 | |
| Submitted | 13 May 2008 |
|---|---|
| Submitted to | Parliament of Australia |
| Country | Australia |
| Parliament | 42nd |
| Party | Australian Labor Party |
| Treasurer | Wayne Swan |
| Total revenue | A$312.961 billion |
| Total expenditures | A$287.764 billion |
| Tax cuts | A$46.7 billion (over 4 years) |
| Surplus | A$21.703 billion |
| Website | https://web.archive.org/web/20080722023208/http://www.budget.gov.au/2008-09/content/overview/download/Budget_Overview.pdf
|
| ‡Numbers in italics are projections. ‹ 2007–08 | |
The2008 Australian federal budget for theAustralian financial year ended 30 June 2009 was presented on 13 May 2008 by theTreasurer of Australia,Wayne Swan, the firstfederal budget presented by Swan, and the first budget of thefirst Rudd government.
It had a particular emphasis on familywelfare (expansive tax cuts and a lift in the threshold of theMedicare levy surcharge) and capital investment (national accreditation) funds. Swan described it as "aA$55 billion Working Families Support Package" that "strengthens Australia's economic foundations, and delivers for working families under pressure" from increasingly highinterest rates.[1][2]
Total spending was cut, following on from gradual cuts of nearly 2% of GDP over the decade of the Howard government. Changes to taxation prompted then Shadow TreasurerMalcolm Turnbull to claim the increased taxation will contribute to inflation, but Swan argued[3] that the tax will affect only high income-earners, dispelling any "custodian" line of attack.[4] Heavy spending by the states had been inefficient at managing past underinvestment on infrastructure, and "the conduct of expansionary monetary policies will be less complicated" as a result of the new reform agenda to avoid (supply-side) case-mix funding of the health care and vocational training sectors of the economy.[5]
A new $3 billion tax increase onalcopop drinks[6] was designed to slow down a projected increase (from the Federal Health Minister,Nicola Roxon, tablingTreasury advice) in alcopop sales by 43 million bottles, curtailingbinge drinking. However, the opposition described the increase as merely arevenue raiser, with ShadowHealth MinisterJoe Hockey arguing that consumers of alcopop will switch to other drinks, such aschampagne, and binge drinking will not decrease. In response, thePrime Minister told Federal Parliament that the tax increase had wide support in medical and alcohol support services.[7] Opposition LeaderBrendan Nelson counter-offered with a $1.8 billionpetroltax cut, reversing years of policy opposing loweringpetrol taxes. The Opposition pledged to block the alcopop tax in theSenate, which it will control until July 2008, and has also pledged to block a move to remove a surcharge tax trap for people who fail to take out health cover, which, it claims, will drive upinsurance premiums and steer people away from private healthcare.[6]
An increase to the luxury car tax was defeated in the Senate, withSteve Fielding ofFamily First joining the coalition in blocking the budget legislation. It had been supported by the government, theAustralian Greens, and independentNick Xenophon.[8] It was later passed by all non-coalition Senators after amendments were made.[9]
TheWorld Wildlife Fund of Australia has criticised the ambiguity of the Budget's timeline for developingcoal pollution mitigation technology, while theAustralian Conservation Foundation has urged the government to reconsider taxes that promote the creation of pollution. However, multinationalreal estate companyJones Lang LaSalle lauded the $90 million Green Building Fund, which subsidies half the cost of fitting office blocks with environmentally friendly design features.[10]
Senior citizens representative group Seniors Australia criticised the budget for not increasing the seniors pension, and Carers Australia expressed dismay over the lack of change forcarer payments. A day after the Budget's release, the government promised a future inquiry into carer and pensioner payments and asserted that the pensions will increase after a specialised review.[11][full citation needed]
