Professional Documents
Culture Documents
10 MAY 2011
© Commonwealth of Australia 2011
ISBN 978-0-642-74695-5
This work is copyright. Apart from any use as permitted under the Copyright Act 1968, no part may be
reproduced by any process without prior written permission from the Commonwealth. Requests and inquiries
concerning reproduction and rights should be addressed to:
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Infrastructure
• $36 billion in investment in roads, rail and ports, including $1 billion in funding for the duplication of the
Pacific Highway
• Removing tax impediments to infrastructure investment
Forecasts Projections
2010-11 2011-12 2012-13 2013-14 2014-15
Real GDP 2 1/4 4 3 3/4 3 3
Employment 2 3/4 1 3/4 1 3/4 1 1/2 1 1/2
Unemployment rate 5 4 3/4 4 1/2 5 5
Consumer price index 3 1/4 2 3/4 3 2 1/2 2 1/2
Nominal GDP 8 6 1/4 5 3/4 5 1/4 5 1/4
OVERVIEW 1
Economic impacts of
natural disasters
The natural disasters of early 2011 were first and foremost human tragedies, but
they will also have a significant toll on the economy and the Budget.
0 0
-1 -1
-2 -2
-4 -4
-5 -5
Coal Agriculture Tourism Other
2 OVERVIEW
Rebuilding after natural
disasters
Natural disasters over the last summer have affected communities across Australia.
The Government is providing $6.6 billion to support recovery and rebuilding from
these disasters as quickly as possible.
OVERVIEW 3
A strong economy
The Australian economy continues to perform better than other advanced
economies and is in a strong position to confront future challenges.
A standout performer among Ready to confront future Our terms of trade are at their highest
advanced economies challenges sustained levels in 140 years, driving
The Australian economy is in a much The Australian economy’s fundamentals an unprecedented mining investment
stronger position relative to many other remain strong, allowing the economy boom.
advanced economies, due in part to the to confront the temporary effects of Increased export capacity is supporting
Government’s decisive policy response the recent natural disasters, and future significant growth in national incomes.
to the global financial crisis (GFC). challenges, from a position of genuine
However, the investment boom will
strength.
Australia was one of the only advanced give rise to some inevitable capacity
economies to avoid a recession during A strengthening economy has pressures.
the GFC, and has since grown at a solid supported strong employment growth.
In these conditions, it is important that
pace — having recently entered its Over the past year alone, more than
the Government does not compound
twentieth year of consecutive economic 300,000 jobs have been created and
these pressures, which is why the
growth. the unemployment rate has fallen to
Government is rapidly returning the
around 5 per cent.
Australia’s GDP is significantly budget to surplus in 2012‑13 as
higher than its pre‑GFC level, while At the same time, underlying inflation planned.
many other advanced economies are has moderated to around decade lows.
struggling to make up lost ground.
(f)
105 Australia 105
9 9
95 95
euro area
3 3
90 90
Japan
0 0
Jun-83 Jun-93 Jun-03 Jun-13
85 85
Dec-07 Dec-08 Dec-09 Dec-10
4 OVERVIEW
Mining Boom Mark II set
to drive growth
The strong outlook for the Australian economy is underpinned by the largest mining
investment boom in its history.
Growth led by the resources The mining industry is planning to two years, income from non‑rural
sector invest $76 billion in 2011‑12 — around commodity exports is forecast to
Australia is facing the largest mining eight times the annual level before increase by around 15 per cent to
investment boom in its history, Mining Boom Mark I, which will boost $203 billion.
driven by ongoing strong demand for Australia’s export capacity.
Increased activity will also boost
Australia’s non‑rural commodities from This investment surge will ramp up employment, with the unemployment
emerging Asia. further in coming years, led by very rate expected to decline further —
Investment in the resources sector will large projects in the liquefied natural reaching 4½ per cent by the June
drive above-trend GDP growth in the gas (LNG) sector. The Australian quarter of 2013.
period ahead, generating strong jobs Bureau of Agricultural and Resource
Boom pressures
growth, increasing our export capacity Economics and Sciences (ABARES)
estimates a total pipeline of resources The mining boom will inevitably see the
and supporting national incomes.
investment of over $380 billion. re‑emergence of capacity constraints,
The high terms of trade are particularly skill shortages, leading to
underpinning record investment Broader benefits of the boom increased wage and price pressures.
intentions in the resources sector. Increased export volumes and high
This, along with a high exchange rate,
commodity prices will lead to increased
will put pressure on those sectors not
national incomes. Over the next
directly linked to the mining boom.
150 150
40 40
100 100
20 20
50 50
0 0 0 0
2002-03 2005-06 2008-09 2011-12 1997-98 2002-03 2007-08 2012-13
OVERVIEW 5
The patchwork economy
While Mining Boom Mark II will drive economic growth, conditions remain uneven
and this will pose challenges for parts of the economy.
Conditions to remain uneven Labour market to tighten further fiscal and monetary policy stimulus
The strength of the overall economy Labour market constraints are likely to are helping to moderate inflationary
masks some significant divergences increase as the mining boom ramps up, pressures as the economy returns to
between industries and regions, with businesses not linked to the boom full employment.
with some sections of the Australian likely to find it relatively more difficult to The Government is dealing with the
community not experiencing the attract and retain workers. short-term costs of natural disasters,
immediate benefits of Mining Boom while making room for strengthening
Price and wage pressures are also
Mark II. private sector activity – particularly for
likely to emerge in some sectors as the
Conditions in certain industries are labour market tightens. the resources boom that is gathering
expected to remain challenging. pace.
Government is taking action
The high exchange rate is weighing The medium-term challenges require
The Budget continues to make the
on activity in some industries — important investments in our workforce,
investments we need to position
particularly exporters in the tourism, boosting skills and participation, while
Australia to take full advantage of the
education and manufacturing ensuring other important challenges are
mining boom.
industries. not ignored.
Australia’s high terms of trade,
For many businesses, these challenges The Government is making further
strong growth outlook and tightened
are compounded by legacies of the investments in areas such as mental
macroeconomic policy settings have
GFC, including a more cautious health and broader health reforms, as
seen the Australian dollar appreciate
consumer and tight credit conditions well as supporting new priorities in
to post‑float highs. In the current
for some borrowers. education, and making sure our regions
macroeconomic context, the high
benefit from the mining boom.
exchange rate and withdrawal of
USD/AUD USD/AUD Per cent Per cent
1.10 1.10 14 14
12 12
1.00 1.00
10 10
0.90 0.90
8 8
0.80 0.80 6 6
0.70 0.70 4 4
2 2
0.60 0.60
0 0
0.50 0.50
-2 -2
0.40 0.40 -4 -4
Apr-84 Apr-93 Apr-02 Apr-11 Dec-90 Dec-95 Dec-00 Dec-05 Dec-10
6 OVERVIEW
Sharing the benefits of
the boom
The Budget makes important investments to address medium‑term challenges and
ensure all Australians benefit from the opportunities provided by the mining boom.
Sharing the benefits The package also takes steps to higher education, hospitals and health
The Government is taking steps in this encourage greater participation in the care, and infrastructure.
Budget to address these medium‑term workforce, particularly from those most
Supporting families and older
challenges by investing in our people at risk of being left behind.
