Budget Offers Something for Everyone

On May 8^th Peter Costello delivered his 12^th Federal Budget, and 10^th in Surplus.

This years budget was definitely one that had something for everyone as we move into full gear for the Federal Election due later this year.

Almost every area received some level of additional attention including;

· Personal Tax Cuts worth A$31.5bn over 4 years,

· Additional Personal tax Rebates,

· Cash bonuses for Elderly Australians,

· Improvements to the Child Care Benefit Scheme,

· Additional funding for drought affected farmers,

· Significant boost to Environmental programs with A$12bn in new initiatives including National Water Plan,

· Over A$10dn in spending initiatives on Education at all levels
Major boost to Road & Rail spending,

· Over A$10bn of additional Defence spending,

· Additional A$1bn of grants for Health & Medical research and programs.

All Key Economic figures are expected to remain strong as Australia enters its 15^th consecutive year of economic growth with the highlights being

· Cash surplus of $10.6 billion

· GDP growth 3.75%

· Current account deficit - $65.75 billion (six per cent of GDP)

· Unemployment – 5%

· Employment growth - 1.25%

· Wages growth - 4.25%

· Consumer price index - 2.5%

In all it is a steady, not exciting budget, and one to be expected as the government attempts to regain lost ground in the opinion polls.

For a full review of the Budget and assessment of the impact on property markets, view our members only Special Reports section and select the Australian Budget Review 2007.