2002-03 BUDGET PAPER No. 2
BUDGET MEASURES
2002-03
CIRCULATED BY
THE HONOURABLE PETER COSTELLO, M.P.,
TREASURER OF THE COMMONWEALTH OF AUSTRALIA, AND
SENATOR THE HONOURABLE NICK MINCHIN,
MINISTER FOR FINANCE AND ADMINISTRATION,
FOR THE INFORMATION OF HONOURABLE MEMBERS
ON THE OCCASION OF THE BUDGET 2002-03
14 MAY 2002
© Commonwealth of Australia 2002
ISBN 0642 74106 9
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Foreword
Budget Paper No. 2 - Budget Measures 2002-03 ensures that the Budget Papers provide comprehensive information on all Government decisions announced in the Budget that involve changes to its revenue, expense and investing activities.
Budget Paper No. 2 comprises three parts:
- Part I: Revenue Measures
- Part II: Expense Measures
- Part III: Capital Measures
Revenue measures are defined as those measures that affect taxation or non-taxation revenues (on a Government Finance Statistics (GFS) basis).
Expense measures are defined as those measures that affect expenses (on a GFS basis).
Capital measures are defined as those measures that affect net capital investment, defined as the change in non-financial assets. Capital measures that fall outside of this definition, such as equity injections or loans used for purposes other than investment in non-financial assets, are shown as having a zero impact on the fiscal balance.
A summary of all measures introduced since the 2001-02 Budget is included in each part. Measures introduced since the 2001-02 Mid-Year Economic and Fiscal Outlook (MYEFO), including measures in this Budget, are described in detail. Detailed descriptions of measures up to the time of the MYEFO are contained in that document.
Notes
(a) The following definitions are used in this Budget Paper:
- `real' means adjusted for the effect of inflation;
- real growth in expenses is measured by the non-farm Gross Domestic Product deflator;
- Budget year refers to 2002-03, while the forward years refer to 2003-04, 2004-05 and 2005-06; and
- one billion is equal to one thousand million.
(b) Figures in tables and generally in the text have been rounded. Discrepancies in tables between totals and sums of components are due to rounding:
- estimates under $100,000 are rounded to the nearest thousand;
- estimates $100,000 and over are generally rounded to the nearest tenth of a million;
- estimates midway between rounding points are rounded up; and
- the percentage changes in statistical tables are calculated using unrounded data.
(c) For the budget balance, a negative sign indicates a deficit while no sign indicates a surplus.
(d) The following notations are used:
* The nature of this measure is such that a reliable estimate cannot be provided.
NEC/nec not elsewhere classified
AEST Australian Eastern Standard Time
- nil
.. not zero, but rounded to zero
na not applicable (unless otherwise specified)
nfp not for publication
$m $ million
(e) References to the `States' or `each State' include the Territories, because from 1993-94 onwards, general purpose funding has been on the same basis for all jurisdictions. The Australian Capital Territory and the Northern Territory are referred to as `the Territories'. The following abbreviations are used for the names of the States, where appropriate:
NSW New South Wales
VIC/Vic Victoria
QLD/Qld Queensland
WA Western Australia
SA South Australia
TAS/Tas Tasmania
ACT Australian Capital Territory
NT Northern Territory
Budget Measures 2002-03 is one of a series of Budget Papers, the purpose of which is to provide information supplementary to that in the Budget Speech. A full list of the series is printed on the inside cover of this paper.
