Wayne Swan has delivered his promised Budget surplus, with a $44 billion deficit in 2011-12 expected to turn into a $1.5 billion surplus in 2012-15 thanks to more than $32 billion of cuts.
Here are the 10 key points from the 2012 Budget:
> The Government will scrap its planned 1% cut in the company tax rate which was due to start for small businesses from July 2012 and for larger businesses a year later. The Government says it remains committed to the cuts but blamed the Opposition for blocking them. This measure alone will save $4.8 billion over the forward estimates.
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> The plan to introduce standard tax deductions of up to $1,500 has been deferred in a move that will save $2.1 billion over four
> The Government will further crack down on its living away from home allowance in order to save $1 billion, and will tighten termination payment tax breaks to rein in “golden handshakes” for executives.
> The planned tax breaks for green building programs will be dumped entirely, saving $405.2 million over the next four years. The Government says the program no longer represents value for money.
> The Government has confirmed the introduction of the loss carry-back tax break for businesses. The measure will cost $714 million over the next four years.
> Cash handouts to low and middle income families will increase substantially, with $1.8 billion to boost the rate of Family Tax Benefit Part A and a new Schoolkids Bonus that will replace the Education Tax Refund at a cost of $2 billion. In addition, the Government will spend $1.1 billion on supplements for those on income support.
> As foreshadowed, tax concessions on super contributions of those earning over $300,000 will be cut in a move that will save $946.5 million. In addition, plans to introduce a higher concessional contribution cap for those with less than $500,000 in super will be deferred.
> Treasury has forecast growth of 3.25% for the 2012-13 year, with unemployment tipped to tick up to 5.5%. Inflation is expected to fall to 2.5% over the next two years.
> The Budget is predicted to bounce back from a surplus of $44 billion in 2011-12 to a surplus of $1.5 billion in 2012-13 and a surplus of $2 billion the year after.
> The Government has made a number of smaller spending initiatives, including $30 million for a new manufacturing technology centre and $61 million for a plan to attract Asian tourists.