Budget
at a Glance

Fiscal Outlook

  • The 2007‑08 Budget provides for an underlying cash surplus of $10.6 billion, the Government's tenth surplus.
  • A strong budget allows continuing investment to improve Australia's long‑term economic growth and prosperity.

Economic Outlook

  • The Australian economy continues to grow in its longest period of expansion ever recorded.
  • Since 1996, there are 2 million more people in jobs, real wages are up by 20 per cent. The unemployment rate is at a 30 year low. Household wealth has more than doubled.

Personal income tax reform

  • All taxpayers will benefit from a further $31.5 billion in tax cuts over the next four years.
  • From 1 July 2007, the low income tax offset will increase to $750 per year and the 30 per cent threshold will rise from $25,000 to $30,000.
  • This will further reward effort and improve work incentives for lower income and part‑time workers.
  • From 1 July 2008, the 40 per cent threshold will increase to $80,000 and the 45 per cent threshold will increase to $180,000.

Realising Our Potential

  • A comprehensive investment in Australia's education sector, covering universities, VET and schools.
  • $5 billion will be invested in a new Higher Education Endowment Fund to provide a perpetual source of funding for university capital works and research facilities. The Government will make further contributions from future surpluses.
  • $768 million for universities to simplify and boost funding and to increase funding and enrolment flexibility.
  • $222 million for increased income support for tertiary students and an extra 3,500 Commonwealth scholarships.
  • More assistance to apprentices and the VET sector.
  • $549 million for 1st & 2nd year apprentices in skill shortage trades for a $500 education voucher to offset fees and, if under 30, a $1,000 tax‑free wage top‑up.
  • $843 million extra to improve the quality of teachers and the education of all Australian school children. $700 tutorial vouchers to help students meet literacy and numeracy standards.

Improving child care assistance

  • From 1 July 2007, rates of Child Care Benefit will increase by 10 per cent on top of indexation.
  • From 1 July 2007, the Child Care Tax Rebate will be available as a direct payment shortly after the end of the year.
  • These measures help more than 700,000 families.

Investment in land transport infrastructure

  • $22.3 billion will be provided over the five years from 2009‑10 for Australia's road and rail infrastructure, including $16.8 billion for the national network.

Increasing retirement savings for low income earners

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

Rewarding older Australians and carers

  • $500 one‑off bonus payment, to ensure older Australians share in the economic growth they helped create.
  • $1,000 bonus payment to recipients of the Carer Payment and recipients of both the Carer Allowance and either the Wife Pension or Veterans' Affairs Partner Service Pension.
  • $600 bonus payment to recipients of the Carer Allowance.
  • These bonuses will be tax‑free and paid by 30 June 2007.

Sustaining our environment

  • $741 million for practical climate change initiatives, including the doubling to $8,000 of rebates for the installation of solar panels by households.
  • $10 billion over 10 years to conserve and sustain Australia's water supply.
  • $2 billion to extend the Natural Heritage Trust.

Supporting rural areas

  • An additional $314 million in Exceptional Circumstances assistance bringing to $1.6 billion assistance since 2002‑03.
  • $342 million for improved rural services.
  • $205 million to help primary producers through extending the Agriculture - Advancing Australia initiative.

Strengthening defence and national security

  • $6.1 billion over 10 years to enhance recruitment and retention of military personnel and logistics.
  • $702 million for national security initiatives to further safeguard against terrorism, including better e‑security.

Better health and aged care

  • $772 million for improved detection and treatment of chronic and complex conditions.
  • $486 million for medical research infrastructure in 2006‑07.
  • $1.6 billion for aged care initiatives.

2007‑08 Budget At A Glance