Contents
Part I: Revenue measures
Communications, Information Technology and the Arts
Education, Science and Training
Foreign Affairs and Trade
Immigration and Multicultural and Indigenous Affairs
Transport and Regional Services
Treasury
Part II: Expense measures
Agriculture, Fisheries and Forestry
Attorney-General's
Communications, Information Technology and the Arts
Defence
Education, Science and Training
Employment and Workplace Relations
Environment and Heritage
Family and Community Services
Finance and Administration
Foreign Affairs and Trade
Health and Ageing
Immigration and Multicultural and Indigenous Affairs
Industry, Tourism and Resources
Prime Minister and Cabinet
Transport and Regional Services
Treasury
Veterans' Affairs
Part III: Capital measures
Attorney-General's
Communications, Information Technology and the Arts
Defence
Education, Science and Training
Employment and Workplace Relations
Finance and Administration
Immigration and Multicultural and Indigenous Affairs
Transport and Regional Services
Treasury
Cross Portfolio
Table of Measures by Portfolio
Part 1: Revenue measures
Communications, Information Technology and the Arts
Changes to the Regional Equalisation Plan rebates
Education, Science and Training
Extension of the Postgraduate Education Loans Scheme
Foreign Affairs and Trade
Increase in the price of the Australian passport
New senior Australian passport
Immigration and Multicultural and Indigenous Affairs
Align the onshore and offshore Visa Application Charge for skilled points tested migration
Align the Resident Return Visa application charge with the Australian citizenship application fee
Increase in the permanent migrant intake
Second instalment Visa Application Charge for the Adult Australian Migrant English Programme for onshore applicants for permanent residence
Transport and Regional Services
Aviation war risk insurance - indemnities for Australian carriers, airports and service providers
Treasury
Income tax
12 month extension of the grouping rules
A Better Superannuation System - allow temporary residents to access their superannuation after they have departed Australia
A Better Superannuation System - continuing superannuation contributions to age 75
A Better Superannuation System - higher fully deductible amount for superannuation contributions by self-employed persons
A Better Superannuation System - quarterly Superannuation Guarantee contributions
A Better Superannuation System - reducing the Superannuation Surcharge rate
A Better Superannuation System - reduction of the tax rate on excessive Eligible Termination Payments
A Better Superannuation System - replacement of the rebate for personal superannuation contributions
A Better Superannuation System - splitting of superannuation contributions between couples
A Better Superannuation System - superannuation for life: child accounts
A Better Superannuation System - superannuation from the Baby Bonus
Amendment to the inter-corporate dividend rebate for unfranked dividends
ATO pricing review - additional revenue from enhanced ATO resources
Deductibility of certain gifts
Ensuring companies are able to access the same business test
Exemption from income tax for the language, literacy and numeracy supplement
Extended eligibility for the Senior Australians' Tax Offset
Implementing the next phase of business tax reform
Increase in Medicare levy thresholds
Increase in the medical expenses offset threshold
Maintaining the benefit of the franked dividend rebate
Remove taxation of financial instruments at point of conversion or exchange
Statutory effective life caps for certain classes of assets
Taxation of life insurance policyholders
Taxation relief for demergers
Indirect tax
Diesel/water emulsion relief from excise
Excise free treatment for non-recyclable oils and lubricants
Imposition of excise on higher of labelled or actual alcoholic strength
National Excise Scheme for Low Alcohol Beer
Non-tax revenue
Additional reimbursements from the States and Territories
Australian Securities and Investments Commission increased fees
Authorised deposit-taking institutions and insurance cost recovery
Part II: Expense measures
Agriculture, Fisheries and Forestry
A Stronger Tasmania
Beef Expo 2003 and Gracemere Saleyards
Boosting rural veterinary services
Enhancing animal health infrastructure
Exceptional Circumstances in the northern wheatbelt region in WA
Incentives for Environmental Management Systems in agriculture
Northern Australia Quarantine Strategy
Northern Mallee Pipeline - Stage 7 South
Reprioritisation of funding for the Southern Bluefin Tuna Scientific Research Programme
Reprioritising funding for the National Food Industry Strategy
Southern Bluefin Tuna Scientific Research Programme
Attorney-General's
Australian Law Online
Continue to support community legal services
Expanding the capacity of Crime Stoppers
Increased funding for HIH Royal Commission
Keeping people out of the courts
Expand the research and development capability of the Australian Federal Police
Extension of the National Heroin Signature Programme (NHSP) to cocaine and amphetamines
Additional funding for the centenary celebrations of the High Court of Australia
Upgrading domestic security
Improved aviation security
Enhanced aviation security
Improved data access for border control agencies
Increased number of explosive detector dogs at Australian airports
Strengthening air safety
Identification of security threats
