News

2012 Budget Economic Wrap

Mr Swan was upbeat about the future.
Mr Swan was upbeat about the future.

TREASURER Wayne Swan hailed the arrival of the "the surplus years" during his Budget speech last night.

As expected a return to surplus in 2012-13 ($1.5 billion) was forecast, followed by surpluses of $2 billion, $5.3 billion and $7.5 billion in the ensuing years.

Forecasting a budget is one thing, but it could be 15 months before we know whether it will be achieved.

The outlook for the current year's balance sheet was not as bright, with a $44 billion deficit predicted.

But Mr Swan was upbeat about the future.

"The deficit years of the global recession are behind us. The surplus years are here," Mr Swan said.

"Surpluses built on some difficult savings which avoid vulnerable Australians and frontline services and don't compromise our investments in productivity."

The introduction of the mining tax will certainly aid in delivering a surplus.

Forward estimates predict the mining tax will generate $3 billion in net tax receipts this coming fiscal year; $3.5 billion in 2013-14; $3.2 billion in 2014-15, and; $3.7 billion in 2015-16.

When combined with the existing petroleum resource rent tax, receipts from the two taxes should increase by a whopping 87.3%.

The controversial carbon price is forecast to bring in $7.69 billion in the 2012-13 financial year.

Unemployment is forecast to remain low for the next two fiscal years at 5.5%, while GDP growth is tipped to hit 3.25% and 3% respectively.

Inflation is expected to reach 3.25% in 2012-13, marginally outside the Reserve Bank's target zone, but is forecast to return to 2.5% the following year.

Key Points of the 2012 Federal Budget

  • GDP growth of 3.25% in 2012-13
  • Unemployment 5.5% over next two financial years
  • $33.6b in savings over forward estimates
  • $44.7b in personal income tax cuts
  • $3.6b Spreading the Benefits of the Boom package
  • $714m loss carry-back scheme for businesses
  • From July 1 small businesses can write off every eligible asset then buy for less $6500 and up to $5000 for vehicles
  • $1b to implement stage one of National Disability Insurance Scheme
  • $515m to address immediate dental care needs
  • $50m for expansion of National Bowel Cancer Screening Program
  • $234m for national eHealth agenda
  • $3.6b to duplicate the Pacific Highway
  • $54m to encourage maths and science studies at schools and universities
  • $1.5b over five years for Remote Jobs and Community program
  • An additional $225m for Jobs, Education and Training Child Care Assistance program

Topics:  federal budget 2012


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Business owner, 71, hunts down graffiti artists

Graffiti damage at Barry Mills' business.

They saw three men spray tags on the Ipswich property

STABBING: Man rushed to hospital with chest wound

Police at the scene of an apparent stabbing at Redbank Plains this afternoon

Police investigate apparent domestic incident

Woman's $27k property crime spree

Ipswich Police Station and Courthouse. Photo: David Nielsen / The Queensland Times

She targeted homes she knew had valuable items inside

Local Partners

EXCLUSIVE: Meet Robert Irwin, wildlife photographer

SNAPPER: Apart from wildlife, photography is Robert Irwin's great passion.

Steve's boy has a passion for photography

Louis Tomlinson's tribute to late mother

Louis Tomlinson's new single is a tribute to his late mother.

Justin Timberlake stuns students with secret class

Justin Timberlake stunned high school students in Sydney

Carrie Fisher says Ford will be bugged by affair confession

Carrie Fisher is sure Harrison Ford is annoyed at her

Dakota Fanning rekindles romance with childhood sweetheart

Dakota Fanning rekindles romance with ex

Jennifer Lawrence apologises to the people of Hawaii

Jennifer Lawrence sorry for 'offensive' story

Essential to get new Maroochydore CBD fundamentals right

LOOKING AHEAD: The central business district at Maroochydore is planned to be the heart of the Sunshine Coast.

SunCentral reports good progress on 53ha Sunshine Coast city heart

'Crucial' farm land eyed by defence department

Lawson Geddes moving the Brangus cattle to higher ground - which is the land the Defence Department is interested taking for the Shoalwater Bay expansion.

"You can't have one without the other.”

Former Shark Show for sale for $1.3 million

Vic Hislop at the old Shark Show.

TALK about a jaws-dropping real estate opportunity.

There's a whole lot of luxury in this home

The Endeavour Foundation's latest prize home in Mountain Creek.

WHEN it comes to desirable homes, it's hard to go past a prize home.

Ipswich City Properties asset portfolio retains its value

Ipswich City Council Administration Building, South Street, Ipswich. Photo: Claudia Baxter / The Queensland Times

New website launched by Ipswich City Council

Ready to SELL your property?

Post Your Ad Here!