FP BLOG
Winners & Losers of the 2011 Australian Federal Budget
Monday 21, May 2012
With the 2011 Australian Federal Budget set at $365.8 billion, who
will walk away unscathed from the cuts and who will have to cope with
their losses? Let’s go over those who will benefit from the budget
first…Since the government wants to strengthen the workforce and extend more opportunities to the people of Australia, a lot of money has been allotted to doing just that. For instance, the National Workforce Development Fund will be receiving $558 million in order to develop training locations all over the country; these facilities will also include new vocational education and services. $35 billion will be invested in ports, roads and rails; $1 billion alone will go to the duplication of the Pacific Highway. Besides roadways and workforce development, what changes will Australians see, you ask?
The 2011 budget is designed to help families, as well as low income earners, too. Up to $300 a year will be brought forward from the Low Income Tax Offset in pay packets. There will also be an increase in the Family Tax Benefit (Part A) – up to $4,208, to be exact, along with more flexible access to these funds. $16.4 billion has been set aside for better healthcare and hospitals; $2.2 billion (over the course of 5 years) goes to national mental health care reform; $53 million will be used to improve access to dental care, particularly for lower income families; and lastly, regarding healthcare, $717 million will help to expand the obtainment of more affordable medicines, and diagnostic imaging services.
Spending cuts of $22 billion will hopefully make it possible for the country to get out of the red within the next 2-3 years. Unfortunately, these cuts will not go unnoticed...
The national solar schools program will be closed 2 years earlier than anticipated (mid-2013); civilian side defense positions have been cut down by 1,000; defense equipment program takes a large loss with $1.3 billion cut over the next 4 years; and, a complete phase out of the Dependent Spouse Tax Offset just name a few.
Only time will tell how well this budget works out.