Enhanced technical capacity
Enhancement of guarding services by the Australian Protective Service
Enhancement of national security coordination and counter-terrorism capabilities
E-security national agenda
Additional container x-ray machines
Additional pallet x-ray machines
Enhanced Coastwatch communications capability
High frequency surface wave radar
Enhanced analytical and predictive crime capability for the Australian Bureau of Criminal Intelligence
Enhancement of protective security services
Expansion of the Law Enforcement Cooperation Programme
Extension of Project Axiom
Increased funding to intelligence agencies
Defence Communications Project
Research and development of a biometric identifier for the Australian passport
Increased capacity to respond to security incidents
Incident response capability
Australian Federal Police rapid response capability
Double the strike team capacity of the Australian Federal Police
Commonwealth Heads of Government Meeting (CHOGM) in Queensland
Counter-terrorism: improving operational capacity
Enhanced protective security
Enhancement to Defence's tactical response capability
Communications, Information Technology and the Arts
A national media-based youth arts festival
Continuation of funding for the Major Festivals Initiative
Continuation of funding for the Young and Emerging Artists Initiative
Enhanced facilities at the Australian Institute of Sport
Additional funding for the National Institute of Dramatic Art
Australia Business Arts Foundation
Better targeting of the telecommunications needs of indigenous communities
Commercial Radio Black Spots Programme
Continuation of funding for heritage collections
Continuation of funding for the Australian Museums Online Programme
Continuation of funding for the Contemporary Music Touring Programme
Continuation of funding for the National Institute of Circus Arts
Maintaining community broadcasting infrastructure and multicultural funding
Reprioritisation of funding from the Online Technical Assistance Programme
Telecommunications Action Plan for remote indigenous communities
Television Black Spots - alternative technical solutions
Reprioritisation of funding from the National Archives of Australia
Additional funding for the National Museum of Australia
Extension of SBS Television to population areas with 5,000 to 10,000 people
Defence
Additional funding for increased coastal surveillance
Additional funding for the War Against Terrorism
Commonwealth Heads of Government Meeting (CHOGM) in Queensland
Counter-terrorism: improving operational capacity
Defence Communications Project
Enhanced protective security
Enhancement to Defence's tactical response capability
E-security national agenda
Incident response capability
Increased funding to intelligence agencies
Increased munitions war - stocks
Reprioritisation of Defence administrative spending to operational requirements
Rescheduling of major capital equipment acquisitions
Education, Science and Training
Actuarial assessment of unfunded higher education superannuation
Australia's radioactive waste management strategy
Expanding School Based New Apprenticeships
Extension of the English as a Second Language - New Arrivals Programme
Improving information technology skills for older workers
Innovation New Apprenticeship Incentive
Maintaining funding to the Anglo-Australian Telescope Board
Quality Teacher Programme
Rationalisation of funding for State and Territory Industry Training Advisory Bodies
Reprioritisation of portfolio resourcing
Review of Australia's veterinary profession to address the shortage of rural based large livestock veterinarians
The General Sir John Monash Awards
University of Tasmania - Graduate Diploma in Environment and Planning
Employment and Workplace Relations
Funding to support the appointment of additional Members to the Australian Industrial Relations Commission
Arrangements for the Third Employment Services Contract
Environment and Heritage
Expansion of the market for Biofuels
Rationalisation of Australian Greenhouse Office Programmes
Development of sewerage schemes for Boat Harbour and Sisters Beach, Tasmania
National Oceans Policy
Additional funding for the Sydney Harbour Federation Trust
Family and Community Services
Additional funding for changes to social security arrangements with New Zealand
Better monitoring of preparing for Work Activity Agreements
Changes to the indexation provisions for Commonwealth support of the child care sector
Compliance Package - assurance, research and development
Compliance Package - prevention and detection
Ex-gratia payments to volunteer firefighters for lost income - New South Wales bushfires 2001-02
Extension of funding to support family relationships
Extension of the Family and Community Networks Initiative
Extension of waiver provision for Newstart recipients
Four new international social security agreements
Implementation of certain Australians Working Together measures
National reciprocal transport concessions for State Seniors Card holders
Prime Minister's Community Business Partnership
Recognising and improving the work capacity of people with a disability
Reduced penalties for non-attendance at interviews
Reprioritisation of departmental resources
Restricting activity test exemptions for Newstart Allowance and Youth Allowance recipients
Revised funding for the Stronger Families and Communities Strategy
Third Commonwealth State Territory Disability Agreement