Australians
and ensuring all Australians benefit Health and education The Budget is also ensuring the benefits
from the opportunities presented by the
The Government is also addressing of a strong economy are spread to all
mining boom.
key priorities in health and education Australians, with a range of measures
Investing in our people to ensure the benefits of the boom to provide further assistance to families
Addressing emerging skills shortages are shared, including: new funding and older Australians.
is essential to maintain strong and for the Health and Hospitals Fund
Helping businesses
sustainable economic growth. regional round; mental health; dental
health; rewarding quality teaching; and The Budget also includes measures
Through the Building Australia’s Future supporting students with disability. to reward small businesses that
Workforce package, the Government is invest to grow, and to link Australian
making the investments necessary to Investing in our regions manufacturers to opportunities in the
ensure Australians have the skills they The Budget also ensures our regions resources sector.
need to find jobs, and support growth, are not left behind, by making
both now and into the future. significant investments in regional
Supporting families
Investing in
and small
Australia’s regions
businesses
OVERVIEW 7
Getting back in the black
This Budget delivers on our fiscal strategy and returns the budget to surplus in
2012‑13, despite the impacts of recent natural disasters.
The return to surplus A strong economy requires a years, supported by the highest
The Government is delivering on its strong budget sustained levels in the terms of trade
fiscal strategy despite significant The budget is facing higher deficits in 140 years and an unprecedented
challenges posed by the recent natural in the early years because of slower mining investment boom.
disasters and the lingering effects of the economic growth due to recent This strong growth outlook, with already
global financial crisis on revenue. natural disasters, spending to support low unemployment means capacity
The Government has maintained strict the rebuilding of disaster‑affected pressures are expected to re‑emerge.
fiscal discipline to return the budget to communities and legacy issues from
This outlook highlights the importance
surplus in 2012‑13. This is the fastest the global financial crisis which are
of the Government’s fiscal strategy and
fiscal consolidation in at least 40 years. holding back the recovery in revenue.
our return to surplus.
The fiscal consolidation has required Tax receipts have been revised down by
Delivering surpluses is an important
difficult choices and we have delivered a total of $16.3 billion in 2010‑11 and
way of ensuring that the Government
$22 billion worth of savings and 2011‑12.
does not compound the capacity and
restrained government spending to help However, Australia’s economic price pressures that are expected to
achieve this task. Two‑thirds of these prospects remain strong, with re‑emerge with the unprecedented
savings are spending reductions. the economy expected to grow at mining investment boom.
above‑trend rates over the next two
0 0
-2 -2
-4 -4
-6 -6
-8 -8
-10 -10
-12 -12
Australia Germany Italy Canada France Japan UK US
8 OVERVIEW
Strict fiscal discipline
The Government has delivered on its strict fiscal strategy through identifying
significant savings to fund new priorities, meet the costs of recent natural disasters
and strengthen the budget position.
2 2
0 0
-2 -2
2010-11 2011-12 2012-13 2013-14 2014-15
OVERVIEW 9
Opportunities for more
Australians
In order to make the most of our opportunities, the Government is investing in
Australia’s workforce and economic infrastructure, so that the economy has the
workers it needs and the benefits of the mining boom are spread across Australia.
A strong economy is creating • investing in infrastructure to This Budget puts industry at the heart of
opportunities address capacity constraints; the training effort and continues longer
The mining boom will create job term reform of apprenticeships and the
• cutting business tax to boost
opportunities and boost living national training system.
competitiveness across the
standards for many Australians, but economy; and Spreading opportunity
emerging capacity constraints and
• boosting superannuation to save Despite strong economic growth, not
divergent growth prospects across
some of the gains. all groups and regions are sharing
sectors and regions pose challenges
equally in rising prosperity. Jobless
for policy makers. This Budget builds on these measures
families, single parents, disengaged
with new steps to address potential
The mining boom is creating labour young people and people with disability
capacity constraints in Australia’s
demand in the mining and related can all benefit from the opportunities
workforce and infrastucture.
sectors, but broader economic and provided by a strong economy.
demographic changes are also driving Training to build capacity The Government is assisting more
labour demand in health, aged care, Economic growth means more demand Australians to participate through a
renewable energy and services. for skills not just in mining and combination of incentives, supports
Last year, the Government announced construction but across the economy. and responsibilities.
a set of measures that respond to the The Government is investing to help
mining boom: Australians get the skills they need to
find jobs and meet industry needs.
Improving skills
10 OVERVIEW
Building Australia’s
future workforce
The Government’s Building Australia’s Future Workforce package provides
immediate skills assistance to industry and apprentices, sets the path for meeting
medium-term skills needs and provides assistance and encouragement to
participate in the workforce for groups with lower participation levels.
Cert. III/IV
Cert. I/II
Year 11
Year 12
Post Graduate
Bachelor Degree
Advanced
Increased skills levels are associated with lower unemployment and increased wages (March‑June 2009)
OVERVIEW 11
Putting industry at the
heart of the training effort
The Government is investing $3 billion over six years in training to meet emerging
skills shortages, including $1.75 billion for reform of the training system.
Partnering with industry to deliver the resources construction and aged Recognising skills hotspots
skills in demand care sectors identified as immediate The Fund will be supported by the
The Government is putting industry at priorities. establishment of a new National
the heart of the training effort to help Grants will be provided through a Workforce and Productivity Agency
meet emerging skills shortages. competitive process that will require from 1 July 2012. The Agency will work
a commitment from employers to closely with industry to identify critical
A $558 million National Workforce
contribute a targeted average of skills needs and build a more skilled
Development Fund will deliver around
50 per cent to the cost of training. and capable workforce.
130,000 high quality training places
directly tailored to industry skills needs. The Fund will also seek to address Basic employment skills
The training will require co-investment the diverse skills needs of regional The Government will invest
from industry, recognising the shared Australia by ensuring a fair share $143 million to improve the basic
responsibility for training between the of funding is directed at supporting employment skills of job seekers by
Government and industry. regional employers, workers, providing 30,000 additional places in
apprentices and job seekers in areas of the Language, Literacy and Numeracy
The new fund will focus on high need skills needs. Program.
industries and critical occupations, with
200 200
All trades
150 150
100 100
Skilled vacancy index
50 50
Apr-09 Apr-10 Apr-11
12 OVERVIEW
A training system for the
future
We are investing in a smarter apprenticeship system that works for more Australians
and longer‑term reform to drive productivity.
Accelerated Australian the best option when considering an The Government will set tougher new
Apprenticeships apprenticeship. reform standards for its $7 billion
While many Australians start an investment over five years in the
An expansion of the Apprenticeship
apprenticeship, less than half of National Agreement for Skills and
Access Program will also assist
those complete them. To ensure the Workforce Development.
vulnerable job seekers to take on an
system works for more Australians apprenticeship. This will include increasing the focus
the Government is investing over on higher level training and aligning
The package also funds new
$200 million to support mentoring, effort with economic needs.
approaches for apprentices to learn and
progression and completions.
progress more quickly once standards An additional offer of up to $1.75 billion
The Government will improve have been met, instead of progressing over five years will be available to
apprenticeship completions through based on time. States and Territories who sign up
greater support for mentoring. Over to ambitious reforms of the training
300 mentors per year will be funded A fresh vision for skills
system, negotiated over coming
to assist almost 40,000 eligible A high quality and responsive training months.
apprentices in traditional trades, as system will be key to meeting longer
well as small and medium enterprises. term labour demand needs and
In addition, 144 apprentice advisors sustaining economic growth.
will also assist school leavers to select
Automotive &
Wood trades
Hairdressers
Engineering, ICT &
Electrotech &
Construction trades
Textile, clothing &
Food trades
engineering
horticultural
telecom
footwear
science
trades
2005 Average
OVERVIEW 13
Requiring greater
personal responsibility ...
