Budget 2007 Newsletter

Welcome to a special budget edition of our e-newsletter.

Budget Overview
The economy and taxation
Education
The Environment
Climate Change
Water
Managing our Natural Resources 
More Funding for Heritage
Supporting Retirement 
Boost For Local Film Industry
Special Funding for Local Governments
New Water Website
WAYS Fundraiser

The 2007 Budget builds on the sound economic management of the Howard Government to further secure and ensure our prosperity in the years to come.

The Government is locking in Australia’s prosperity and building for the future with a plan to keep our economy strong and our nation secure so that families can plan for the future with confidence.

In this Budget all Australian taxpayers will share in new personal tax cuts worth $31.5 billion – this builds on the $36.7 billion in personal tax cuts provided in the last budget.

Students will benefit from a perpetual $5 billion Higher Education Endowment Fund and a $1.7 billion investment in our universities to promote a diverse and internationally competitive education sector.

To further support families there is $2 billion in additional support for child care.

And we are supporting retirement savings by putting an extra $1.1 billion into the superannuation accounts of lower income earners through a doubling of the co-contribution paid for eligible contributions made in 2005-06.

Economy and Taxes

The billions of dollars in the Budget can seem mind boggling at times; but here are a few numbers that put things in perspective. Our economy is 1 ½ times larger than it was in 1996, and since then two million more Australians have found jobs – with average wages increasing during this time by 20 per cent in real terms.

In 1996, the Australian Government was heavily in debt, owing $96 billion, and paying $8.5 billion per year just to service the interest. Today we are debt free, and we are living within our means.

The budget provides equitable tax cuts for all, with the primary focus on low-income earners. From 1 July this year, the 30 per cent tax rate will only apply to income over $30,000 per year – up from the present $25,000 per year. Those earning $30,000 have seen their income tax bill halved by this government since 1999.

. In 1996, the top marginal tax rate cut in on incomes over $50,000. Had that level been indexed to inflation, it would have amounted to less than $68,000 by the middle of next year. But as of 1 July 2008 it will apply only to those top 2 per cent of workers earnng more than $180,000 a year.

And while we’re on the subject of taxes, the budget provides a further reform that just about everyone should celebrate – a simplified online tax return system that will be available to the nine million Australian taxpayers who file electronically. This one-click system will dramatically cut down on paperwork, saving time, money and resources.

Educating our young, caring for all

More money for childcare will see the childcare rebate increase by up to $4.10 per day, while the ability of families to claim their expenses soon after the fiscal year in which they incurred them will help the cash flow of families. Government assistance to childcare in the coming fiscal year will amount to some $3 billion – a near-trebling of the federal government’s funding for childcare since 1996-97.

This budget also shows the Australian government’s commitment to making sure our children receive the best education possible. Students and their parents will see the introduction of a “voucher” system to provide $700 worth of tutoring to children who miss key literacy and numeracy benchmarks. Schools that demonstrate sustained improvement will be able to apply for $50,000 grants. And from next year teachers will f be able to take part in a $102 million Summer Schools programme to undertake professional development in the areas of Literacy and Numeracy, Australian History, Maths, Science and English. Those who complete this additional training will receive a $5,000 bonus.

Beyond the school gates $5 billion from this year’s surplus will be used to double the investments and endowments of all Australia’s universities. This Higher Education Endowment Fund will become a perpetual fund for capital works and research facilities.

$84 million will establish new technical colleges in Sydney, Brisbane and Perth.

And a new tax-exempt payment will allow apprentices in skills-shortage trades to supplement their wages, with the government investing $549 million in this program over the next four years. 

The Government will also spend an extra $71.3 million over the next five years on subsidies to allow an extra 3000 disabled children into childcare. A one-off seniors bonus payment of $500 will be made to all individuals of Age or Service Pension age to say thank you for all their work building the prosperity we presently enjoy.

Those who care for our elderly and disabled will receive a Carer Payment will receive a bonus $1,000 payment while recipients of the Carer Allowance will receive a bonus of $600 for each eligible person in their care.
 
The Government will also provide $160 million over four years to increase support for veterans. Commencing in July 2007 the per-fortnight payment of Special Rate Disability Pension will increase by $50 and the Intermediate Rate Pension by $25. This measure will provide Australia's most disabled veterans with greater financial support,

Environment

As the nation faces severe water shortages and the impacts of climate change the responsible economic management of the Howard Government has Australia well placed to direct support where it is needed the most.

Over the last eleven years, the  Government has invested $20 billion to protect our environment. This year's budget provides new, record levels of environmental spending.

This Budget allocates $4.3 billion for 2007-2008 alone.

Full details of the Environment package are on the Department's website here  But I have set out some highlights of this year’s new commitments to the environment below:

Climate Change

• $741 million over five years to reduce global greenhouse gas emissions and help Australia prepare for the unavoidable impacts of climate change
• $150 million to double the household rebate for solar panels to $8,000.
• Establishment of an Australian Centre for Climate Change Adaptation
• Tax deductions in year of investment for the establishment of tree plantings which are set up as  carbon dioxide sinks in order to reduce net greenhouse gas emissions.
• $200 million to fund our Global Initiative on Forests and Climate – to deliver practical action on deforestation in the world's tropical forests.

Water

• $10 billion over 10 years for the National Plan for Water Security 
• $200 million more for small scale water saving measures such as rainwater tanks for schools through a six year extension of the Community Water Grants programme
• $17.7 million for water tanks for Scout Halls
  

Managing our Natural Resources

• $2 billion over five years for phase three of our Natural Heritage Trust
• $50 million over four years to contract with private land owners to manage and protect nationally significant environments,
• $46.7 million over four years to create new jobs for Indigenous Australians to deliver maintenance, restoration, protection and improvement of Australia’s environment.

Protecting Our Special Places

• $15.9 million for additional field management for the Great Barrier Reef and $14.2 million for continuation of water quality monitoring programme for the Reef.
• $7.5 million for restoration of churches and cathedrals.

The Budget has provided for a comprehensive package of measures to significantly boost support for the Australian film and television industry. This is great news for Wentworth, which is home to Fox Studios.

The package of $282.9 million represents a complete overhaul of film funding and will introduce a genuine incentive for producers to attract strong investor interest and help put the industry on a more sustainable footing.

Funding for Local Governments

Australia’s local governments will receive $1,749.4 million in Federal Government financial assistance grants in 2007-08. The Government’s grant funding is $65.2 million, or 3.9 per cent, higher than in 2006-07.

It consists of $1,211.7 million in general purpose grants and $537.7 million for local roads. The local road grants are in addition to the funding that councils receive under the AusLink Roads to Recovery Programme, 2007-08, which will be paid separately.

Actual local government determinations for Randwick, Sydney, Waverley and Woollahra Councils should be available in July following the State Grant Commission's recommendations.

New Website For Water Resources

The Department of Environment and Water Resources has recently launched a new website that includes a number of important publications including detailed information about the National Plan for Water Security.

WAYS Youth Services Fundraiser

WAYS Youth Services is holding a fundraiser at the Hughenden Hotel, 14 Queen Street in Woollahra, from 6-8pm on Sunday 3 June. WAYS was founded in 1979 as Waverley Action for Youth Services. Today, with great support from the Wentworth community, it has grown to become one of the largest community based youth organisations in NSW, employing 45 staff and helping up to 1,000 young people a week.

The evening is called 'West Wing A View Down Under'. Several prominent journalists have donated their time to steer the discussion around US politics.

For more information or to buy tickets to this fantastic event, please call WAYS on 9365-2500 or email ways@ways.org.au. Tickets are $120 each and include wine and canapes on arrival.