian dollar.http://news.ninemsn.com.au/national/2013/04/14/15/02/swan-heads-to-us-with-budget-in-mind https://archive.today/20130615202734/http://news.ninemsn.com.au/national/2013/04/14/15/02/swan-heads-to-us-with-budget-in-mind dead 15 June 2013 Swan heads to US with budget in mind 19 April 2013 14 April 2013 ninemsn It features significant spending on disability services and a school improvement program based on the Gonski Report.https://www.bloomberg.com/news/2013-05-12/australian-treasurer-says-strong-dollar-delays-return-to-surplus.html Australian Treasurer Says Strong Dollar Delays Return to Surplus James Paton 12 May 2013 12 May 2013 Bloomberg 14 May 2013 https://web.archive.org/web/20130514005346/http://www.bloomberg.com/news/2013-05-12/australian-treasurer-says-strong-dollar-delays-return-to-surplus.html live In an unusual step the election year budget contains 10-year forward estimates for the school and disability programs in an attempt to ensure funding is available.http://www.smh.com.au/business/federal-budget/100b-budget-trap-20130513-2jifo.html $100b budget trap Mark Kenny 14 May 2013 14 May 2013 The Sydney Morning Herald To pay for DisabilityCare Australia the Medicare levy was increased from 1.5 to 2% of taxable income from 1 July 2014. The budget was described as big spending but low taxing.http://www.abc.net.au/news/2013-05-14/labor-government-big-spending-but-low-taxing/4689370 Labor Government big spending but low taxing Stephen Long 15 May 2013 14 May 2013 ABC News It lacked any big surprises or so-called election sweeteners. Forecasts Deficit The budget was not expected to decrease government spending dramatically in an effort to quickly return to surplus. Swan has claimed that such a move would result in rising unemployment and slowing economic growth.https://www.theaustralian.com.au/nation/priority-is-jobs-over-surplus/news-story/d134b60698e5a33af23750f40e7e8d4f Priority 'is jobs over surplus' David Uren Stuart Rintoul 19 April 2013 19 April 2013 The Australian 18 April 2013 subscription https://web.archive.org/web/20130418185334/http://www.theaustralian.com.au/national-affairs/treasury/priority-is-jobs-over-surplus/story-fn59nsif-1226623895928 live A collapse in the price of carbon under the European Union Emission Trading Scheme means a return to surplus is unlikely in the following two federal budgets. The forecasted current account deficit is lower than the average for the past couple of decades allowing Standard and Poor's assessment of Australia's bond credit rating to remain at the AAA rating.http://news.smh.com.au/breaking-news-business/australia-keeps-aaa-rating-after-budget-20130514-2jkr5.html Australia keeps AAA rating after budget Kylie Williams 15 May 2013 14 May 2013 The Sydney Morning Herald Shortfall Tax revenue declines made it clear in late 2012 that the Gillard government's promised 2013 budget surplus would not eventuate. In the lead up to the budget announcement an estimate of a $17.5 billion decline in forecast revenue was calculated after Finance Minister Penny Wong released government figures. Most of this shortfall was attributed to company tax and the mining tax.http://www.smh.com.au/opinion/political-news/business-fears-poor-revenue-outlook-will-hit-tax-breaks-20130418-2i331.html Business fears poor revenue outlook will hit tax breaks Tim Colebatch 19 April 2013 19 April 2013 The Sydney Morning Herald 22 April 2013 https://web.archive.org/web/20130422113615/http://www.smh.com.au/opinion/political-news/business-fears-poor-revenue-outlook-will-hit-tax-breaks-20130418-2i331.html live A deficit of up to $10 billion in the 2013–14 financial was predicted by some economists.https://www.news.com.au/national/australian-governments-have-blown-mining-boom-cash-say-economists-/news-story/1aeb7d4a118260593506df0b43d82e8e Australian governments have blown mining boom cash, say economists Jessica Irvine 19 April 2013 14 April 2013 news.com.au 15 April 2013 https://web.archive.org/web/20130415233134/http://www.news.com.au/national-news/australian-governments-have-blown-mining-boom-cash-say-economists/story-fncynjr2-1226619834802 live In early May 2013, the Parliamentary Budget Office forecast that the Minerals Resource Rent Tax (MRRT) would only raise $800 million this year instead of $3 billion which was originally expected.http://www.abc.net.au/news/2013-05-06/greens-push-on-mining-tax/4671094 Greens renew push on mining tax after revenue downgraded Cullen 7 May 2013 6 May 2013 ABC News 7 May 2013 