(Repeats with no change to text) Following are the highlights of Australia's 2021/22 budget and the Treasury's key economic forecasts released on Tuesday. For a story on the budget, click FORECASTS SURPLUS/DEFICIT
New (Pct of GDP)
Previous (Pct of GDP) (In A$ bln)
f'cast
f'cast 2021/22
-106.6 (-5.0)
-108.5 (-5.3) 2022/23
-99.3 (-4.6)
-66.0 (-3.0) 2023/24
-79.5 (-3.5)
2024/25
-57.0 (-2.4) GDP GROWTH 2021/22
2022/23
2023/24
2024/25 (In pct)
New Old
New Old
New Old
New Old
4.25 3.50
2.50 2.50
2.25 2.75 2.50 - UNEMPLOYMENT 2021/22
2022/23
2023/24
2024/25 (In pct)
New Old
New Old
New Old New Old
5.0 5.5
4.75 5.25 4.5 5.25 4.5
- CPI INFLATION 2021/22
2022/23
2023/24
2024/25 (In pct)
New Old
New Old
New Old
New Old
1.75 1.50
2.25
2.5 -
2.5 - REVENUE AND EXPENDITURE Total 2021/22 revenues seen at A$496.6 billion, 23.3% of GDP before rising to A$578 billion in 2024/25.
Expenses are seen falling by 12.3% in 2021/22 to A$589.3 billion reflecting the cessation of the government's temporary welfare measures. As a percentage of GDP, total expenses are estimated to reach 32% in 2020/21 and then decline over the forward estimates to 26.4% in 2024/25. DEBT Net debt is expected to rise to 34.2% of GDP at June 2022 and peak at 40.9% of GDP at June 2025, before decreasing to 37% of GDP at June 2032. Gross debt is projected to surpass A$1 trillion at 2022/23 from A$829 billion at 2020/21. INITIATIVES COVID-RELATED
* A further A$1.9 bln allocated for vaccine rollout
* Budget provides A$1.5 billion for COVID-related health services, including testing and tracing, respiratory clinics and telehealth. TAX
* Tax cuts for over 10 million low- and middle-income earners - individuals will receive up to A$1,080 and couples will get A$2,160
HOUSING
* Government to help another 10,000 first-home buyers build a new home with a 5% deposit
* Some 10,000 single parents will be able to purchase a home with a 2% deposit
* Increasing the amount that can be released under the First Home Super Saver Scheme to A$50,000 from A$30,000
* To allow those aged over 60 to contribute up to A$300,000 to their superannuation fund if they downsize their home, freeing up more housing stock for younger families. BUSINESS
* Budget provides a further A$2.1 billion in targeted support for aviation, tourism, arts and international education providers
* Tax relief for around 1,000 small brewers and distillers
* Doubled its commitment to the "JobTrainer" fund to help create new apprenticeships and traineeships
* Investing A$1.2 billion to build digital infrastructure, skills and cybersecurity
* Launching a new patent box, under which income earned from new patents developed in Australia will be taxed at a concessional 17% rate. The patent box will apply to the medical and biotech sectors WOMEN WELFARE & SAFETY
* A$1.7 billion investment in childcare to help boost workforce participation and women's economic security
* New A$1.1 billion funding for women's safety which would deliver more emergency accommodation, legal assistance, counseling and financial support.
* To remove A$450 monthly minimum income threshold for superannuation guarantee to help improve economic security for women
INFRASTRUCTURE
* Announces A$15 billion in additional infrastructure commitments including for a new intermodal terminal in Melbourne and a new airport in New South Wales WELFARE
* To spend A$13.2 billion over 4 years for National Disability Insurance Scheme
* To commit A$17.7 billion in new aged care funding
* A A$2.3 billion commitment to mental health care and suicide prevention
* To commit A$2 billion to fund preschools
* To provide more than A$19 billion in funding for universities in 2021/22
NATURAL DISASTERS
* A A$10 billion government guarantee to make insurance more affordable in Northern Australia
* More than A$600 million for community and household projects to mitigate the impact of natural disasters
* A$170 million to boost internet and mobile coverage in regional Australia, particularly in bushfire-prone areas CLIMATE CHANGE
* The Budget provides over A$480 million in new funding for the environment, including A$100 million to protect oceans
* Investing A$1.6 billion to fund priority technologies, including clean hydrogen and energy storage.
NATIONAL SECURITY
* The Budget provides A$1.9 billion over the decade to strengthen national security, law enforcement and intelligence agencies.