On 8 May, the government announced the budget for the fiscal year 2012/13, which begins on 1 July. The aim of the budget plan is to restore a fiscal surplus, following three years of deficits. According to the budget statement, the country will achieve a surplus of 0.2%, contrasting the 2.8% deficit estimated for the fiscal year 2011/12. The majority of the savings will be achieved through a reduction in expenditures, in particular defence spending and aid to developing countries. Further resources will come from scrapping a planned reduction in the corporate income tax. Part of the savings from expenditure cuts will be channelled towards businesses and households, in the form of a better tax regime for small companies and an increase in family payments. In his budget address to the parliament, Treasurer Wayne Swan stated that a surplus will represent a buffer for the Australian economy against the uncertain global economic environment and that it will provide leeway for the Reserve Bank of Australia (RBA) to reduce interest rates further. In fact, according to analysts, providing the RBA with the flexibility to pursue further monetary easing was one of the main goals of the budget presented by the Gillard administration. Lower interest rates will help easing upward pressure on the Australian dollar, thus improving the outlook for the exporting sector which have been hit hard by the strong currency in recent months.
Government presents FY 2012/13 budget
May 17, 2012
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Australia Economic News
October 12, 2016
The Westpac-Melbourne Institute Survey of Consumer Sentiment increased 1.1% in October as the index rose from September’s 101.4 to 102.4.
October 11, 2016
The business confidence index published by the National Australia Bank (NAB) was stable in September at August’s 6 points.
October 5, 2016
Nominal retail sales inched up 0.4% in August from the previous month in seasonally-adjusted terms, up from July’s flat reading.
October 4, 2016
At its 4 October monetary policy meeting, the Reserve Bank of Australia (RBA) kept its policy rate steady at an all-time low of 1.50% after cutting its rate by 25 basis points twice this year, once in May and once in August.
September 15, 2016
The labor market lost 3,900 net new jobs in August compared to the previous month in seasonally-adjusted terms.