Budget at a glance

The 2007-08 Budget will address productivity and participation imperatives to sustain Australia's long-term prosperity. The budget includes personal income tax relief to improve work incentives, substantial additional investment in Australia's education sector, including a new Higher Education Endowment Fund, along with increases in child care assistance. Australia's productive capacity will also increase through additional funding for transport and water infrastructure.

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Personal income tax relief

This budget includes personal tax relief worth $31.5 billion over four years to reward effort, improve work incentives (particularly for lower income earners) and enhance Australia's international competitiveness.

Supporting retirement savings

The Government will boost superannuation savings by putting an extra $1.1 billion into the superannuation accounts of lower income earners through a doubling of the co contribution paid for eligible contributions made in 2005-06.

Realising Our Potential

This budget includes a comprehensive investment in Australia's education sector which will:

  • provide a perpetual source of funding for universities for capital works and research facilities through a new $5 billion Higher Education Endowment Fund
  • assist universities to specialise and better respond to student demand
  • provide additional support for VET
  • focus on improving the quality of teaching in our schools and student learning outcomes.

Child care assistance

From 1 July 2007, the Government is increasing the rates of Child Care Benefit by 10 per cent and ensuring more timely assistance by providing the Child Care Tax Rebate as a direct payment shortly after the end of the financial year. This will assist more than 700,000 families.

Transport and water infrastructure

Funding of $22.3 billion will be provided over the five years from 2009-10 for Australia's road and rail infrastructure. The Government will also invest $10 billion over 10 years to conserve and sustain Australia's water supply.

Budget aggregates

Graph: Budget aggregates

Major economic parameters(a)

Graph: Major economic parameters

1 2007‑08 Budget Overview