Despite solid employment growth and a falling unemployment rate, some
groups of Australians are experiencing low rates of participation and higher
unemployment.
Comparison of employment rates of single mothers in Australia and selected OECD countries
14 OVERVIEW
... balanced with extra
services and support
The Government’s Building Australia’s Future Workforce package balances greater
responsibility through increased participation requirements coupled with additional
support such as training, child care and employment services, and greater rewards
to work.
Activating disengaged youth The new Indigenous Youth Career From 1 January 2012, teenage parents
The Government will extend ‘Earn or Pathways Program will provide School on income support in 10 locations
Learn’ requirements to those aged 21. Based Traineeships to assist the will have to agree a participation plan
This is part of broader changes to Youth transition from school into further focused on the parent attaining Year 12
Allowance (other), which will delay education and/or work. and school readiness for their children.
eligibility for Newstart Allowance by Very long-term unemployed Jobless families in these locations
one year and reward young workers with young children will be required to
The Government will provide
with a more generous income test. participate in interviews and workshops
$95 million for wage assistance to
The Government will also provide reward employers who give a very to improve school and employment
$68 million to fund activities for Early long-term unemployed person a job, readiness commencing on 1 July 2012.
School Leavers to help them develop and $133 million to fund increased The Government will also extend
basic employability skills. work experience requirements from income management to five more sites
The Government will provide 6 months to 11 months in a year. and trial innovative service delivery.
$772 million to increase Family Tax New approach to disadvantaged Improving employment services
Benefit Part A for dependent 16 to 19 locations Following extensive consultation, the
year olds in full-time secondary study, Government will introduce important
The benefits of economic growth are
to help families meet costs and support enhancements that build on the current
uneven and entrenched disadvantage is
their teenagers to stay in school. employment services arrangements.
concentrated in some areas.
50 50
40 40
30 30
20 20
10 10
0 0
Degree Diploma Certificates 2 to 4 Year 12 Year 11/Certificate
1 or below
OVERVIEW 15
Removing impediments
to infrastructure financing
The Budget recognises the important role of the private sector in financing and
constructing nationally significant infrastructure, complementing the Australian
Government’s significant public investments.
Infrastructure Investment
Incentive Package
16 OVERVIEW
Investing in infrastructure
for the future
The Budget continues the Government’s strong record of infrastructure investment,
including under the flagship Nation Building program.
Nation Building The Link will improve public transport 2012. Early release sites in New South
The Government is investing to the Moreton Bay region reducing Wales, Victoria, Queensland and South
$36.2 billion in roads, rail and ports reliance on the road network. Australia are near completion, with
over six years from 2008‑09. Moreton Bay is the third largest local construction expected to begin on
government area in Australia. further sites across mainland Australia
The Nation Building program of this year.
construction and maintenance for Bruce Highway
Australia’s land transport network The Government is continuing to invest Investing an additional $1 billion
targets those projects that deliver the in multiple upgrade works along the in the Pacific Highway
highest benefits to the nation. Nation length of the Bruce Highway between The Budget provides $1.0 billion over
Building also includes the Roads to Brisbane and Cairns. This includes the four years to 2014‑15 for planning,
Recovery and Black Spots programs. proceeding with five projects which route assessment, design and other
were previously deferred to assist with work for the duplication of the Pacific
Improving commuter rail
flood reconstruction efforts. Highway in New South Wales. This
The Government is bringing forward builds on the Government’s previous
$133 million of the Commonwealth’s National Broadband Network
$3.1 billion commitment to the Pacific
contribution to the $1.2 billion Moreton In Tasmania, the NBN has already been Highway.
Bay Rail Link. rolled out past 4,000 premises, with
another 11,150 premises expected The Pacific Highway is a key travel route
to be covered by the second half of for the eight million Australians that live
in the Sydney to Brisbane corridor.
The Government has almost doubled road spending and quadrupled rail
spending while at the same time has started rolling out the NBN. Some
recent major land transport infrastructure projects include:
OVERVIEW 17
Investing in our mining
regions
The Budget provides almost $1.0 billion to commence work on the first infrastructure
projects funded from the $6.0 billion Regional Infrastructure Fund.
Reinvesting the proceeds of The RIF funding allocations will projects like Gateway WA that will be of
the resources boom in mining promote development and job lasting benefit to regional communities.
communities creation in mining communities and
Delivering a fair return to resource
The Budget provides $916 million for communities which support the mining
communities
the first eight infrastucture projects sector.
The Government has committed to
to be funded from the Regional Funding from the RIF will go to projects allocate at least $2.0 billion from the
Infrastructure Fund (RIF). The RIF including rail, road, ports, airports, RIF to projects in each of the resource
will provide $6.0 billion over the energy, communications, water and states of Queensland and Western
11 years to 2020‑21 for investment in other critical economic infrastructure. Australia.
infrastructure in regional Australia.
It will also provide a clear benefit to Allocations to the other States and
The RIF allows the Government to invest Australia’s economic development, and Territories will have regard to the
the proceeds of the mining boom to to investment in Australia’s resource level of MRRT raised within those
address urgent infrastucture needs. and export capacity. jurisdictions.
$5.6 billion of the RIF will be funded Infrastructure Australia will review This means more rail, roads, ports and
through the Minerals Resource Rent Tax existing regional infrastructure plans to other crucial infrastructure to support
(MRRT). ensure that RIF funds are allocated to the workforce in critical mining regions
and in communities that support mining
regions.
18 OVERVIEW
Further investments in our
regional communities
All Australians, including those living in regional communities, can share in the
long‑term prosperity that comes from a more productive and stronger economy.
Economic Community
infrastructure, such as bridges, infrastructure, such as sporting
transport hubs, and water facilities, parks and child care
OVERVIEW 19
Balanced growth in our
regions ...
Promoting balanced growth across our regions and major cities is a key objective
of the Government. This means regional Australians will not have to compromise on
first class education and training for their kids, or quality health care for their loved
ones.
Sustainable Australia making our regions more attractive The Budget provides new funding to
Australia is a diverse country. Over places to live, work and raise a family. support the sustainability of growing
eight million people live outside our The NBN will connect our regions regional centres including:
major capital cities. Some regional with the cities at the same wholesale
• $29 million to improve strategic
areas are struggling with pressure price for comparable products
planning for regional and coastal
on their existing infrastructure, while Australia‑wide.
high growth centres, reducing red
others are having difficulty attracting The Government is introducing a tape for businesses and provide
enough workers with the right skills. number of new initiatives to encourage certainty for investment;
Investments in regional Australia increased skilled migration to regional
• $11 million to support regional
areas, including specifying for the
The Government is investing cities to promote the benefits and
first time 16,000 Regional Sponsored
$4.3 billion in regional hospitals, health opportunities of living and working
Migration Scheme places, fast‑tracking
care, universities and roads outside there; and
permanent residency for 457 visa
the big capitals to lift living standards, • $10 million to develop a set of
holders who have spent two years in
provide the best services and help sustainability indicators to help
regional Australia, introducing Regional
communities reach their potential. improve decision making as it
Migration Agreements and providing
These investments will improve the priority processing for regional visa relates to sustainability issues.
liveability of regional cities and towns, categories.
60 60
50 50
40 40
30 30
1901 1927 1953 1979 2005
Capital cities Rest of Australia
20 OVERVIEW
... and our urban centres
The Government’s National Urban Policy, together with our investments in regional
Australia, will help take the pressure off suburbs by ensuring our cities promote
innovation and become more productive, sustainable and liveable.
