The Treasury's economic overview

12 May 2011

Key points

Budget deficit forecast of $22.6 billion in 2011/2012.
• Real GDP forecast to grow 4% in 2011/2012 (3.75% in 2012/2013) mostly from commodity exports and business investment.
• New business investment is expected to boom at 16% in 2011/2012 and 14.5% in 2012/2013 (underpinned by resources sector).
• Wages expected to grow 4% over the coming financial year.
• Inflation (underlying) expected to increase from 2.5% to 3% in June 2013.
• Household consumption expected to increase by 3.5% in 2011/2012 and 2012/2013.
• Dwelling investment soft at 1.5% under interest rate pressure.
• Exports expected to grow at 6.5% - again off the back of the resources sector.

Download Treasury documents

• Budget speech
• 2011/2012 Budget website
• Treasurer’s website

Key Budget media releases

• Keeping Low-Income Earners Exempt from Medicare Levy
• Reforms to Car Fringe Benefit Rules
• More Help for Australian Small Business
• Making Australia's Tax System Simpler and Fairer
• Phasing out the Dependent Spouse Tax Offset
• Making it Easier for Charities to Help Those Who Need it
• Superannuation - Reform of Excess Contribution Regime Gives Australians New Powers to Request Refunds
• Removal of Income Tax Impediments Affecting Special Disability Trusts
• Changes to the Low Income Tax Offset for Non-Work Income of Minors
• Improving Tax Fairness and Compliance

More information

2011/12 Budget (PDF)

The nip n tuck budget

Cutting back Government allowances and spending on incentives

Budget winners and losers

Reforms to tax compliance