Federal Budget 2011: $3.5 billion budget surplus expected in 2012/13

(All prices are in Australian dollars.)

All highlighted words can be defined in the glossary at the bottom of the article.

The Australian Government has taken the tough decisions necessary to ensure the budget returns to surplus in 2012/13, while delivering on major spending priorities. The Australian Government is achieving this by making $22 billion in savings and limiting real growth in spending to certain areas.

Breakdown of each sector:

Economy:

• Budget deficit estimated at $22.6 billion in 2011/12.
• Total savings of $21.7 billion over four years.
• Return to surplus of $3.5 billion by 2012/13.
• Unemployment predicted to fall to 4.75 per cent in 2011/12.
• Inflation predicted to fall to 2.75 per cent in 2011/12.

Skills and Work:

• $558 million National Workforce Development Fund.
• Ann additional 130,000 new training facilities to be created.
• 16,000 skilled immigrants to fill labour shortages in key regions.
• Accelerate apprenticeships and $101 million national mentoring program for apprentices.
• Up to $1.75 billion for reforms of vocational education and training system. 

Participation:

• Cut effective tax rates for 50,000 single parents.
• Phase out Dependent Spouse Tax Offset beginning with partners under 40.
• Extend Earn or Learn requirements to 21-year-olds.
• $233 million in new support programs and 35,000 targeted wage subsidies.
• Slow growth of Disability Support Pension numbers by introducing new work tests and more wage subsidies.

Health Care:

• $1.8 billion investment in hospitals and health care for regional Australia.
• $717 million over five years for diagnostic imaging services and affordability of medicines and immunisations.
• $53 million to improve access to public dental services.
• $1.5 billion for new mental health initiatives.
• $419 million in early mental health intervention services.

Schools/Education:

• $425 million to reward top performing teachers over the next four years.
• $18.1 million to provide new pathways into teaching careers for professionals.
• $222 million to extend and expand National School Chaplaincy program.
• $200 million to support disabled school students.

Families:

• $771.9 million for an increase of the annual rate for the Family Tax Benefit Part A for dependant families.
• More flexibility for Child Care Rebate payments.
• Extending Education Tax Refund to cover school uniforms.
• Delayed implementation of Paid Paternity Leave for six months.
• Limited eligibility for Family Tax Benefit Part A.
• $12.1 million over five years for health checks for children starting school.

Regions:

• $4.3 billion for regional hospitals, health care, universities and roads.
• $232 million in new strategic investments.
• 16,000 skilled immigrants to fill labour shortages in regions.
• Drought assistance for primary producers and small businesses.

Major Savings:

• $2 billion from better targeting of family payments.
• $1.1 billion from increasing public sector efficiency dividend.
• $755 million from phasing out Dependent Spouse Tax Offset.
• $470 million from removing access to Low Income Tax Offset or unearned income of minors.

Glossary:

• Surplus: To have a certain amount remaining after the original requirement has been met. To have extra.
• Deficit: The amount by which a sum of money falls short of the required amount.
• Fund: A sum of money saved or invested for a particular purpose.
• Reforms: Improvements by removing faults.
• Vocational: Designed to provide the necessary skills for a specific job or career.
• Spouse: Somebody’s husband or wife.
• Offset: Something that counterbalances or compensates. An allowance made in order to counterbalance something.
• Subsidies: Money given by the government.
• Pension: A certain amount of money given to somebody during retirement by the government.
• Diagnostic: Used in identifying illnesses or problems.
• Intervention: A deliberate entry into a situation or dispute in order to influence the events taking place.
• Rebate: Money that is payed back.
• Implementation: To put something into effect or action.
• Sector: A component of an integrated system such as an economy or a society.
• Dividend: A certain amount paid.