National Urban Policy Investing in suburban areas intelligent transport system on the
Long‑term strategic planning of The Government will invest Victorian M1 West Gate Freeway.
Australia’s capital cities and investment $100 million in a new Suburban Jobs All projects will be jointly funded with
in urban infrastructure is critical to program to promote local jobs closer the relevant state government.
boost the productive capacity and living to residential areas. This program will
standards in our capital cities. provide infrastructure support in the Urban renewal
outer suburbs to attract employers to The $20 million Urban Renewal Fund
To assist this, the Government is
areas with the highest travel times, like will help improve the planning and
currently funding projects in every
Liverpool in Sydney and Dandenong in design of urban areas to promote
capital city, including the duplication
Melbourne. productive, sustainable and liveable
of the F5 in Sydney, and the Regional
communities.
Rail Link and Western Ring Road in Reducing congestion
Melbourne. In total, we are investing The Government will invest $61 million COAG’s reform process
over $13 billion in our cities. in the development of National Smart The Prime Minister will also begin a
Under the National Urban Policy, Managed Motorways to reduce rigorous COAG process that asks state
the Government will build on these congestion and workers’ travel times. premiers to lead the development
investments with new initiatives of Commonwealth-State reforms
Examples of projects include variable
focusing on the sustainability of our that address sustainability issues of
speed limits on the Gateway Motorway
outer suburbs. relevance to their jurisdictions.
in Queensland and upgrading the
Nation Building
Investment: Road and Rail
$7,433 million
OVERVIEW 21
Making mental health a
national priority
The Government is making mental health a national priority by delivering a
significant investment of $2.2 billion in mental health reform and committing to
ongoing action by developing a Ten Year Roadmap for Reform.
Mental health affects nearly all 2011‑12 in its National Mental Health It will also require collaboration
Australians Reform package to deliver additional across all levels of government,
Nearly one‑third of Australians will services, a greater focus on prevention non‑government organisations,
experience a mental illness at some and early intervention, and a better individuals and providers.
stage in their lives, with impacts on integrated system.
A Ten Year Roadmap for Reform
their families and communities. The Budget includes new initiatives of That is why the Government is
Despite investment at all levels of $1.5 billion over five years and builds committing to ongoing mental health
government, the system can be too on recent measures being rolled out reform by developing a Ten Year
crisis‑driven, instead of focusing on including: Roadmap.
early intervention and prevention to • $443 million to tackle suicide; and The Roadmap signposts a high‑level
help people stay well.
• $181 million in mental health vision for the system.
Many people also experience difficulty investments in the 2010‑11 Budget. The Government has, and will continue
in accessing services and navigating a
These investments represent a first to, engage with expert stakeholders
fragmented and complex system.
instalment in longer‑term reform, which and States and Territories to inform
A first step towards reform will require sustained focus. development of the full Roadmap,
The Government is providing funding which will be finalised in 2011.
of $2.2 billion over five years from
20 20
15 15
10 10
5 5
0 0
16–24 25–34 35–44 45–54 55–64 65–74 75–85
22 OVERVIEW
Delivering on National
Mental Health Reform
This Budget places a greater focus on prevention and early intervention and
delivers a more integrated mental health care system, as an important first step
towards longer term reform.
Priorities for investment • $201 million for a new National illness have one contact point for all of
The Government’s National Mental Partnership to help guide reform at their clinical and social care needs.
Health Reform package includes the a State level.
A National Mental Health
following key Budget initiatives over five Expanding effective programs Commission
years:
The mental health package will direct The Government has also allocated
• $571 million to expand services and new funding towards expanding $32 million over five years, including
provide a single point of contact for effective programs, such as: $12 million in new funding, to establish
people with severe mental illness a new, independent National Mental
• 30 new headspace sites, to achieve
to coordinate clinical and social Health Commission that will report in
national coverage of 90 sites across
support services; the Prime Minister’s portfolio.
the country; and
• $492 million for prevention and This Commission’s core function will be
• building on 2010‑11 Budget funding
early intervention mental health to independently monitor, assess and
to establish up to a total of 16
services for children and young report on how the system is performing.
Early Psychosis Prevention and
people;
Intervention Centres (EPPIC). This will increase accountability and
• $220 million to improve access to transparency in the mental health
It will also direct funding to achieve
the primary health care system for system and give national prominence to
more coordinated services, such as
people with mental illness; and mental health issues.
ensuring that, for the first time, patients
with severe and debilitating mental
National Partnership with National Mental Health Commission
the States $201 million $12 million
Better coordinated care
for severe mental illness
$571 million
OVERVIEW 23
Delivering the
Government’s broader
health reforms
The Government will invest an extra $20 billion in public hospitals — matched by
new national standards to provide better information on the health system and
make sure that money goes straight to hospitals and straight to patients.
Delivering on health reform Reforming primary health care A well managed health system
In February 2011 the Commonwealth, A strong primary health care system is The benefits of increased growth
and all States and Territories signed a key to providing patients with the health funding will be enhanced by a national
new deal on National Health Reform. care they need when and where they funding pool to improve transparency
need it. and accountability of funding flows.
The Government will pay 50 cents in
every new dollar of hospital spending The new agreement will lead to a This means that hospitals will be
under activity‑based funding, with more integrated primary health care paid the same way, delivering
guaranteed funding of $16.4 billion system including by bringing forward unprecedented transparency in hospital
from 2014‑15 to 2019‑20. the establishment of more Medicare funding arrangements.
Locals.
The States and Territories are also Better health system reporting will be
receiving $3.4 billion over four years It also fast tracks reforms to after‑hours achieved through a National Health
to improve emergency departments, GP care to enable Medicare Locals to Performance Authority.
elective surgery, and provide an extra plan, and support, local face‑to‑face
1,300 sub‑acute hospital beds. GP after‑hours services.
40 40
30 30
Pre-existing funding
(Specific Purpose Payment as a proportion of
20 hospital costs) 20
10 10
2000-01 2003-04 2006-07 2009-10 2012-13 2015-16 2018-19 2021-22 2024-25
24 OVERVIEW
Improving access to
dental care: first steps
to reform
The Government is determined to tackle the long‑term challenges in dental health,
by taking action to address the capacity of the dental workforce now, as well as
strengthening Australia’s dental system for the future.
Supporting the dental workforce to the community, particularly for those This new investment will help to ensure
Many Australians are able to access on low incomes. that the dental workforce is well placed
good dental care; however, there are to support significant reform next year.
The scheme will provide support for
some who are unable to access this in a up to 150 internship places, as well Prioritising areas for future
timely manner. as mentoring roles, targeted at the investment
The Government is investing public dental system. This means more The Government will establish a
$53 million over four years to introduce dentists in the public system. National Advisory Council on Dental
a voluntary dental internship year. The Funding will also be used to establish Health to provide advice to government
internship scheme will offer greater infrastructure to support the internship on dental health, including prioritising
opportunities for graduates to gain places and to cover the costs areas for future investment.
experience in the public dental system. associated with the development of The 12 member Council will include
This will help to increase the capacity the curriculum for the scheme, to representatives from a range of
of Australia’s public dental workforce to ensure participants receive clinically stakeholder groups and organisations.
provide additional dental care services appropriate training.
600 600
500 500
400 400
300 300
200 200
100 100
0 0
2001 2002 2003 2004 2005 2006 2007 2008 2009
OVERVIEW 25
Improving regional
health services ...
The Government is investing $1.5 billion in regional health infrastructure in this
Budget which brings the Government’s commitment to regional health infrastructure
to $2.9 billion over the last three years.