https://web.archive.org/web/20130507052048/http://www.abc.net.au/news/2013-05-06/greens-push-on-mining-tax/4671094 live Revenues Taxation In March 2013, Prime Minister Julia Gillard indicated an increase on the tax on superannuation contributions was likely.http://www.abc.net.au/news/2013-03-27/gillard-signals-sustainable-budget-super-changes/4597050 Gillard signals 'sustainable' budget super changes Emma Griffiths 22 April 2013 27 March 2013 ABC News 27 April 2013 https://web.archive.org/web/20130427040903/http://www.abc.net.au/news/2013-03-27/gillard-signals-sustainable-budget-super-changes/4597050 live On 1 May 2013, Gillard announced a 0.5% increase of the Medicare levy to fund DisabilityCare Australia which will take effect on 1 July 2014,http://www.abc.net.au/news/2013-05-01/medicare-levy-increased-to-fund-ndis/4661660 Gillard proposes Medicare levy hike to fund NDIS Emma Griffiths 2 May 2013 2 May 2013 ABC News 2 May 2013 https://web.archive.org/web/20130502011243/http://www.abc.net.au/news/2013-05-01/medicare-levy-increased-to-fund-ndis/4661660 live and which is expected to raise $11 billion over four years.http://www.abc.net.au/news/2013-05-15/medicare-levy-increase-passes-lower-house/4692240 Medicare levy increase passes lower house 15 May 2013 15 May 2013 ABC News 22 May 2013 https://web.archive.org/web/20130522161639/http://www.abc.net.au/news/2013-05-15/medicare-levy-increase-passes-lower-house/4692240 live The budget included measures to counter tax avoidance by closing a loophole in which companies claim large tax deductions after increasing their Australian operations with debt.http://www.afr.com/p/national/budget_to_crack_down_on_multinationals_kStFYX78VYjUZBBiV2bAHL Budget to crack down on multinationals using tax loopholes 12 May 2013 11 May 2013 Australian Financial Review Fairfax Media Publications A$2,000 cap on tax deductions for work-related education expense was introduced in the budget. Expenditure General government A few days before the budget was delivered, Treasurer Swan announced the public service was to receive a $580 million reduction in funding over four years.http://www.abc.net.au/news/2013-05-12/swan-27misheard27-question-before-stating-2417b-budget-defic/4684404 Government to cut $580 million from public service 12 May 2013 12 May 2013 ABC News Expenditure on asylum seekers was forecast to be $2.9 billion, an increase of $930 million over previous year, as arrivals were expected to reach a record high.http://www.heraldsun.com.au/money/baby-bonus-abolished-in-federal-budget-2013/story-fn84gmep-1226642443779 Federal Budget 2013: Record number of asylum seekers to cost $2.9 billion Gemma Jones 14 May 2013 14 May 2013 Herald Sun Social security and welfare Included in the introduction of the Minerals Resource Rent Tax was an increase in the Family Tax Benefit Part A scheme. Finance Minister Penny Wong announced the cancellation of the increase prior to the release of the 2013 budget.http://www.abc.net.au/news/2013-05-07/proposed-family-benefits-increase-dumped/4673604 Government jettisons family benefit pledge Emma Griffiths 7 May 2013 6 May 2013 ABC News 7 May 2013 https://web.archive.org/web/20130507061452/http://www.abc.net.au/news/2013-05-07/proposed-family-benefits-increase-dumped/4673604 live It was intended to be a measure that would spread the wealth of the mining boom, however as revenue from that tax was significantly lower than expected, the payment had to be scrapped. The increase in the benefit was expected to go to around 1.5 million families. The baby bonus was abolished and replaced with a family tax benefit equivalent to less than half of the then-current payment.http://www.abc.net.au/news/2013-05-14/baby-bonus-to-be-abolished-in-swans-deficit-budget/4689144 Baby bonus to be abolished in Swan's deficit budget 14 May 2013 14 May 2013 ABC News 14 May 2013 https://web.archive.org/web/20130514083702/http://www.abc.net.au/news/2013-05-14/baby-bonus-to-be-abolished-in-swans-deficit-budget/4689144 live The payment was to cease on 1 March 2014, reducing expenditure by $1.1 billion over five years,http://www.abc.net.au/news/2013-05-14/government-scraps-baby-bonus-in-deficit-budget/4689348 Government scraps baby bonus in deficit budget Emma Griffiths 16 May 2013 14 May 2013 ABC News 14 May 2013 https://web.archive.org/web/20130514214426/http://www.abc.net.au/news/2013-05-14/government-scraps-baby-bonus-in-deficit-budget/4689348 live and being replaced with an increase in family tax benefits which will be means-tested and limited to $2,000 for the first born and $1,000 