FEDERAL BUDGET RESEARCH TASK SALEEM GAGGUTURU

The Australian federal budget is a document that establishes the government's planned finance and it's conduct of operations. The purpose of the budget is to set out the economic and financial outlook for Australia and it includes consumption and income estimates for the current financial year, 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 where the 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, DisabilityCare Australia 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 spending acknowledged in the Budget, and the scheme will support more than 400,000 Australians with a disability, their families and carers. Funding to DisabilityCare will come from the increase in Medicare levy as it is set to be increased to two per cent of taxable income from July 2014. Total investment in scheme $19.3 billion over seven years The expenditure for defence would will increase by more than $5.4 billion dollars between 2013 and 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 has also 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 million dollars, in order to accomplish this. The Gonski education is absolutely necessary for primary schools because Australian school's education is falling behind compared to the other countries education. If primary school kids gain good 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 because of 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 a fair 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, the disabled people will find it difficult to play for necessities, assistance and equipment, and it will be unfair 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't spend $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 EA18G 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, and which ones don't.

The table below shows the winners and losers in the 2013 Federal Budget. The winners are the ones that benefit from the budget, where as the losers are on a disadvantage scale. Winners Losers School kids Business Gonski education reforms funded for 6 years, Tax increased for companies in order to raise includes $2.9 billion dollars in budget over four $4.2 billion dollars over 4 years. years. Disabled people Disability insurance funded with $1.9 billion dollars in the budget for seven years. Commuters Infrastructure, rail & road programs included $24 billion in the budget. Students & Employees Research, education and skills funding of $1.2 billion dollars in the budget. Miners

Banks Offshore vehicles removed to raise $320 million dollars. Super funds & trusts Now must pay monthly tax bills: receiving $1.4 billion dollars.

Disadvantaged Importers Welfare and health spending: $1.8 billion dollars Import processing charge introduced. in the budget. Forests Supporting the Tasmanian forest agreement: $330 million dollars in the budget. Parents Removed baby bonus, saving $1 billion dollars over 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 a disability 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 support DisabilityCare, 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 $97 million dollars will be allocated to Commonwealth-supported university places; furthermore, an extra $186 million dollars will be used for research infrastructure. Therefore, students & commuters will benefit to the budget, however, in order to fund this, the baby bonus will be phased and instead will be replaced by an increase to the Family Tax Benefit. Hence, parents are the categorised as the losers 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 as the NDIS.

Internet article: http://www.businessspectator.com.au/article/2013/5/14/federal-budget/budget-2013-health-edinfrastructure-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 a lifelong approach to providing care and support. However, in order to achieve this, sufficient funding must be raised. Hence, the Medicare Levy is set 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 also allocated another $600 million that will allow more citizens to access pre-school programs. The Treasurer included $97 million to boost the number of active universities, along with $186 million dollars 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 against it.
Name Background information for federal budget Australia. NDIS general information Defence information regarding the budget Link http://en.wikipedia.org/w iki/Australian_federal_bu dget http://www.ndis.gov.au/ http://www.news.com.au/mo ney/federalbudget/budget-2013defence-spending-up-asmilitary-grows/storyfn84fgcm-1226642483169 http://www.businessspecta tor.com.au/article/2013/5 /14/federalbudget/budget-2013health-ed-infrastructuredrive-spending http://www.afr.com/p/nati onal/budget/budget_winner s_and_losers_rkeiK5Pp1NZ8 jwbvkaz22K http://www.audreynay.com/ 2012/02/gronski-reportis-released.html Date accessed (DD/MM/YY) Friday 7 June 2013

Monday 10 June 2013 Tuesday 11 June 2013

Article used

Thursday 13 June 2013

Winners and Losers

Friday 14 June 2013

Gronski education

Sunday 16 June 2013

Initiatives of the budget

http://www.budget.gov.au/2012 Sunday 16 June 2013 13/content/overview/html/overv iew_key_initiatives.htm http://www.budget.gov.au/2013 Sunday 16 June 2013 14/content/overview/html/index .htm

Overview