Health and Hospitals Fund Investing in health areas of Over 60 major regional projects
(HHF) — regional priority round national priority The HHF regional priority round funds
The Government is investing an These investments are consistent 63 major projects across Australia
unprecedented $1.8 billion over with the Government’s health reform including:
six years in critical regional health priorities and will improve acute • the Bega Valley Health Service
infrastructure under the HHF regional care facilities and primary health Development (NSW);
priority round. infrastructure by:
• the Palmerston Hospital (NT)
This includes $1.33 billion for • expanding new facilities and patient
63 projects across Australia and accommodation services so that • the Bringing Renal Dialysis and
$475 million for a further regional patients can access care closer to Support Services Closer to Home
priority round. home; program (WA);
This record investment provides • improving acute care and primary • Regional Mental Health Community
a much needed boost to regional health facilities at local health Care Units (QLD);
hospitals. centres to better treat chronic • the Port Lincoln Health Service
diseases; and Redevelopment (SA); and
It builds on the $1.1 billion allocated
in the 2009‑10 Budget to upgrade • directing funding toward • the Integrated Regional Cancer
regional hospital infrastructure and infrastructure catering for mental Service, Geelong (VIC).
invest in regional cancer centres and and dental health.
This Budget also includes $475 million
training infrastructure.
for a further regional priority round.
26 OVERVIEW
... and regional education
services across Australia
More funding for regional higher education will be delivered through a regional
priorities round of the Education Investment Fund and higher payments to
regional universities.
Investing in regional education Regional priorities round of the Funding for regional universities
The Government has committed to Education Investment Fund (EIF) Funding for universities with regional
improving outcomes for regional The Government is providing campuses will be increased by
Australians now and into the future. $500 million for a dedicated regional $110 million over the next four years
priorities funding round of the EIF for through an increase in regional loading
In this Budget the Government is
priority capital development projects payments.
investing in skills and participation to
keep our economy moving forward, in regional higher education and Changes to the regional loading
including regional skills initiatives. vocational institutions. allocation formula will ensure that this
It is expected that the round will funding is targeted to campuses that
The Government is making significant
commence this year, and that funds most need support.
investments in both our higher
education institutions and in our will be fully committed by the end of These changes recognise the additional
schools to support regional students. 2012‑13. challenges of delivering higher
The Government has already committed education in regional areas by providing
This Budget continues to build
over $690 million to regional Australia regional universities with additional
on the higher education reform
from the EIF. Combined, these funding support.
package Universities, Innovation and
Education Revolution announced in the investments total over $1.1 billion.
2009‑10 Budget.
OVERVIEW 27
Support for families
This Budget makes assistance for families more flexible. It builds on a range of
initiatives introduced since 2007, including personal income tax cuts, the increase
in the Child Care Rebate, the introduction of the Education Tax Refund and Paid
Parental Leave.
Supporting families with From 1 July 2011, eligible families can Parents will also have the option of
teenagers request an advance on their annual having this payment made directly to
The Government will increase the entitlement of up to 7.5 per cent (to their child care provider as a reduction
annual rate of Family Tax Benefit (FTB) a maximum of $1,000) at any time on their bills.
Part A for families with dependants throughout the year.
Expanding the Education Tax
aged 16 to 19 years who are enrolled in More choices for child care Refund (ETR)
full time secondary school study by up payments The ETR assists parents and carers
to $4,208 to equal the rate for 13 to 15
The Government is giving parents with expenses such as computers,
year olds. This will help families meet
greater choice about when and how stationery and textbooks which can
the extra costs of raising teenagers and
they receive their Child Care Rebate place pressure on the family budget.
support families to keep their children
payments. To assist in managing The Government is extending the ETR,
at school.
household budgets, families will be at an estimated cost of $460 million
Flexible family payments able to choose to have their Child Care over four years, to cover school
The Government will help families Rebate paid at the time they incur their uniforms, including optional uniforms
through more flexible access to their child care costs, usually fortnightly and sports uniforms.
FTB Part A, to meet unexpected or weekly.
expenses, such as a repair bill.
6000 6000
An An
5000 extra extra 5000
$4208 $3741
4000 4000
3000 3000
2000 2000
1000 1000
0 0
1 July 2011 annualised rate 1 January 2012 annualised rate
Increase in FTB Part A for families with teenagers enrolled in full time secondary study
28 OVERVIEW
Support for low income
earners and seniors
The Government is supporting low income earners through more timely assistance,
and improving the quality of life of seniors by increasing pensions and rewards
for work.
Support for low income earners during the year in their regular pay. Rewarding working seniors
Payment of the Low Income Tax Offset Workers with income of $50,000 will From 1 July 2011, age pensioners will
(LITO) will be brought forward to deliver get an extra $140 during the year. benefit from an improved Work Bonus
more timely assistance to households Increasing pensions which rewards older Australians who
during the year, improving the continue to participate in the workforce.
The Government’s historic reforms to
immediate rewards for work and helping
pension arrangements have increased Age pensioners who work will be able
with cost of living pressures.
support for age pensioners. to earn up to $250 per fortnight above
Currently, half of the LITO is delivered the income test threshold before their
Since the reforms began in September
to workers during the year through pay pension is affected, providing an
2009, the maximum pension rate has
as you go (PAYG) withholding, with the extra $25 million to age pensioners in
increased by $128 per fortnight for
rest delivered later in their tax return. 2011‑12.
singles and $116 for couples.
From 1 July 2011, 70 per cent of LITO
In addition, the Government has
will be paid when workers need it — A new payment for POWs established the Advisory Panel on
reducing the tax workers pay through Acknowledging their service, former the Economic Potential of Senior
the year. Prisoners of War from World War II and Australians, to examine how Australia
The LITO benefits low and middle the Korean War will receive a $500 per can best harness the broad life
income earners. Workers with income fortnight recognition payment from experience and intellectual capital that
of $30,000 will get an extra $300 20 September 2011. seniors contribute.
700 700
650 650
600 600
550 550
500 500
Sept 07 Mar 08 Sept 08 Mar 09 Sept 09 Mar 10 Sept 10 Mar 11
Without pension reform With pension reform
OVERVIEW 29
Advancing tax reform
The Government is taking further steps along the tax reform road — with a focus on
better incentives and integrity in the system.
Improved incentives Fairness and integrity The Entrepreneurs’ Tax Offset has not
The Budget includes a substantial set It is important that everyone pays their achieved all its objectives but has
of tax reforms to improve incentives for fair share of tax so that others do not generated high compliance costs.
investment and workforce participation. have to shoulder an unfair burden. The From 2012‑13, assistance to small
Budget contains a number of measures business will be delivered instead
To promote investment, designated through a company tax rate cut, instant
that support the integrity of the tax
infrastructure projects will be able write‑off of all assets costing less than
system, with that revenue then available
to carry forward losses with an uplift $5,000, and a new measure allowing
for other priorities.
factor to maintain their value. an immediate deduction for the first
The fringe benefits tax (FBT) valuation $5,000 of a motor vehicle.
To improve workforce incentives, the
of car benefits will be reformed by
Dependent Spouse Tax Offset will be Tax compliance measures will help
removing the incentive for people to
phased out for people under 40 years of deliver fairness in the tax system. These
drive their car further in order to obtain
age. Taxpayers with invalid dependent include improved reporting of taxable
a larger tax concession, and in the
spouses and selected other groups will payments made to some contractors
process burn more fuel.
not be affected. and stronger action against fraudulent
To reduce access to income splitting ‘phoenix’ activity, fraudulent tax refund
To provide more cash in low‑income
by high‑income earners, the LITO will claims, and non‑payment of tax on
earners’ regular pay, a greater
no longer be available for the unearned government payments.
proportion of the Low Income Tax Offset
income of minors.
