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Australian Government Coat of Arms

Budget | 2014-15

Budget 2014-15
Australian Government Coat of Arms, Budget 2014-15

Budget at a glance

This Government is transforming the role of the government in people's lives and will meet its commitment to put Australia's finances back on track and lay the groundwork for future prosperity

Transforming the role of Government

The 2014‑15 Budget marks a major step by the Government to transform the role of government in people's lives. The Government will provide equality of opportunity for all Australians.

This Budget redirects taxpayers' dollars from unaffordable consumption today to productive investment for the future, while maintaining a strong safety net.

A shared contribution

In this Budget we are asking all Australians to contribute to budget repair—businesses, individuals and state and local governments — while continuing to support those who need it most. Australia cannot afford a culture of entitlement when people have the capacity to work. We need all Australians who are able to be earning or learning.

Building Australia's future

The $11.6 billion Infrastructure Growth Package will support the transition to non-resource sector driven growth and catalyse nation-wide infrastructure investment building to over $125 billion by 2019‑20.

Deregulating the higher education sector will ensure it remains world class and we are investing all health savings in this Budget into a $20 billion Medical Research Future Fund.

These important structural reforms will facilitate future growth in living standards.

Tracking to surplus

After inheriting a decade of deficits and debt rising to $667 billion, this Budget puts the Government's finances onto a realistic path to surplus.

Medium-term projections show surpluses building to well over one per cent of GDP by 2024‑25, taking into account future tax relief. Debt is lower by nearly $300 billion in 2023-24.

Budget aggregates and major economic parameters
Actual Estimates Projections
2012‑13 2013‑14 2014‑15 2015‑16 2016‑17 2017‑18
Underlying cash balance ($b)(a) -18.8 -49.9 -29.8 -17.1 -10.6 -2.8
Per cent of GDP -1.2 -3.1 -1.8 -1.0 -0.6 -0.2
Fiscal balance ($b) -23.5 -45.1 -25.9 -12.2 -6.6 1.0
Per cent of GDP -1.5 -2.8 -1.6 -0.7 -0.4 0.1

(a) Excludes net Future Fund earnings

Forecasts Projections
2012‑13 2013‑14 2014‑15 2015‑16 2016‑17 2017‑18
Real GDP 2.6 2 3/4 2 1/2 3 3 1/2 3 1/2
Employment 1.2  3/4 1 1/2 1 1/2 2 1/4 2
Unemployment rate 5.6 6 6 1/4 6 1/4 6 5 3/4
Consumer Price Index 2.4 3 1/4 2 1/4 2 1/2 2 1/2 2 1/2
Nominal GDP 2.5 4 3 4 3/4 5 5

(a) Year average unless otherwise stated. In 2013‑14, 2014-15 and 2015‑16 employment, wages and the consumer price index are through the year growth to the June quarter and the unemployment rate is the rate for the June quarter.
Source: ABS cat. no. 5206.0, 6202.0, 6345.0, 6401.0 and Treasury.