Finance and Administration
Continuation of resourcing for asset sales function
Deferral of the sale of the Commonwealth's shareholding in the Australian Submarine Corporation - sale costs
More efficient administration of the Australian Antarctic Southern Ocean Profiling Project
Foreign Affairs and Trade
Australia's contribution to the Heavily Indebted Poor Countries (HIPC) Initiative
Increase in the Export Market Development Grants minimum grant
Integration and expansion of TradeStart and Export Access Programmes
Health and Ageing
Additional Commonwealth support for the Royal Flying Doctor Service
Additional support for carers of older Australians
Adjustment of the Reciprocal Health Care Agreement with New Zealand
Allowing new aged care residents a 28 day period of grace from income testing
Asthma Management Programme - restoration of funding
Better arthritis care
Better treatment for cancer patients
Capital assistance for aged care in rural and remote Australia
Capital works at the Children's Cancer Research Institute
Community partnerships initiative
Croc Festivals
Delisting of Caverject from the Pharmaceutical Benefits Scheme
Enhanced assessment of concessional residential status
Increased access to Medicare claiming through pharmacies
Increased funding for aged care administration
Increased funding for drug treatment
Increased residential aged care subsidies
Investment in preventive health
Listing of Glivec on the Pharmaceutical Benefits Scheme
Medical Specialist Outreach Assistance Programme - restoration of funding
More aged care nurses
More care services in retirement villages
More community aged care packages
More doctors for outer metropolitan areas
More support for ageing carers of people with disabilities
More support for carers of people with dementia
National Illicit Drug Strategy
Palliative care in the community
Productive Ageing Centre
Reduction in funding for No or Known Gaps information programme to fund capital works at the Children's Cancer Research Institute
Retractable needles and syringes
Review of pricing arrangements for residential aged care subsidies
Staying at home - care and support for older Australians
Support for aged care training
Support for Human Pituitary Hormone recipients
Sustaining the Pharmaceutical Benefits Scheme - facilitating the use of generic medicines
Sustaining the Pharmaceutical Benefits Scheme - improved data analysis and compliance activities
Sustaining the Pharmaceutical Benefits Scheme - increased information provision to doctors by industry
Sustaining the Pharmaceutical Benefits Scheme - realigning patient co-payments and safety nets
Sustaining the Pharmaceutical Benefits Scheme - reductions in pharmacy fraud
Sustaining the Pharmaceutical Benefits Scheme - reinforcing the commitment to evidence based medicine
Sustaining the Pharmaceutical Benefits Scheme - restrictions on doctor shopping
Visudyne Therapy
Withdrawal of funding for `GP House'
Immigration and Multicultural and Indigenous Affairs
Enhanced training of directors of indigenous organisations
Australian Citizenship promotion
Continuation of the Adult Migrant English Programme special initiatives
Continuation of the Living in Harmony initiative
Extension of Safehaven allowance
Extension of Temporary Protection Visa allowance
Increase in the permanent migrant intake
Location of new immigration detention facility in South-East Queensland: offsetting reduction in costs
Maintain funding for the Integrated Humanitarian Settlement Strategy
Response to the Senate Inquiry for Child Migration
Settlement services for migrants and humanitarian entrants
Protecting Australia's borders
Additional funding to address unauthorised arrivals
Construction of a purpose built permanent Immigration Reception And Processing Centre on Christmas Island
Funding package to the Afghan Interim Authority
Long term strategy for immigration detention facilities in Australia
Onshore savings flowing from the offshore processing strategy
Reception and administration of successful asylum seekers
Reception and processing of asylum seekers at offshore locations (Australian external territories)
Reception and processing of asylum seekers at offshore locations (third countries)
Regional Cooperation Agreement
Reintegration assistance for Afghans
Reintegration assistance for non-Afghans
Doubling of Customs' National Marine Unit surveillance and response capacity
Increased Coastwatch surveillance
Provision of five boats to the Indonesian Police
Funding under the Memorandum of Understanding with Nauru to address unauthorised arrivals
Ambassador for People Smuggling Issues
Continuation of Australia's temporary presence in Nauru
Additional funding for increased coastal surveillance
Industry, Tourism and Resources
Further funding for the Australian Tourist Commission
Additional funding for the See Australia Domestic Tourism Initiative
Assistance to Methanex Corporation
Assistance to Mitsubishi Motors Corporation
Assistance to Rio Tinto to commercialise new iron smelting technology
Australian Stockman's Hall of Fame and Outback Heritage Centre
Back of Bourke Exhibition Centre
Cairns Foreshore Promenade Development project
Derby Hydrogen Tidal Study
Development of a National Offshore Safety Authority
Fishing Hall of Fame and World Heritage Fraser Island Interpretive Centre Project
Funding for the Travel Compensation Fund
Increased funding for the Regional Tourism Programme