(LITO), up to an additional $300, will be The Tax Forum, to be held in October,
provided during the year. will consider further tax reform.
30 OVERVIEW
Advancing opportunities
for Indigenous Australians
Indigenous Australians, particularly youth, will benefit from targeted measures in
the 2011‑12 Budget, as well as from the Government’s investment in mental health
and in participation and skills. Sustained effort over the long term will be critical to
achieving tangible results in reducing Indigenous disadvantage.
OVERVIEW 31
Supporting children with
disability
The Government is investing in a range of measures in this Budget to assist children
with disability so that all Australian children are supported to achieve their best.
A commitment to all children living in rural and remote areas to help This measure will provide an
The Government wants to ensure meet the additional costs of accessing opportunity to identify the strategies
all children have the skills and services. which most improve the learning
opportunities to participate in society. experiences of these students.
The Government will provide an
This means investing in measures additional $29 million for the Helping Ensuring appropriate assistance
that improve educational outcomes Children with Autism program to meet for the future
and promote inclusion for all children, increased demand for early intervention The Government is currently reviewing
particularly those with disability. services provided through the initiative, the funding arrangements for schooling,
A better start for children with bringing funding to $131 million over including investigating how to best
four years.
disability meet the needs of different students,
Delivering on its election commitment, Immediate support for students including those with disability.
the Government will provide The Government is also providing To improve consistency and service
$147 million to help families with $200 million over three years to support delivery, the Disability Standards for
early intervention services for eligible students with disability. The measure Education are also currently under
children with disability through grants will assist schools and teachers to meet review and work is underway to develop
of up to $12,000 per family, capped at student needs by offering coordinated a nationally consistent definition of
$6,000 a year. A one‑off payment of support and connecting students with students with disability.
$2,000 will also be available to children services.
5-18 years
$200 million to assist schools and teachers to meet the needs of students with disability
by offering coordinated support and connecting students with appropriate services
up to 7 years
5 years
up to 7 years
32 OVERVIEW
Making every school a
great school
The Government believes that every student in every school deserves a great
education and is investing $60 billion over the next four years to achieve this.
Promoting high performance in New pathways into teaching The Government is delivering
teaching The Teach Next initiative will invest substantial investments in modernising
Research shows that quality teaching is $18.1 million to provide a new pathway infrastructure, enhancing school
the single most important school based into a teaching career for professionals autonomy and rewarding high
contributor to student achievement. with specialist qualifications or relevant performing schools. It is also driving
This Budget invests $872 million experience to enhance the diversity of significant reforms in transparency and
in our schools and delivers on two the teaching workforce and to promote consistency through the My School
election commitments to continue the ‘real‑world’ links in the classroom. website and national curriculum.
Government’s support for high quality The Government is also investing
Investing in our children’s future
teaching. $222 million to extend and expand the
These measures build on the
National School Chaplaincy program
Rewarding our great teachers Government’s ambitious reform agenda
to provide chaplaincy and wellbeing
The National Rewards for Great for Australia’s schools.
support to students and school
Teachers program will provide We have almost doubled school communities in over 3,500 Australian
$425 million over the next four years, investment, providing $64.9 billion over schools.
with $125 million each semester four years compared to $32.9 billion
from 2014, to reward top performing provided by the previous government.
teachers with a bonus of up to
10 per cent of their salary.
25 $billion $billion 25
Estimates/projections
20 20
15 15
10 10
5 5
0 0
2002-03 2004-05 2006-07 2008-09 2010-11 2012-13 2014-15
OVERVIEW 33
Supporting Australian
small businesses
The Government recognises the vital contribution made by small businesses to the
Australian economy and is providing an environment in which small businesses can
grow and prosper.
Supporting small business Additional taxation benefits These measures will reduce tax
Despite the current resources boom, The Government will allow small payable or improve cash flow for up to
the uneven nature of growth in our businesses to claim up to $5,000 as an 2.7 million small businesses.
patchwork economy means that not all immediate deduction for motor vehicles Advice and support
small businesses are prospering. acquired from 2012‑13. The remaining
Through the recently launched
The Government recognises this and is cost is depreciated at 30 per cent
Adviser Finder tool, the Government is
already introducing lower and simpler (15 per cent in the purchase year),
improving small business access to the
small business taxes by allowing which was the previous treatment for
$50 million a year Enterprise Connect
instant write off for all assets costing the entire cost of the motor vehicle.
Centres and the $42.5 million Business
less than $5,000 from 2012‑13. Cars and vans are often a small Enterprise Centres.
Simpler depreciation will apply to business’s main asset, so an immediate
long‑life assets as well. write‑off on motor vehicle purchases
Small Business Support Line
will assist with this significant cost. The Government is providing
The Government is also introducing,
$7.1 million to continue its highly
from 2012‑13, an early reduction in the The Government will also reduce Pay successful Small Business Support
company tax rate to 29 per cent to allow As You Go instalments for 2011‑12 Line. The Support Line has received
small business companies to reinvest for the majority of small businesses over 27,000 calls and over 3,000
and grow. providing a $700 million cash flow emails, with strong regional interest.
benefit.
=
Anna gets an extra $4,250 deduction, which
means an extra tax benefit of $1,275
(she has a marginal tax rate of 30 per cent)
34 OVERVIEW
Linking our manufacturers
to resource boom
opportunities
Through the new $34.4 million Buy Australian at Home and Abroad package, the
Government is linking Australian suppliers and manufacturers to opportunities in
the resources sector and ensuring that they share in the returns from our current
resources boom.
The importance of manufacturing This package responds to the • leveraging off the nationwide
Manufacturing is an important and challenges and opportunities emerging Enterprise Connect network to give
integral part of the Australian economy. from the current patchwork economy small and medium enterprises
The mining boom creates both and the high Australian dollar by (SMEs) in the manufacturing sector
opportunities and challenges for all assisting manufacturers to take the skills and knowledge needed to
industries, including manufacturing. advantage of new growth prospects. integrate into global supply chains;
The Building Australia’s Future This package will help manufacturers to • embedding an industry capability
Workforce package will assist in build on existing skills and identify new specialist within major projects
meeting skills and training needs supply opportunities in the resources in the resources sector to ensure
across the manufacturing sector. sector. that Australian manufacturers are
being considered in the design and
Supporting our manufacturers Key initiatives include:
procurement of these projects; and
The Government is working to • new Supplier Advocates in critical
• establishing a Resources Sector
ensure the manufacturing industry industry sectors who will help
Supplier Advisory Forum and
benefits from the mining boom with manufacturers in these sectors
Resources Sector Supplier Envoy
a $34.4 million package to assist identify opportunities for Australian
to champion Australian industry
Australian manufacturers. industry to develop a competitive
participation in the resources
advantage;
sector.
25 55
20 50
15 45
10 40
5 35
0 30
1989-90
1990-91
1991-92
1992-93
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
OVERVIEW 35
Climate change — moving
to a clean energy future
The Government will put a price on carbon to drive investment in clean energy,
transforming our economy and securing future competitiveness.
Tackling climate change The Government will use every cent The Government is considering
Australia is one of the world’s top raised from the carbon price to assist the details of the carbon pricing
20 polluters, releasing more pollution households, support jobs in the most mechanism. The impact on the budget
per person than any other country in affected industries, and to encourage will be reported in the next budgetary
the developed world — including the the transition to a clean energy future. update after the scheme’s design has
United States. been finalised.
