Budget at a glance
This is a responsible Budget that delivers for working families and invests in Australia's future. It funds a substantial $55 billion Working Families Support Package; meets the Government's commitments; and begins a new era of responsible long term investment to strengthen our economy, fight inflation, and meet our future challenges from a position of strength.
Delivering for working families
Working families are under pressure from rising costs of living. The Government is helping them make ends meet by:
- cutting personal income tax
- reducing child care and education costs by lifting the Child Care Tax Rebate and introducing a new Education Tax Refund
- improving housing affordability, through the First Home Saver Account, the National Rental Affordability Scheme and the Housing Affordability Fund
- improving access to high‑quality health care, education and training.
Meeting our commitments for Australia's future
The Government is laying the foundations for Australia's future.
By reprioritising spending, the Government is investing in priority areas of education, health and the environment, to build prosperity in the future. The Government will put in place the transport, communications, education and hospital infrastructure necessary for future growth.
The 2007‑08 and 2008‑09 surpluses will be used to invest $40 billion in three nation‑building funds — a Building Australia Fund, an Education Investment Fund and a Health and Hospitals Fund.
The Government is taking action now to deal with the nation's long term challenges.
A new era of responsible economic management
The Government is fighting inflation because it hurts the economy and it hurts working families. That's why the Government will deliver a strong surplus of 1.8 per cent of GDP, with every dollar of new spending in 2008‑09 more than matched by spending cuts. Growth in real spending will be 1.1 per cent in 2008‑09, the lowest rate for nine years.
Over four years, this Budget makes savings of $33.3 billion, including $7.3 billion in 2008‑09.
Budget aggregates(a)
- (a) The 2006‑07 figures have been adjusted to reflect the recognition of GST as an Australian Government tax.
- (b) Excludes expected Future Fund earnings.
Major economic parameters(a)
- (a) All parameters except the CPI are year average percentage changes. The CPI parameter is through the year growth to the June quarter. As in previous budgets, projections assume a two‑year step down in non-rural commodity prices.