The Hon. Peter Costello, MP, Treasurer of the Commonwealth of AustraliaSenator the Hon. Nicholas Minchin, MP, Minister for Finance and Administration

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Budget 2003-04

Budget Overview

Budget at a Glance

The 2003-04 Budget provides for an underlying cash surplus of $2.2 billion while delivering personal income tax cuts.

Personal Income Tax Reductions

  • Australian taxpayers will share in personal income tax cuts worth $10.7 billion over the next four years.
  • Personal income tax thresholds will be raised and additional assistance for low income earners will be provided through an increase in the low income tax offset from $150 to $235 per year and an increase in the income level from which the offset is reduced.
  • The changes will mean Australian taxpayers can keep a higher proportion of the earnings they receive after tax, providing improved incentives to pursue work, advancement and higher skills.

Strong Defence

  • Increased spending on defence of $2.1 billion over five years from 2002-03.
  • $1.1 billion over five years from 2002-03 to augment logistics and support funding for a range of ships, aircraft and land-based specialist military equipment, and ordnance purchases.
  • $645 million over three years from 2002-03 for Australia's contribution to disarming Iraq and involvement in post-conflict rehabilitation and reconstruction activities.
  • $157 million over the next four years for a Special Operations Command to enhance Australia's capacity to respond to threats to national security.

Past Budget Documents

Live Webcast of the 2003-04 Budget Speech

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