Australian Federal Budget 2011 Essay

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This report is to examine and analyze the Australian Federal Budget for 2011. It will examine the overview of the budget including increase of spending and budget cuts, benefits and the disadvantages of this budget. This year’s budget was quite different to the last couple. This one is about budgets cuts and getting back to surplus as the deficit of 27 billion dollars and it is predicted to be in surplus by 1.7 billion dollars by 2013 although that figure has come under scrutiny if would actually get that figure. Over the last couple of years it has been about spending which would in turn stimulate the economy by more jobs and consumer spending such as the $900 that was given out to most Australians which did very well especially to the struggling retail sector. Since the Financial Crisis, most western countries have gone into a recession, particularly America and Europe; probably our biggest partners, which in turn will affect the Australian economy. Australia was one of the better countries to come out of this crisis having not gone into a recession but that is mainly the fact of the mining industry. Australia has a double economy which confuses and distorts Australia’s GDP. The average wage of an Australian non in the mining industry is 38,000 but in the mining industry; which employs 7% of the nation is 78,000 which puts the average salary up and makes it look higher than it is. This is the current overview of the Australian Federal Budget for 2011: Cost of living * Those low-income earners on $30,000 a year, around six million Australians, will see their pay packets upped by $6 a week, after changes to the low-income tax offset to start from July 1. * The government will provide $771.9 million over five years to increase the Family Tax Benefit Part A payments to $4200 a year, for each eligible teenager that stays at school. * $161 a

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