Report on 2010 Federal Budget

The Federal Commonwealth Budget of 2010-2011 has been created with a central task of achieving a budget surplus by 2012-2013, further strengthening the economy and to secure future growth by recognising the nation’s priorities. The main initiatives of this budget include reducing the budget deficit, easing the cost of living, building infrastructure, investing in skills for sustainable growth, renewable energy efficiency, superannuation, improving the health system and to implement further tax cuts. The Government’s strict fiscal strategy is to fully offset all new spending and to restrict real spending growth to 2 percent a year beginning 1 July 2010.

Easing Cost of Living and Makling Tax Time Simpler
In order to relieve the cost of living pressures of Australians, the Federal Government plans to alleviate more tax for working Australians which raises the effective tax-free threshold to $16 000, lowering tax on savings by giving back 50 percent discounts on interest on savings, assisting first home buyers through concessionally taxed First Home Saver Accounts, and are keeping competitive pressure on the big banks by supporting banking competition and investing $16 billion in residential mortgage-backed securities and enforcing standard deductions to simplify the tax system.

Skills for Sustainable Growth & Building Infrastructure
The Budget also focuses on investing $661 million for the Skills for Sustainable Growth strategy which will boost the skills base of our workforce and increase the productive capacity of the economy, $5.6 billion into new infrastructure and $1 billion for the renewal of rail networks.

Supports Renewable Energy & Energy Efficiency
The Federal Government has planned to spend $652 million for the Renewable Energy Future Fund which forms part of the $5.1 billion Clean Energy Initiative.

Growing the Whole Economy
As of 1 July 2010, the Resource Super Profits Tax (RSPT)...