The Ten-Minute Federal Budget | BTalk

Last Updated May 11, 2010 8:07 PM EDT

Podcast

Wayne Swan

Wayne Swan


(Episode 493; 12 minute 49) There were few surprises in the 2010 Federal Budget from the Treasurer Wayne Swan. Today on BTalk we race through it all in ten minutes with the help of Deloitte's David Pring.

The main aim was to get the budget back into surplus. He'll do it, he says, in three years --- three years ahead of schedule. Lower than expected unemployment, continued spending and the resources boom all meant company tax was higher than envisaged. That will have helped speed up the road back into the black, together with $12 billion in extra revenue from the new resources supertax and $5 billion from tobacco.

The government will also keep spending under control with a 2 percent spending cap, after inflation.

This is all dependent, of course, on passing the introduction of the supertax and a continuation of the resources boom.

The Budget also saw the introduction of a couple more recommendations from the Henry Tax Review --- including simplification of tax returns (a step towards getting rid of them altogether) and a 50 percent tax discount on the first $1,000 of interest earned on bank deposits. The Review went further, but at least it's a step in the right direction.

Tell us what you think of the Budget in the Talkback section at the end of this post.

See also:
Henry Tax Review - The Abridged Version | BTalk