Budget snapshot

The 2013-2013 federal budget at a glance.

By InvestSMART · 9 May 2012

By InvestSMART ·
9 May 2012

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The 2013-2013 federal budget at a glance.

Budget at a glance

SAVINGS

Defence - $5.4 billion, over four yearsScrapping promised company tax cut - $4.8 billion, over four yearsForeign aid - $2.9 billion over four yearsTighter superannuation concessions - $2.4 billion over four years More than 3000 public service jobs to goSPENDING

National Disability Insurance Scheme - $1 billionSchoolkids Bonus - $2.1 billionBoosting family tax benefits - $1.8 billion$3.7 billion for the aged to remain at home longer$1.5 billion over five years for remote jobs and community program$38.8 billion over four years to higher education with extra support for students from poor backgrounds.FAMILIES

$1.8 billion in tax breaks to Family Tax Benefit Part AModest tax cut for those earning up to $80,000Extra $80 a week for parents of school children aged 16-19 and extra $820 for secondary school students and $410 for primary school studentsSuperannuation guarantee rate rises to 12 per centECONOMIC FORECAST

$1.5 billion surplus in 2012-13, to rise to $7.5 billion by 2015-16Growth at 3 per cent in 2011-12Unemployment to remain at 5.5 per cent in the next two years- compiled by Richard Willingham

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Frequently Asked Questions about this Article…

What are the key savings measures in the 2013 federal budget that investors should know about?

The budget lists several headline savings measures, including defence cuts of $5.4 billion over four years, scrapping a promised company tax cut worth $4.8 billion over four years, reductions to foreign aid of $2.9 billion over four years, and tighter superannuation concessions saving $2.4 billion over four years. The budget also flags more than 3,000 public service job losses.

Was the promised company tax cut included in the budget and what does the budget say about it?

No — the budget scrapped the previously promised company tax cut. The decision is recorded as a $4.8 billion saving over four years in the 2013 federal budget summary.

What superannuation changes are in the budget and how are they listed?

The budget includes a tightening of superannuation concessions, listed as saving $2.4 billion over four years. It also notes that the superannuation guarantee rate will rise to 12 percent.

What family and school support measures does the 2013 budget include?

Family and education measures include $1.8 billion in tax breaks to Family Tax Benefit Part A, a modest tax cut for those earning up to $80,000, a Schoolkids Bonus of $2.1 billion, extra payments for parents of schoolchildren aged 16–19 (an extra $80 a week is listed), $820 extra for secondary school students and $410 extra for primary school students, and boosting family tax benefits by $1.8 billion.

How much does the budget allocate to disability and aged‑care programs?

The budget provides $1 billion for the National Disability Insurance Scheme (NDIS) and allocates $3.7 billion aimed at helping the aged remain at home longer.

What spending is earmarked for higher education and remote community programs?

Higher education receives $38.8 billion over four years, including extra support for students from poorer backgrounds. The budget also sets aside $1.5 billion over five years for remote jobs and community programs.

What economic forecasts are included in the budget that everyday investors might want to watch?

The budget forecasts a $1.5 billion surplus in 2012–13, rising to $7.5 billion by 2015–16. It also cites economic growth of 3 percent in 2011–12 and predicts unemployment will remain at about 5.5 percent for the next two years.

How does the budget balance savings and spending priorities overall?

The 2013 budget combines targeted savings (defence cuts, scrapping the company tax cut, foreign aid reductions and tighter super concessions) with increased spending in social areas — notably NDIS, higher education, family tax benefits, aged‑care support and school-related payments — reflecting a mix of fiscal consolidation and social investment priorities.