for subsequent children. The budget didn't contain a raise in the Newstart Allowance despite widespread calls for its increase. Instead the amount of money the unemployed may earn before it affects welfare payments was increased.http://www.brisbanetimes.com.au/business/federal-budget/budget-to-ease-strain-on-dole-and-sole-parent-wage-earners-20130512-2jg7i.html Budget to ease strain on dole and sole parent wage earners Tim Colebatch David Wroe Daniel Flitton 14 May 2013 13 May 2013 Brisbane Times 15 June 2013 https://web.archive.org/web/20130615102854/http://www.brisbanetimes.com.au/business/federal-budget/budget-to-ease-strain-on-dole-and-sole-parent-wage-earners-20130512-2jg7i.html live The change was estimated to cost $258 million over four years. $99.4 million was provided for a new Farm Household Allowance for eligible farmers facing hardship, replacing the previous Exceptional Circumstances Relief Payment and Transitional Farm Family Payment.http://www.theland.com.au/news/agriculture/agribusiness/general-news/budget-delivers-994m-for-farm-households/2657553.aspx Budget delivers $99.4m for farm households 19 May 2013 14 May 2013 The Land https://web.archive.org/web/20131203104116/http://www.theland.com.au/news/agriculture/agribusiness/general-news/budget-delivers-994m-for-farm-households/2657553.aspx 3 December 2013 dead dmy-all The payment will begin on 1 July 2014 and be equivalent to the Newstart Allowance. A farm finance scheme is to be introduced which will support farmers in debt.http://au.news.yahoo.com/thewest/a/-/breaking/17152940/agforce-questions-budgets-farm-efforts/ AgForce questions budget's farm efforts Emilie Gramenz Kate Stephens 19 May 2013 15 May 2013 The West Australian West Australian Newspapers 15 June 2013 https://archive.today/20130615202801/http://au.news.yahoo.com/thewest/a/-/breaking/17152940/agforce-questions-budgets-farm-efforts/ dead Infrastructure, transport and energy $400 million was provided for the construction of an eight km tunnel linking the Sydney–Newcastle Freeway and M2 Hills Motorway in Sydney.http://www.skynews.com.au/topstories/article.aspx?id=870665&vId=3954627 F3 link to M2 to be funded in Budget 12 May 2013 9 May 2013 Sky News $3 billion worth of funding out of a total cost of $8 billion for the Melbourne Metro Rail Project rapid transit rail project was allocated in the budget on the condition that Victoria fund an equal amount.http://www.smh.com.au/business/federal-budget/lies-damned-lies--and-budgets-20130514-2jknw.html Lies, damned lies ... and budgets Adele Ferguson Adele Ferguson 15 May 2013 15 May 2013 The Sydney Morning Herald 7 June 2013 https://web.archive.org/web/20130607202435/http://www.smh.com.au/business/federal-budget/lies-damned-lies--and-budgets-20130514-2jknw.html live $715 million was committed to the Cross River Rail project in Brisbane.https://www.news.com.au/national/federal-election/queensland-transport-minister-scott-emerson-says-cross-river-real-still-a-reality-despite-lower-funding-commitment/news-story/7211de39daf45bbea408fc3f98dd4c84 Queensland Transport Minister Scott Emerson says Cross River Real still a reality despite lower funding commitment 15 May 2013 15 May 2013 Courier-Mail Queensland's Transport Minister Scott Emerson was expecting twice as much for a 50–50 cost shared between federal and state governments. Education The Australian Indigenous Education Foundation was provided with an additional $22  million. Bonuses paid to those who pay their HECS debts up-front or voluntarily will cease, saving $237 million.http://news.smh.com.au/breaking-news-national/slow-start-for-schools-funding-boost-20130514-2jkk2.html Slow start for schools funding boost 14 May 2013 14 May 2013 The Sydney Morning Herald 3 December 2013 https://web.archive.org/web/20131203052007/http://news.smh.com.au/breaking-news-national/slow-start-for-schools-funding-boost-20130514-2jkk2.html live Defence The budget provided funding for new 12 radar-jamming Growler Super Hornet fighter aircraft.http://www.smh.com.au/business/federal-budget/reopening-old-wounds-comes-at-a-price-20130514-2jknh.html Reopening old wounds comes at a price David Wroe 15 May 2013 15 May 2013 The Sydney Morning Herald 8 June 2013 https://web.archive.org/web/20130608104712/http://www.smh.com.au/business/federal-budget/reopening-old-wounds-comes-at-a-price-20130514-2jknh.html live Overall spending on defence is up $10 billion compared to the previous year. Health "For the first time in Australian history, disability is at the centre of the federal