Increased industry assistance to small and medium enterprises
Invest Australia - investment promotion and attraction
Mentor Resources
Rationalisation of assistance to the printing industry
Rationalisation of assistance to the Textiles, Clothing and Footwear (TCF) industry
Rationalisation of assistance to the tourism industry
Rationalisation of funding for international organisations contributions
Signage for Magnetic Island
Small Business Assistance Programme
Tasmanian regional tourism infrastructure initiatives
Wine Industry Programme
New geoscience funding for securing Australia's oil supply
Prime Minister and Cabinet
Enhanced complaint management by the Ombudsman's office
Transport and Regional Services
Artificial Reef Mackay
Commonwealth contribution to the construction of the Lismore flood levee
Commonwealth contribution to the New South Wales Bushfire Relief Appeal
Construction of the Bert Hinkler Hall of Aviation Museum
East Coast Very High Speed Train scoping study
Enhancement of the Bass Strait Passenger Vehicle Equalisation Scheme
Extension of the Federal Road Safety Black Spot Programme
Feasibility study for the Gold Coast Light Rail Project
Further Commonwealth contribution to the New South Wales bushfires
National Highway and Roads of National Importance
Payment scheme for Airservices Australia's enroute charges
Waterfront asbestos - related injury compensation
Treasury
Additional funding for the Australian Prudential Regulation Authority for costs associated with the HIH Royal Commission
Authorised deposit-taking institutions and insurance cost recovery
Additional funding for the Australian Securities and Investments Commission for costs associated with the HIH Royal Commission
Australian Securities and Investments Commission Output Pricing Review
Implementation of expanded obligations under the Financial Services Reform Act
A Better Superannuation System - allow temporary residents to access their superannuation after they have departed Australia
A Better Superannuation System - Government superannuation co-contribution for low income earners
A Better Superannuation System - Government superannuation co-contributions for low income earners - implementation and administration
A Better Superannuation System - quarterly Superannuation Guarantee contributions
ATO pricing review - enhanced ATO resources
Baby Bonus
Baby Bonus - implementation and administration
Choice of superannuation fund and portability
Extension to the Diesel Fuel Rebate Scheme
Intergovernmental Agreement - enhanced resources for GST administration
Streamlined Company Registration
Establishment of the Office of the Inspector General of Taxation
Extension of the Additional First Home Owners Scheme
Reduction in Budget Balancing Assistance as a result of not indexing petroleum Revenue Replacement Payments forgone
Reduction in Budget Balancing Assistance resulting from the National Excise Scheme for Low Alcohol Beer
Review of competition provisions of the Trade Practices Act
United Medical Protection (UMP)/Australasian Medical Insurance Ltd (AMIL) insolvency adviser
United Medical Protection (UMP)/Australasian Medical Insurance Ltd (AMIL) Guarantee
Veterans' Affairs
Extend the Gold Card to Australian veterans over 70 years of age with post World War II qualifying service
Index the ceiling rate of income support supplement for war widows
Part III: Capital measures
Attorney-General's
Additional container x-ray machines
Additional funding to address unauthorised arrivals
Additional pallet x-ray machines
Doubling of Customs' National Marine Unit surveillance and response capacity
Improved data access for border control agencies
Australian Federal Police rapid response capability
Double the strike team capacity of the Australian Federal Police
Enhanced analytical and predictive crime capability for the Australian Bureau of Criminal Intelligence
Enhancement of protective security services
E-security national agenda
Expansion of the Law Enforcement Cooperation Programme
Extension of Project Axiom
Enhanced technical capacity
Increased funding to intelligence agencies
Communications, Information Technology and the Arts
Enhanced facilities at the Australian Institute of Sport
Reprioritisation of capital expenditure from the National Archives of Australia
Special Broadcasting Service Corporation - refinancing of Artarmon property loan
Defence
Enhanced protective security
Enhancement to Defence's tactical response capability
Funding to cover shortfall in non-property sales
Incident response capability
Location of new immigration detention facility in South-East Queensland
Education, Science and Training
CSIRO Property sales
Extension of the Postgraduate Education Loans Scheme
Employment and Workplace Relations
Arrangements for the Third Employment Services Contract
Finance and Administration
Deferral of the sale of the Commonwealth's shareholding in the Australian Submarine Corporation
Immigration and Multicultural and Indigenous Affairs
Construction of a purpose built permanent immigration reception and processing centre on Christmas Island
Transport and Regional Services
New freight and passenger facilities at Rumah Baru on West Island, Cocos (Keeling) Islands
Treasury
A Better Superannuation System - quarterly Superannuation Guarantee contributions
Baby Bonus - implementation and administration
Cross Portfolio
Reduce the Commonwealth Property Principles rate to 11.0 per cent
