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BUDGET 2007 - 2008: BUDGET AT A GLANCE



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BUDGET

AT A GLANCE

Fiscal outlook The 2007-08 Budget provides for an underlying cash surplus of $10.6 billion, the Government’s tenth surplus.

A strong budget allows continuing investment to improve Australia’s long-term economic growth and prosperity.

Economic outlook The Australian economy continues to grow in its longest period of expansion ever recorded.

Since 1996, there are 2 million more people in jobs, real wages are up by 20 per cent. The unemployment rate is at a 30 year low. Household wealth has more than doubled.

Personal income tax reform All taxpayers will benefi t from a further $31.5 billion in tax cuts over the next four years.

From 1 July 2007, the low income tax offset will increase to $750 per year and the 30 per cent threshold will rise from $25,000 to $30,000.

This will further reward effort and improve work incentives for lower income and part-time workers.

From 1 July 2008, the 40 per cent threshold will increase to $80,000 and the 45 per cent threshold will increase to $180,000.

Realising Our Potential A comprehensive investment in Australia’s education sector, covering universities, VET and schools.

$5 billion will be invested in a new Higher Education Endowment Fund to provide a perpetual source of funding for university capital works and research facilities. The Government will make further contributions from future surpluses.

$768 million for universities to simplify and boost funding and to increase funding and enrolment fl exibility.

$222 million for increased income support for tertiary students and an extra 3,500 Commonwealth scholarships.

More assistance to apprentices and the VET sector.

$549 million for 1st & 2nd year apprentices in skill-shortage trades for a $500 education voucher to offset fees and, if under 30, a $1,000 tax-free wage top-up.

$843 million extra to improve the quality of teachers and the education of all Australian school children. $700 tutorial vouchers to help students meet literacy and numeracy standards.

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Improving child care assistance From 1 July 2007, rates of Child Care Benefi t will increase by 10 per cent on top of indexation.

From 1 July 2007, the Child Care Tax Rebate will be available as a direct payment shortly after the end of the year.

These measures help more than 700,000 families.

Investment in land transport infrastructure $22.3 billion will be provided over the fi ve years from 2009-10 for Australia’s road and rail infrastructure, including $16.8 billion for the national network.

Increasing retirement savings for low income earners One-off doubling of superannuation co-contribution for eligible contributions made in 2005-06 to improve superannuation savings for low income earners by $1.1 billion.

Rewarding older Australians and carers $500 one-off bonus payment, to ensure older Australians share in the economic growth they helped create.

$1,000 bonus payment to recipients of the Carer Payment and recipients of both the Carer Allowance and either the Wife Pension or Veterans’ Affairs Partner Service Pension.

$600 bonus payment to recipients of the Carer Allowance.

These bonuses will be tax-free and paid by 30 June 2007.

Sustaining our environment $741 million for practical climate change initiatives, including the doubling to $8,000 of rebates for the installation of solar panels by households.

$10 billion over 10 years to conserve and sustain Australia’s water supply.

$2 billion to extend the Natural Heritage Trust.

Supporting rural areas An additional $314 million in Exceptional Circumstances assistance bringing to $1.6 billion assistance since 2002-03.

$342 million for improved rural services.

$205 million to help primary producers through extending the Agriculture - Advancing Australia initiative.

Strengthening defence and national security $6.1 billion over 10 years to enhance recruitment and retention of military personnel and logistics.

$702 million for national security initiatives to further safeguard against terrorism, including better e-security.

Better health and aged care $772 million for improved detection and treatment of chronic and complex conditions.

$486 million for medical research infrastructure in 2006-07.

$1.6 billion for aged care initiatives.

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