Households will receive generous
Many other countries are already assistance to meet the costs that Reforming the valuation of car
cutting their pollution levels. For may be passed on — more than fringe benefits
example, 32 countries and 10 US 50 per cent of the revenue will be The Government will also reform
States already have emissions trading used to assist households. Pensioners the fringe benefits tax valuation of
schemes. and low‑income households will be a car benefits. This will remove the
priority, with millions of households unintended tax incentive for people
The carbon price will work by expected to be better off. The
putting a price on every tonne of to drive their vehicle further than they
assistance will be permanent. otherwise would in order to obtain
pollution produced. Less than 1,000
companies — the largest polluters in As all revenue raised will be used to a larger tax concession, and in the
our economy — will be required to pay. assist households and businesses and process burn more fuel.
fund climate programs, the scheme will
be broadly budget neutral.
25 25
20 20
15 15
10 10
5 5
0 0
Total greenhouse gas emissions (2005) - Australia is one of the biggest per capita carbon polluters in the world
36 OVERVIEW
Protecting our unique
environment
The Government is providing additional support for the environment through the
continuation and expansion of the Environmental Stewardship Program and a new
Wildlife Corridor Planning initiative.
Environmental Stewardship The funding will support conservation Towards a better environment
The Government will provide of up to an additional 34,000 hectares The Government is progressing other
$84.2 million over four years for the of habitat through new contracts important environmental initiatives.
continuation and expansion of the initiated over the next four years.
Through its marine bioregional planning
Environmental Stewardship Program to Wildlife Corridor Planning process, the Government is working
continue to protect Australia’s unique
As part of its commitment to taking a towards sustainable use of our marine
biodiversity.
strategic landscape‑scale approach to resources and establishing a network of
As part of the $2 billion Caring for our biodiversity, the Government will invest marine protected areas, consistent with
Country initiative, the Environmental $10.0 million over three years in the its election commitment.
Stewardship Program recognises the National Wildlife Corridors Plan. The Government will improve EPBC Act
important role that landholders play
The Plan will develop and pilot a assessment processes to better
in protecting our environment. The
national framework for Wildlife Corridor manage the cumulative impacts of
program involves partnerships with
Planning to ensure effective migration development.
private landowners through contracts
of species and guide landscape‑scale The Government will also progress
(of up to 15 years) to manage and
conservation planning and investment national product stewardship legislation
protect nationally significant habitats
across governments, private investors and introduce a scheme for recycling
which are home to threatened species.
and regional community groups. computer and television waste as part
of the National Waste Policy.
20 20
Weeping Myall
Woodlands 0 0
OVERVIEW 37
Maintaining the integrity
of Australia’s borders
The protection of our borders remains a priority for the Government, with continuing
investment in measures to prevent, deter and disrupt people smuggling as well as
initiatives to implement a breakthrough Regional Cooperation Framework.
Regional Cooperation Framework Prevention and deterrence • extending the lease of the ACV Triton
The Government will provide The Government is investing maritime patrol vessel at a cost of
$292 million to support a Regional $95 million to work with governments $62 million; and
Cooperation Framework agreed at of regional source and transit countries • continuing extra aerial surveillance
the recent Bali Process Ministerial to: in support of the interception of
Conference through: people smuggling ventures.
• strengthen migration and border
• a cooperative transfer agreement management capacity; Assessment and prosecution
to transfer 800 irregular maritime
• establish processes for the return An additional $108 million will be
arrivals (IMAs) to Malaysia; and
and resettlement of IMAs; and provided to maintain the Government’s
• accepting 4,000 genuine refugees rigorous but fair asylum seeker
• prevent and disrupt people
currently in Malaysia through processing system, including for
smuggling ventures by liaising and
an increase in the Humanitarian scrutiny of refugee claims.
cooperating with key government
Program.
law enforcement agencies. To complement the new offences and
These measures along with other increased penalties for criminal groups
Surveillance and detection
Government border security initiatives involved in people smuggling, this
will deter people smuggling. The Government is maintaining a strong Budget also provides funding for the
surveillance presence in Australia’s prosecution of people smugglers.
northern waters by:
Oversight functions
$134 million Biosecurity and
Law enforcement
pandemic
$1.1 billion
$434 million
Transport security
$101 million
Critical infrastructure
protection
$74 million
Cyber security
$349 million Border security *
Other $1.1 billion
$54 million
38 OVERVIEW
Improving defence
capability and promoting
stability
The 2011‑12 Budget invests in new defence capabilities and supports Australia’s
continued international contribution to global and regional security.
Capability building to support International security efforts Deployment Fund with funding of
future force structure The 2011‑12 Budget is providing $32 million to support the quick
The Government is continuing to $1.5 billion to support our troops in deployment of civilian specialists as
upgrade Australian Defence Force their stabilisation and capacity building part of Australian responses to post
(ADF) capabilities to ensure Australia efforts overseas. This includes: conflict and post disaster efforts.
remains well‑equipped to meet our • contributing to international efforts Ongoing Defence reform
military commitments. This includes: to deny terrorists a safe haven and As part of ongoing reforms, $1.2 billion
• investing $177 million in a Bay training ground in Afghanistan. in new Defence efficiencies have been
Class amphibious ship, Largs Bay, • supporting regional security found. These savings will add to those
to significantly enhance the ADF’s through our operations in East already identified under the existing
capacity to provide operational and Timor and the Solomon Islands. Defence Strategic Reform Program.
humanitarian support in our region.
The Government is also continuing to The Defence capital budget will also be
• acquiring a new C‑17 Globemaster commit Australian Federal Police in reprogrammed to match funding with
aircraft at a cost of $252 million capacity building roles as part of the the development of capability projects.
to strengthen Australia’s military United Nations Mission in Sudan. These decisions will not adversely
long‑range heavy airlift capability, affect the future force structure set out
including to support Australian This Budget is also establishing in the 2009 Defence White Paper.
forces in Afghanistan. an Australian Civilian Corps Rapid
$million $million
40,000 40,000
30,000 30,000
20,000 20,000
10,000 10,000
0 0
2001-02 2003-04 2005-06 2007-08 2009-10 2011-12 2013-14
OVERVIEW 39
Appendix A
40 OVERVIEW
Appendix B
The table shows the net savings achieved since the Mid‑Year Economic and Fiscal Outlook 2010‑11. The net effect of policy
decisions takes into account amounts that have previously been provided for in the Contingency Reserve (and as a result have
no net impact on the budget position) and which principally relate to Official Development Assistance.
The savings in the Budget more than cover the $4.4 billion in variations in payments related to the natural disasters, primarily
from payments under the Natural Disaster Relief and Recovery Arrangements (NDRRA).
