- Budget Overview
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.