• · $4.8 billion in new support for pensioners and carers, including a lump sum payment of $1400 to single pensioners and $2100 to pensioner couples. People who are receiving carer allowance will also receive $1000 for each eligible person in their care. These payments will be made from Monday 8 December and are intended to provide additional support in the nine months between now and when long-term reforms are introduced from the beginning of the next financial year.

• ·Self-funded retirees who are eligible for a Seniors Concession Allowance or hold a Commonwealth Seniors Health Card will also receive a payment of $1400 for singles or $2100 for couples.

• · $3.9 billion in support payments for low and middle income earners through a one-off payment of $1000 for each eligible child in their care. These payments will be made from Monday 8 December.

• · $1.5 billion for first home buyers under a newly announced First Home Owners Boost with effect from Tuesday 14 October – all contracts entered into by 30 June 2009 will be eligible for this new additional assistance:
  • first home buyers who purchase established homes will receive the grant, which they are currently entitled to doubled from $7000 to $14,000
  • first home buyers who purchase a newly-constructed home will receive an extra $14,000 to take their total grant to $21,000

The government claims that this $10.4 billion strategy will be entirely funded from the budget.  Treasury advises that the Budget will be in surplus after these measures.

In an interview on ABC Radio National, the treasurer has indicated that the government intends to close what he calls a tax loophole concerning the use of executive share option schemes. Mr Swan said there has been a loophole in the system ‘where those with the shares who are predominately higher income earners and people who’ve accumulated shares or rights through their company, have been able to avoid paying their fair share of tax’.

It is estimated that $77 million in tax is avoided annually through this “loophole”.

He said that Australia faces many challenges including fighting inflation, tackling climate change and securing water, making our workforce the most highly skilled in the world, lifting workforce participation and productivity in the face of an ageing population, delivering modern infrastructure and a world-class broadband network, and ending the blame game between federal and state governments.

Mr Swann is seeking submissions on priorities for the 2008-2009 budget.

If you want to give the Government the benefit of your advice, let them know by 18 January 2008.

Lengthier submissions should ideally include an executive summary of no more than two pages, and be accompanied by an electronic version, either on disk or CD, or emailed in Microsoft Word or Adobe Acrobat format.

Submissions should be forwarded to the address below:
Address for Submission:
Budget Policy Division
Department of the Treasury
Langton Crescent
PARKES ACT 2600
Or email to: prebudgetsubs@treasury.gov.au

Contact officer: Penny Sirault
Telephone: (02) 6263 3725