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Australian Government Coat of Arms

Budget | 2014-15

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

Key initiatives of the 2014‑15 Budget

Delivering balanced and credible budget repair

  • The 2014‑15 Budget is part of the Government’s Economic Action Strategy to repair the budget and build a strong and prosperous economy.
  • The substantial savings decisions in this Budget put Australia back on track to a sustainable and responsible budget position, with surpluses projected to build to well over one per cent of GDP by 2024-25, taking into account future tax relief.
  • Debt in 2023‑24 is projected to be nearly $300 billion lower, even when assuming future tax relief, at $389 billion compared with the $667 billion at the 2013‑14 Mid-Year Economic and Fiscal Outlook.
  • All Australians contributing

  • Introducing a Temporary Budget Repair Levy on incomes over $180,000 for the three years from 2014‑15.
  • Requiring young people to be earning, learning or participating in Work for the Dole.
  • Tightening the eligibility for Family Tax Benefit Part B (FTB-B). Low income single parents will be assisted with a new allowance of $750 per annum for each child aged 6 to 12.
  • Indexing pensions to the CPI, rather than wages, from September 2017.
  • Continuing the move by the former Government to increase the age pension age to 67 by 1 July 2023, by further increasing the Age Pension age to 70 by 1 July 2035.
  • Indexation of many payments and programmes will be temporarily paused, including: eligibility thresholds for Family Tax Benefit and Newstart; thresholds for the Medicare Levy Surcharge, Private Health Insurance Rebate and most Medicare Benefits Schedule fees; Official Development Assistance funding; Local Government Financial Assistance Grants; and 112 government grant programmes.
  • Making the States more accountable for spending and delivery of services by reducing the growth in public hospital and education funding and reducing some Commonwealth payments.
  • Establishing a sustainable source of future productivity-enhancing road funding through the reintroduction of indexation of fuel excise from 1 August 2014.
  • Building Australia’s future

  • Creating an $11.6 billion Infrastructure Growth Package, to boost total infrastructure investment by Commonwealth, State and local governments, as well as the private sector, to over $125 billion by 2019-20.
  • Reforms to higher education, including $820 million to expand access to higher education and removing fee caps on Commonwealth-supported places for new students from 1 January 2016.
  • Establishing the biggest medical research fund of its kind in the world, the $20 billion Medical Research Future Fund. Every dollar of savings from health in this Budget will be invested to build this Fund, until the Fund reaches $20 billion.
  • Incentivising businesses to employ Australians over the age of 50 through the new Restart programme.
  • Starting to repair Defence funding, with efficiencies re-invested in Defence capability.
  • Enhancing the protection of our borders by consolidating operational border protection services into the Australian Border Force. The success of Operation Sovereign Borders has resulted in a $2.5 billion saving and will provide further savings as expensive detention centres are closed.