Estimates Projections
2010-11 2011-12 2012-13 2013-14 2014-15 Total
$m $m $m $m $m $m
Effect of policy decisions since MYEFO
Spends -2,368 -6,292 -3,050 -3,998 -3,248 -18,956
Saves 460 3,733 5,000 5,343 7,145 21,681
Total effect of policy decisions
since MYEFO -1,908 -2,559 1,950 1,345 3,897 2,725
Add Savings from not proceeding with
the Cleaner Car Rebate(b)(c) 0 157 119 85 69 430
Add Contingency reserve
offsets to policy decisions 66 142 288 601 937 2,033
Net budget impact of policy decisions -1,841 -2,260 2,357 2,031 4,903 5,189
OVERVIEW 41
Appendix C
Projected improvement in the real disposable incomes and the net tax thresholds of different household types from
2007-08 to 2011-12
Family type and wage Real disposable income (b) Real net tax threshold (c)
as percentages of AWOTE (a) ($2010-11) ($2010-11)
2007-08 2011-12 % change 2007-08 2011-12 % change
Single person (67%) $35,286 $38,033 7.8% $19,993 $20,625 3.2%
Single person (100%) $49,136 $52,378 6.6% $19,993 $20,625 3.2%
Single person (167%) $75,730 $80,584 6.4% $19,993 $20,625 3.2%
Sole parent (0%) $29,052 $30,427 4.7% $55,252 $57,380 3.9%
Sole parent (67%) $49,483 $52,510 6.1% $55,252 $57,380 3.9%
Single income couple (133%) (d) $65,451 $68,954 5.4% $34,806 $35,822 2.9%
Single income couple (167%) (d) $78,014 $82,868 6.2% $34,806 $35,822 2.9%
Dual income couple (100 & 33%) $68,444 $73,297 7.1% $37,178 $37,625 1.2%
Dual income couple (100 & 67%) $84,422 $90,411 7.1% $37,303 $38,601 3.5%
Single income couple with children (100%) (e) $59,087 $61,898 4.8% $55,252 $57,380 3.9%
Single income couple with children (133%) $71,177 $75,023 5.4% $55,252 $57,380 3.9%
Single income couple with children (167%) $83,150 $84,468 1.6% $55,252 $57,380 3.9%
Dual income couple with children (100 & 33%) (f) $76,706 $82,752 7.9% $65,640 $70,287 7.1%
Dual income couple with children (100 & 67%) (g) $93,401 $98,526 5.5% $69,648 $77,712 11.6%
Dual income couple with children (167 & 100%) (h) $130,430 $140,238 7.5% $68,889 $76,547 11.1%
Single pensioner (0%) (i) $15,706 $18,820 19.8% $29,919 $31,719 6.0%
Pensioner couple (0 & 0%) (i) $25,741 $28,373 10.2% $48,794 $55,022 12.8%
(a) AWOTE is average weekly ordinary time earnings for full-time employees.
(b) Disposable income is the sum of private income and government cash transfers less net tax paid. Tax estimates in 2011-12 include the Temporary Flood and Cyclone
Reconstruction Levy.
(c) The net tax threshold is the private income at which taxes paid exceed cash benefits received.
(d) The spouses of couples without children are aged 40 years old or more. As such their partners may be eligible for Dependant Spouse Tax Offset.
(e) Families with children have two, aged 3 and 8 years. Families spend enough on eligible education expenses to claim the maximum Education Tax Refund in respect of
the 8 year old, where eligible.
(f) For the calculation of real disposable incomes, younger child is in long day care, two days per week at $5.70 per hour in 2007-08 and $7.20 per hour in 2011-12;
older child is not in paid care. For the calculation of net tax thresholds, the hours of care are consistent with the income of the second earner.
(g) For the calculation of real disposable incomes, younger child is in long day care, four days per week at $5.70 per hour in 2007-08 and $7.20 per hour in 2011-12;
older child is not in paid care. For the calculation of net tax thresholds, the hours of care are consistent with the income of the second earner.
(h) For the calculation of real disposable incomes, younger child is in long day care, five days per week at $5.70 per hour in 2007-08 and $7.20 per hour in 2011-12;
older child is not in paid care. For the calculation of net tax thresholds, the hours of care are consistent with the income of the second earner.
(i) For the calculation of net tax thresholds, income is assumed to be from investments which earns a rate of return equal to the current deeming rates.
42 OVERVIEW
Appendix D
Note: the temporary flood and cyclone reconstruction levy is included when calculating total changes in income tax
payable since 2007-08.
OVERVIEW 43
Appendix E
44 OVERVIEW
Appendix F
OVERVIEW 45
Appendix G
Non-tax revenue
$20,714 million Other taxation Other excise Petroleum excise
Customs duty
$2,867 million $9,150 million $17,180 million
$7,520 million
Industry and
workforce Defence
General government $21,277 million Social security
$14,843 million
services and welfare
$96,797 million $121,907 million
Education
$29,870 million
Infrastructure, Community
transport Health services and
and energy $59,858 million culture
$13,221 million $8,044 million
46 OVERVIEW
Appendix H
The table below shows the Government’s macroeconomic forecasts. The Australian
economy is expected to grow by 4 per cent in 2011‑12 and 3¾ per cent in 2012‑13.
More comprehensive information is provided in Budget Paper No. 1, Budget
Strategy and Outlook 2011‑12, Statement 2.
Outcomes(b) Forecasts
2009-10 2010-11 2011-12 2012-13
Panel A - Demand and output(c)
Household consumption 2.1 3 3 1/2 3 1/2
Private investment
Dwellings 2.1 2 1/2 1 1/2 3
Total business investment(d) -4.9 4 1/2 16 14 1/2
Non-dwelling construction(d) -8.2 8 18 1/2 17 1/2
Machinery and equipment(d) -4.8 2 17 1/2 14
Private final demand(d) 0.7 3 6 6
Public final demand(d) 7.0 3 1/2 1 1/4 -1 1/4
Total final demand 2.1 3 4 3/4 4 1/2
Change in inventories(e) 0.3 0 0 0
Gross national expenditure 2.4 3 1/4 4 3/4 4 1/4
Exports of goods and services 5.2 4 6 1/2 5 1/2
Imports of goods and services 4.9 9 10 1/2 8 1/2
Net exports(e) 0.1 -1 -1 - 3/4
Real gross domestic product 2.3 2 1/4 4 3 3/4
Non-farm product 2.3 2 4 3 3/4
Farm product 1.5 13 1 -3
Nominal gross domestic product 2.3 8 6 1/4 5 3/4
Panel B - Other selected economic measures
External accounts
Terms of trade -4.4 19 1/4 - 1/4 -3
Current account balance (per cent of GDP) -4.1 -2 -4 -5 1/4
Labour market
Employment (labour force survey basis)(f) 2.4 2 3/4 1 3/4 1 3/4
Unemployment rate (per cent)(g) 5.2 5 4 3/4 4 1/2
Participation rate (per cent)(g) 65.3 66 66 66
Prices and wages
Consumer price index(h) 3.1 3 1/4 2 3/4 3
Gross non-farm product deflator 0.2 6 2 1/4 2
Wage price index(f) 3.0 4 4 4 1/4
(a) Percentage change on preceding year unless otherwise indicated.
(b) Calculated using original data unless otherwise indicated.
(c) Chain volume measures except for nominal gross domestic product which is in current prices.
(d) Excluding second hand asset sales from the public sector to the private sector.
(e) Percentage point contribution to growth in GDP.
(f) Seasonally adjusted, through-the-year growth rate to the June quarter.
(g) Seasonally adjusted rate in the June quarter.
(h) Through-the-year growth rate to the June quarter.
Note: The forecasts for the domestic economy are based on several technical assumptions. The exchange rate is assumed to remain around its recent average level — a
trade-weighted index of around 78 and a US$ exchange rate of around 107 US cents. Interest rates are assumed to move broadly in line with market expectations. World oil
prices (Malaysian Tapis) are assumed to remain around US$132 per barrel. The farm sector forecasts are based on average seasonal conditions in 2012‑13.
OVERVIEW 47
Appendix I
Underlying
Receipts Payments cash Net financial
balance(a) worth
48 OVERVIEW