Australian Government, 2010-11 Budget
Budget
 
Budget at a glance
 

This responsible Budget further strengthens the economy and secures future growth

Setting the highest standards for responsible fiscal management

  • Strict adherence to the fiscal strategy sees the budget return to surplus in 2012‑13, three years ahead of schedule
  • All new spending is offset, and real payments growth has been held to below two per cent
  • The forecast Budget deficit of $40.8 billion in 2010‑11 is $16.3 billion less than expected one year ago
  • Net debt is projected to peak at just 6.1 per cent of GDP; half of the level projected a year ago and less than one tenth of the average across the major advanced economies

Returning to surplus and paying off debt even sooner

  • Return to surplus in three years, three years earlier than expected and ahead of all the major advanced economies
  • The Government will continue building surpluses and achieving a rapid reduction in net debt
  • The Government will maintain the 2 per cent cap on real spending growth, on average, until the surplus reaches 1 per cent of GDP

Tackling key policy challenges and consolidating the position of strength that Australia enjoys

  • The Budget ensures that fiscal policy settings remain appropriate, given the strength of the economic recovery
  • It takes steps to deal with a return to full capacity by growing the whole economy and harnessing the potential of the resources boom
  • It builds on the investments in skills and infrastructure that are necessary to secure our future prosperity
  • It begins the task of modernising the tax system, boosts national savings, makes new investments in renewable energy; and funds historic reforms to the health system

Continuing to ease the burden for working families

  • The Budget builds on the Government's progress in helping working families make ends meet, delivering the third tranche of income tax cuts
  • Tax reforms that grow the economy and real wages over time, putting more in the pocket of working families
  • Fairer and simpler tax returns that increase after‑tax income for 6.4 million Australians

KEY INITIATIVES OF THE 2010‑11 BUDGET

Easing cost of living and making tax time simpler

  • Delivering tax relief, including raising the effective tax‑free threshold to $16,000 from 2010‑11
  • Lower tax on savings — 50 per cent discount on up to $1,000 of interest income
  • Standard deduction to simplify the tax system and leave more in the pocket for 6.4 million Australians

Skills for sustainable growth and building infrastructure

  • $661 million for the Skills for Sustainable Growth strategy
  • $5.6 billion for a new infrastructure fund and $1 billion to renew rail networks

Renewables and energy efficiency

  • $652 million Renewable Energy Future Fund

Growing the whole economy

  • Resource Super Profits Tax from 1 July 2012
  • Company tax rate cut to 29 per cent from 2013‑14 and 28 per cent from 2014‑15
  • Company tax rate cut to 28 per cent for small business companies from 2012‑13
  • Instant asset write off for assets under $5,000 for all small businesses from 1 July 2012

Stronger, Fairer Super

  • Increasing the super guarantee to 12 per cent, assisting 8.4 million Australians
  • From 1 July 2012, contributing up to $500 to offset contributions tax for those on incomes up to $37,000
  • From 1 July 2012, allow catch‑up contributions by older workers with super balances less than $500,000

National Health and Hospitals Network

  • Total new investment of $7.3 billion over five years, and $23 billion over the rest of the decade
  • Additional $2.2 billion to meet the needs of our modern health system:
    • $355 million for GP Super Clinics
    • $417 million to enhance after hours services
    • $523 million to train our nurses
    • $467 million to introduce individual electronic health records

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