13 May 2014
New Australian budget favors business
FXStreet (Łódź) - In its annual Budget Release published on Tuesday the Australian Government unveiled plans to cut taxes, increase spending on infrastructure and provide financial assistance to companies in order to boost employment in the country.
"Rather than corporate welfare, the government’s focus will be on strengthening the overall business environment, so that enterprise, large and small, can create more jobs in Australia," Treasurer Joe Hockey told parliament following the release of the Budget.
Apart from a reduction of the corporate tax by 1.5% and spending an additional AUD 11.6 billion on infrastructure, the Australian Government said it would impose a 2% levy on income over 180K, lay off 16500 public servants by 2016-17 and raise the retirement age to 70 by 2035.
The budget release also carried forecasts pointing to the Australian unemployment rate dropping to 6.25% in 2014-15 and then to 5.75% by 2017-18. Inflation is expected to reach 2.25% in 2014-15 and then 2.5% in 2017-18.
Australia's budget deficit is projected at AUD 49.9 billion in 2013-14, at AUD 17.1 billion in 2015-16, and at AUD 2.8 billion in 2017-18.
The Australian remained unmoved after the release at 0.9340 against the greenback.
"Rather than corporate welfare, the government’s focus will be on strengthening the overall business environment, so that enterprise, large and small, can create more jobs in Australia," Treasurer Joe Hockey told parliament following the release of the Budget.
Apart from a reduction of the corporate tax by 1.5% and spending an additional AUD 11.6 billion on infrastructure, the Australian Government said it would impose a 2% levy on income over 180K, lay off 16500 public servants by 2016-17 and raise the retirement age to 70 by 2035.
The budget release also carried forecasts pointing to the Australian unemployment rate dropping to 6.25% in 2014-15 and then to 5.75% by 2017-18. Inflation is expected to reach 2.25% in 2014-15 and then 2.5% in 2017-18.
Australia's budget deficit is projected at AUD 49.9 billion in 2013-14, at AUD 17.1 billion in 2015-16, and at AUD 2.8 billion in 2017-18.
The Australian remained unmoved after the release at 0.9340 against the greenback.