$43 billion of savings

Where the savings will come from.  The Budget is set to deliver $43b of savings over five years, but where will they come from?

2012-13

2013-14

2014-15

2015-16

2016-17

Total

$m

$m

$m

$m

$m

$m

Strong and stable funding for DisabilityCare Australia

Medicare Levy increase dedicated to disability spending

3,342.6

3,936.5

4,273.7

11,552.7

Protecting the corporate tax base

Tightening the rules to prevent profit shifting

Removal of immediate deductibility for     expenditure on exploration rights and information

Amendments to improve the integrity of the consolidation regime

Targeting offshore marketing hubs and business restructures

Improving the operation of the Offshore Banking Unit regime

Improving the integrity of the foreign resident CGT regime

Preventing dividend washing

108.4

895.3

1,499.3

1,693.5

4,196.5

Funding our National Plan for School Improvement

Student Start-up Scholarships as income contingent loans

1.5% ad 1.25% efficiency dividend for two years only for Higher Education additional funding

Cap deductions for work-related education expenses at $2,000

-.10

117.9

459.8

966.6

1,060.1

2,603.3

Not proceeding with the additional increase to FTB Part A

615.8

623.3

632.0

646.4

2,517.5

Family payment reform

Increase FTB – A to replace the baby bonus from 1 March 2014

Indexation pause extension for upper income test limits for family payments and supplements until the end of the forward estimates

-0.5

154.6

488.7

742.8

976.0

2,361.7

Changes to the Clean Energy Future package

109.8

191.8

256.6

1,542.3

1,326.7

3,427.3

ODA – Deferring Australia’s Growth Target

326.5

688.2

906.5

1,921.2

Sustainable health spending

Increase general threshold of Extended Medicare Safety Net

Realign indexation of MBS to financial year

Phase out net medical expense tax offset (NMETO)

-0.1

154.8

335.3

506.6

736.8

1,733.4

Other revenue

Monthly instalments payments (PAYG) for large taxpayers

Research and development (R&D) tax incentive savings

Import Processing Charge – ensuring full cost recovery

91.6

538.7

1,494.2

999.8

3,124.3

Other

275.0

713.5

2,130.6

3,573.3

4,029.4

10,721.8

Total saves (a)

383.3

2,148.4

9,397.4

15,581.6

16,649.0

44,159.8

(a) In underlying cash terms, the Budget delivers savings of $43 billion over five years.

Written by Debbie McTaggart

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