Budget
at a Glance

Fiscal Outlook

The fiscal outlook for Australia remains positive, with a forecast underlying cash surplus of $2.4 billion in 2004-05.
Across the forward estimates, the Government will maintain the budget in surplus, after providing $36.7 billion in new assistance to families, tax cuts and increased incentives to boost retirement savings.

The outlook for the Australian economy is for continued growth, with low unemployment and low inflation.
GDP growth is forecast to moderate slightly from 3¾ per cent in 2003-04 to 3½ per cent in 2004-05.

This Budget includes the largest package of assistance for families ever, with an additional $19.2 billion over five years.
More generous Family Tax Benefit arrangements will significantly help families with the costs of raising children and improve the rewards from working.
A new Maternity Payment and the expansion of outside-school-hours child care and family day care places will assist families balancing work and family commitments. The changes to Family Tax Benefit will help women re-enter the workforce after having children.

Reductions in personal tax worth $14.7 billion over four years will improve work rewards from work and more than 80 per cent of taxpayers will face a marginal tax rate of 30 per cent or less.

$2.7 billion to enhance the superannuation co-contribution scheme and reduce the superannuation surcharge, boost incentives to save for their retirement.
More than three quarters of the benefits will go to low and middle income earners.

$461 million over five years to provide support to carers
$2.2 billion over five years to increase the number of aged care places, improve the quality of care and help providers build and maintain facilities.

$41 billion spending on health and aged care in 2004-05 which amounts to a doubling of spending by the Government since coming to office.
Investment of $32 billion in schools is further commitment to a skilled, productive and healthy workforce and society.

A substantial investment in Science and Innovation of $5.3 billion to provide more funding for research and commercialising ideas.

$1.1 billion over five years for our road and rail systems, in addition to the $2 billion announced in January 2004.

$755 million to enhance Australia’s intelligence capabilities and strengthen security arrangements.
Defence measures exceeding $1.5 billion over five years, bringing to $39.7 billion the total amount of additional defence spending by the Government since 1996.

A $289 million package (over five years) to provide extra assistance to veterans and their families.
Funding of $158 million over four years will ensure veterans retain access to medical specialists.

$73 million in extra drought assistance will make a total of $1.1 billion to support farmers in regions declared eligible for Exceptional Circumstances.
$236 million to extend the Agriculture – Advancing Australia package.
$338 million tax relief for wine producers.
$444 million over five years for sugar industry reform.

Funding of $248 million to implement the Government’s Climate Change Strategy.
$70 million over three years to the Murray-Darling Basin Commission for capital works and important salinity mitigation work.

In 2004-05, every State and Territory is expected to receive more revenue than it would have received had the Australian Government not implemented tax reform.