Government Releases Economic Statement

nid), array('absolute' => TRUE)); $title = $entity->title; ?>

THE TREASURER, Chris Bowen, and the Finance Minister, Senator Penny Wong, have announced the following:

  • The terms of trade have been revised down: the expected deficit in 2013-14 is now $30.1 billion, and the expected deficit in 2014‑15 is now $24 billion.
  • The government plans to return the budget to a surplus of $4 billion in 2016-17 by increasing the tax on tobacco by 12.5% per year over the next four years.
  • A 0.05% levy will be placed on all bank deposits below $250,000 that are guaranteed by the government from 2016.
  • The Government says it will also make "the public service more efficient", and reduce growth in overseas aid.
  • Unemployment is expected to rise to 6¼% in 2012-14
  • Real GDP growth is expected to be 2½% in 2013‑14, but in 2014‑15 economic growth is expected to strengthen to 3%. 
  • Nominal GDP is forecast to increase by 3¾% in 2013‑14 and 4½% in 2014‑15, well below its 20‑year average of 6½%.


You can read the full economic policy here


The Shadow Treasurer Joe Hockey claims the the budget is in freefall under Labor.


Mr Hockey and the Opposition's Finance spokesman Andrew Robb held a media conference after the government's announcement, claiming the budget has fallen $3 billion a week over the last 10 weeks.


Mr Hockey also said he is concerned that nearly 800,000 people will be unemployed.