Budget Highlights

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Budget at a Glance 2001-2002
Fiscal Outlook    
  • An underlying cash surplus of $1.5 billion is expected in 2001-02 - the fifth surplus in a row. Further surpluses are in prospect.
  • This is the longest run of cash surpluses in almost 30 years.
  • By the end of 2001-02, the Government will have repaid around $60 billion of net debt.
   
Economic Outlook    
  • Economic growth is expected to rebound to 3% in 2001-02.
  • Lower inflation of 2% is expected.
  • Unemployment is expected to be around 7%.
  • The current account deficit is at decade lows.
Further Tax Cuts    
  • Around $5 billion next year in tax cuts and simpler administration.
  • Full input tax credits for motor vehicles brought forward to 23 May 2001. This will slash business costs by over $600 million and boost motor vehicle sales.
  • Company tax rate to drop further - from 34% to 30%.
  • State Financial Institutions Duty (FID) and stamp duty on most share transactions to be abolished.
  • Fuel excise reduced by 1.5 cents per litre.
  • Fuel excise indexation abolished.
Acknowledging Older Australians    
  • Payment of $300 for people of Age Pension age who receive income support or are outside the taxation and social security system.
  • Increase in the effective tax-free threshold for people of Age Pension age.
  • Increase in income thresholds for Commonwealth Seniors Health Card and extension of the telephone allowance and other concessions to all holders of a Commonwealth Seniors Health Card.
  • Superannuation assets exempted from social security means tests for people aged between 55 years and the Age Pension age.
  • Payment of $25,000 to Aust. Defence Force Prisoners of War of the Japanese, civilian internees and detainees of the Japanese or their surviving spouses.
Australian's Working Together    
  • $1.7 billion to build a more active participation-based social safety net to substantially improve our welfare system.
  • The new system improves employment assistance, encourages training and rewards those engaging in part-time and full-time work.
  • This will result in more people moving from welfare into work, securing a better income for themselves and their families, and in turn delivering benefits to all Australians.
Enhancing Australia's Health    
  • $290 million for high priority areas, including mental health, asthma, diabetes and cervical cancer.
  • $43 million to improve after hours medical care.
  • Increases in patient rebates for GP services.
  • An extra $162 million for sport.
Rural and Regional Australia    
  • $593 million for strengthened quarantine protection.
  • $147 million for rural and regional telecommunications and internet services.
  • $104 million for more practice nurses in rural and regional Australia.
  • Over 1,800 more places in regional universities.
  • $850 million for roads in rural and regional Australia.
Safeguarding our Natural Resources    
  • Another $1.0 billion for the Natural Heritage Trust so it can continue to promote sustainable agriculture and natural resource management.
  • $700 million for a National Action Plan to address salinity and water quality, announced in October.
Addressing Indigenous Disadvantage    
  • $86 million for the Commonwealth native title system.
  • $40 million for primary health care services for indigenous Australians.
  • $83 million to promote self-reliance for indigenous people.
  • An extra $75 million for indigenous housing.
Education and Innovation    
  • $3.0 billion to promote innovation.
  • 5,500 more university places for information and communications technology, maths and science.