economics federal budget assignment

7/27/2019 Economics Federal Budget assignment

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FEDERAL BUDGET RESEARCH TASK SALEEM GAGGUTURU

The Australian federal budget is a document that establishes the government's planned finance andit's conduct of operations. The purpose of the budget is to set out the economic and financialoutlook for Australia and it includes consumption and income estimates for the current financialyear, and 3 forward financial years. It also shows the government's priorities, and how the

government intends to achieve this. Without the federal budget, the country wouldn't know wherethe nation's money is going to and why they're paying tax. It wouldn't know where the revenue will

be spent or which category it requires more assistance. Hence, this is why the federal budget exists.

The most amount of money spent in the budget includes the Gonski education, DisabilityCareAustralia and spending in defence.The Gonski education is a school funding reform (outlined in Gonski review), and will consist of $9.8 billion dollars over six years from 2014-15. DisabilityCare Australia is another major spendingacknowledged in the Budget, and the scheme will support more than 400,000 Australians with adisability, their families and carers. Funding to DisabilityCare will come from the increase inMedicare levy as it is set to be increased to two per cent of taxable income from July 2014. Totalinvestment in scheme $19.3 billion over seven yearsThe expenditure for defence would will increase by more than $5.4 billion dollars between 2013and the year 2016. Proportion of this money will be used to purchase twelve EA-18G Growler electronic attack aircraft, which will cost $3 billion dollars over 9 years. Some of this money hasalso been allocated for navy ships, submarines studies, fighter jets and surveillance place. Other defence expenditure will be used for the protection of our borders, which will include $9.9 milliondollars, in order to accomplish this.The Gonski education is absolutely necessary for primary schools because Australian school'seducation is falling behind compared to the other countries education. If primary school kids gaingood education from kindergarten, they will find it easier in the upcoming years such as the HSC or

tertiary education. The companies still argue that there is a lack of skills to their employees becauseof our previous education system. Therefore, the Gonski education is vital because it will help kids become more educated and this lead to stronger economy in the future.Just like the Gonski education, the NDIS is vital to all disabled people because everyone deserves afair go. Without the NDIS, disabled people will have difficulties getting from place to place,especially if they are on a wheelchair, as there will be a lack of ramps. Also, without this, thedisabled people will find it difficult to play for necessities, assistance and equipment, and it will beunfair to them. Hence, many people are supporting and looking forward to the NDIS as it will

benefit the society as a whole.As a contrast to this, too much money is spent on defence. The Australian government shouldn'tspend $3 billion dollars for an attack aircraft as this money can be used for a better use. With half of

this money, it can be invested in to research of establishing stronger weapons; we do not need “EA-18G GROWLER electronic aircraft”, we can just upgrade the aircrafts we have now for half the

price. Too much money is going towards defence and it shouldn't have to be this way.This table below shows all the members of the society and which ones benefit in the budget, andwhich ones don't.



The table below shows the winners and losers in the 2013 Federal Budget. The winners are the onesthat benefit from the budget, where as the losers are on a disadvantage scale.

Winners Losers

School kidsGonski education reforms funded for 6 years,includes $2.9 billion dollars in budget over four years.

BusinessTax increased for companies in order to raise$4.2 billion dollars over 4 years.

Disabled peopleDisability insurance funded with $1.9 billiondollars in the budget for seven years.

Miners

CommutersInfrastructure, rail & road programs included$24 billion in the budget.

BanksOffshore vehicles removed to raise $320 milliondollars.

Students & EmployeesResearch, education and skills funding of $1.2

billion dollars in the budget.

Super funds & trusts Now must pay monthly tax bills: receiving $1.4

billion dollars.DisadvantagedWelfare and health spending: $1.8 billion dollarsin the budget.

ImportersImport processing charge introduced.

ForestsSupporting the Tasmanian forest agreement:$330 million dollars in the budget.

ParentsRemoved baby bonus, saving $1 billion dollarsover 4 years.

Compared to other countries, such as India or China, Australian primary school kids are falling behind. For this reason, an increase in spending for school kids will try to balance this scale.

The Prime Minister said Sandy, disabled 17 year old boy from Brisbane, and others with adisability would finally have "security and dignity" with the start of the DisabilityCare scheme.

The Prime Minister said: “this, above all, is why Australians so overwhelmingly supportDisabilityCare”, and so, this is on the winners column on the winners and losers table.

Increased money has been allocated to infrastructure and university places. Mr Swan said said $97million dollars will be allocated to Commonwealth-supported university places; furthermore, anextra $186 million dollars will be used for research infrastructure. Therefore, students & commuterswill benefit to the budget, however, in order to fund this, the baby bonus will be phased and insteadwill be replaced by an increase to the Family Tax Benefit. Hence, parents are the categorised as thelosers in the budget.

Businesses also are in a disadvantage scale as the tax increased for companies in order to raise $4.2 billion dollars over 4 years. Along wit this, super funds & trusts also has an introduction to tax,which will produce a revenue of $1.4 billion dollars, which can be used for other scheme, such asthe NDIS.



Internet article:http://www.businessspectator.com.au/article/2013/5/14/federal-budget/budget-2013-health-ed-infrastructure-drive-spending

In the article present, both DisabilityCare Australia and the Gonski education are beneficiaries of the government spending. The national disability insurance scheme will turn the way we currently

provide disability services. It will recognise that disability is for a lifetime, and so it will take alifelong approach to providing care and support.However, in order to achieve this, sufficient funding must be raised. Hence, the Medicare Levy isset to be increased to 2% of taxable income. According to Mr Swan, this is set to raise $20.4 billion

between fiscal 2015 and fiscal 2019.Concurrently the government will input $28.4 billion into education with schools accounting to be$12.4 billion. In total, $29.7 billion will be measured undisputed. In addition, the government alsoallocated another $600 million that will allow more citizens to access pre-school programs. TheTreasurer included $97 million to boost the number of active universities, along with $186 milliondollars to research infrastructure.The relationship between DisabilityCare Australia and Gonski education are that they are strongly

supported by the Australian society. They are both widely accepted and no one has anything againstit.

Name Link Date accessed (DD/MM/YY)

Background informationfor federal budgetAustralia.

http://en.wikipedia.org/wiki/Australian_federal_budget

Friday 7 June 2013

NDIS general information http://www.ndis.gov.au/ Monday 10 June 2013

Defence informationregarding the budget

http://www.news.com.au/money/federal-budget/budget-2013-defence-spending-up-as-military-grows/story-fn84fgcm-1226642483169

Tuesday 11 June 2013

Article used http://www.businessspectator.com.au/article/2013/5/14/federal-budget/budget-2013-health-ed-infrastructure-drive-spending

Thursday 13 June 2013

Winners and Losers http://www.afr.com/p/national/budget/budget_winner

s_and_losers_rkeiK5Pp1NZ8jwbvkaz22K

Friday 14 June 2013

Gronski education http://www.audreynay.com/2012/02/gronski-report-is-released.html

Sunday 16 June 2013

Initiatives of the budget http://www.budget.gov.au/2012-13/content/overview/html/overview_key_initiatives.htm

Sunday 16 June 2013

Overview http://www.budget.gov.au/2013-14/content/overview/html/index.htm

Sunday 16 June 2013

http://www.businessspectator.com.au/article/2013/5/14/federal-budget/budget-2013-health-ed-infrastructure-drive-spending




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