budget, and for people with disability that's a key result," Disability Discrimination Commissioner Graham Innes 15em right The net medical expenses tax offset is to be phased out over two years.http://www.smh.com.au/business/federal-budget/medical-rebate-cut-while-smokes-will-go-up--faster-20130514-2jko6.html Medical rebate cut while smokes will go up faster Matt Wade 14 May 2013 14 May 2013 The Sydney Morning Herald A total of $14.3 billion worth of new funding was allocated to DisabilityCare Australia.http://www.abc.net.au/news/2013-05-15/welfare-groups-have-mixed-budget-reaction/4691620 Welfare groups have mixed budget reaction Sally Sara 16 May 2013 15 May 2013 ABC News 21 May 2013 https://web.archive.org/web/20130521091437/http://www.abc.net.au/news/2013-05-15/welfare-groups-have-mixed-budget-reaction/4691620 live Community services and culture The cost of 457 temporary skilled migrant visas was doubled to $900.http://www.sbs.com.au/news/article/1766612/Migrant-and-Indigenous-reaction-to-federal-budget Migrant and Indigenous reaction to federal budget Michael Kenny 16 May 2013 15 May 2013 SBS 16 May 2013 https://web.archive.org/web/20130516005613/http://www.sbs.com.au/news/article/1766612/Migrant-and-Indigenous-reaction-to-federal-budget dead Opposition and crossbench response Opposition treasury spokesman Joe Hockey described the budget as "fundamentally dishonest".http://www.abc.net.au/news/2013-05-15/government-defends-decision-to-axe-baby-bonus/4690666 Government defends decision to axe baby bonus Emma Griffiths 15 May 2013 15 May 2013 ABC News 22 May 2013 https://web.archive.org/web/20130522171920/http://www.abc.net.au/news/2013-05-15/government-defends-decision-to-axe-baby-bonus/4690666 live Tony Abbott claimed Julia Gillard was in denial over whether or not there was a spending problem.http://www.heraldsun.com.au/news/breaking-news/oppn-cant-put-timeframe-on-budget-suplus/story-e6frf7kf-1226642654936 Oppn can't put timeframe on budget surplus 15 May 2013 15 May 2013 Herald Sun Australian Greens leader Christine Milne said the budget lacked vision and was a disappointment to rural communities.http://www.stockjournal.com.au/news/agriculture/agribusiness/general-news/budget-fails-farmers-greens/2657952.aspx Budget fails farmers: Greens Colin Bettles 19 May 2013 19 May 2013 Stock Journal https://archive.today/20130615202655/http://www.stockjournal.com.au/news/agriculture/agribusiness/general-news/budget-fails-farmers-greens/2657952.aspx 15 June 2013 dead dmy-all Reception Even before the budget was released the business community, as represented by the Business Council of Australia, the Australian Industry Group, the Australian Chamber of Commerce and Industry and the Minerals Council of Australia, complained the budget would be lacking in both transparency and credibility and was achieved without genuine consultation.http://www.abc.net.au/am/content/2013/s3758464.htm Business lobbyists sink boot into unseen budget Peter Ryan 14 May 2013 14 May 2013 PM Australian Broadcasting Corporation 29 May 2016 https://web.archive.org/web/20160529133938/http://www.abc.net.au/am/content/2013/s3758464.htm live Australian Education Union President Angelo Gavrielatos praised the school reforms saying they would benefit children and the nation as a whole. The Federation of Ethnic Communities Councils of Australia supported the governments intention to maintain permanent migration and humanitarian intake levels as they were. Asylum seekers advocates questioned the expense of off-shore detention centres and processing. Indigenous organisations reacted with a mixed response. Some columnists questioned whether the forecast revenue would be as high as predicted especially considering the effect of a high Australian dollar. The assumption that Australia's gross domestic product will grow by 5% per year was also questioned. Representatives from the National Welfare Rights Network and the National Council of Single Mothers and their Children criticised the lack of an increase in dole payments, particularly after many single mothers were transferred to Newstart in January.http://www.couriermail.com.au/news/breaking-news/budget-leaves-families-on-a-cliffs-edge/story-e6freono-1226642963466 Budget leaves families 'on a cliff's edge' 15 May 2013 15 May 2013 AAP via couriermail.com.au See also Australia Australian government debt Economy of Australia References 30em Federal budget Category:Australian budgets Australian federal budget Category:Gillard government Category:May 2013 in Australia