- GDP expected to be below trend at 2.5% in 2014/2015 before accelerating to 3% in 2015/2016.
- Nominal GDP weak at 3% in 2014/2015 growing to 4.5% in 2015/2016.
- Unemployment rate set to rise from 6% in 2013/2014 to 6.25% in 2014/2015
- Surplus of over 1% of GDP projected by 2024/2025
- Underlying cash deficit expected to be $29.8bn in 2014/2015 falling to $2.8bn in 2017/2018
- Size of Government reduced with the ratio of payments to GDP falling from 25.9% in 2013/2014 to 24.8% in 2017/2018
The indexation of fuel excise is being spent on a wide array of infrastructure projects.
New investments include:
- $1 billion for East-West Link Stage 2 in Melbourne, which combines with a further $500 million being provided for the project from existing Infrastructure Investment Programme funding, for a total $1.5 billion investment to 2018/2019;
- $866 million for the Perth Freight Link in Western Australia, taking the total Federal investment in the project to $925 million;
- The Toowoomba Second Range Crossing in Queensland;
- The North-South Road Corridor in Adelaide;
- Northern Territory road upgrades;
- $229 million for a National Highway Upgrade Programme;
- Additional funding of $200 million for the Black Spot Programme; and
- Additional funding of $350 million for the Roads to Recovery Programme.
Other investments include:
- $2bn loan to speed up Stage 2 of the WestConnex project in Sydney
- $2.9bn over 10 years towards roads on the Western Sydney infrastructure plan
- $77.8m to establish a Western Sydney Infrastructure unit to manage the development of the second airport at Badgery's Creek.
For more information about the Federal Budget, please contact us on 02 9957 4033 or via our contact form
Want to keep up to date with tax news for small business? Follow batescosgraveCA on Linkedin, Google+ or Twitter
Last updated May 2014. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.