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| Version 3 | Version 4 |
|---|---|
| Australia aims to nearly halve budget deficit in a year | Australia aims to nearly halve budget deficit in a year |
| (about 9 hours later) | |
| Australia's government aims to nearly halve its budget deficit over the next year through a combination of tough spending cuts and tax increases. | Australia's government aims to nearly halve its budget deficit over the next year through a combination of tough spending cuts and tax increases. |
| In his speech to parliament, Treasurer Joe Hockey said "the age of entitlement is over" and that "the days of borrow and spend must come to an end". | In his speech to parliament, Treasurer Joe Hockey said "the age of entitlement is over" and that "the days of borrow and spend must come to an end". |
| Under their plans, the deficit is forecast to fall from $50bn Australian dollars ($47bn; £28bn) to $30bn. | Under their plans, the deficit is forecast to fall from $50bn Australian dollars ($47bn; £28bn) to $30bn. |
| However, the spending cuts are expected to result in thousands of job losses. | However, the spending cuts are expected to result in thousands of job losses. |
| The economic blueprint also includes plans for the possible sale of assets such as the Royal Australian Mint and aural aid-maker Australian Hearing. | |
| For the financial year starting 1 July, the government is looking to spend A$11bn on key infrastructure projects such as roads, railways and a new airport in Sydney. | For the financial year starting 1 July, the government is looking to spend A$11bn on key infrastructure projects such as roads, railways and a new airport in Sydney. |
| They also announced plans to create a A$20bn medical research fund in a bid to help diversify its economy away from its reliance on mining. | They also announced plans to create a A$20bn medical research fund in a bid to help diversify its economy away from its reliance on mining. |
| The government also fielded a proposal to raise Australia's retirement age to 70 by 2035, to combat the problems associated with an ageing population. | The government also fielded a proposal to raise Australia's retirement age to 70 by 2035, to combat the problems associated with an ageing population. |
| Australian Chamber of Commerce and Industry chief executive Kate Carnell welcomed the move, saying: "This is the budget we had to have. | Australian Chamber of Commerce and Industry chief executive Kate Carnell welcomed the move, saying: "This is the budget we had to have. |
| "It's a budget that delivers short-term pain for all of us, including short-term pain for business, but there is significant long-term gain for Australia," she said. | "It's a budget that delivers short-term pain for all of us, including short-term pain for business, but there is significant long-term gain for Australia," she said. |
| Political capital | Political capital |
| Australian Prime Minister Tony Abbott is using his first term to push through the controversial cuts, which his coalition hopes will return Australia's budget to surplus in the next decade. | Australian Prime Minister Tony Abbott is using his first term to push through the controversial cuts, which his coalition hopes will return Australia's budget to surplus in the next decade. |
| Their aim is to bring Australia's finances into the black in time for the next round of elections, which are due to be called by 2016. | Their aim is to bring Australia's finances into the black in time for the next round of elections, which are due to be called by 2016. |
| In the interim, though, foreign aid and welfare programs will have less funds and several government entities will be downsized. | In the interim, though, foreign aid and welfare programs will have less funds and several government entities will be downsized. |
| This includes Australia's state broadcaster, which will lose its contract for an international television service into Asia. | This includes Australia's state broadcaster, which will lose its contract for an international television service into Asia. |
| The Australian Broadcasting Corporation will see its ability to run the Australia Network terminated this year for failing to be "cost-effective". | The Australian Broadcasting Corporation will see its ability to run the Australia Network terminated this year for failing to be "cost-effective". |
| Overall though, 16,500 employees from across Australia's public sector are expected to lose their jobs because of the new budget. | Overall though, 16,500 employees from across Australia's public sector are expected to lose their jobs because of the new budget. |
| Missing plane costs | Missing plane costs |
| The government did not include defence spending in its cuts, and said it had allocated $84m to the continuing search for missing Malaysian Airlines plane MH370. | The government did not include defence spending in its cuts, and said it had allocated $84m to the continuing search for missing Malaysian Airlines plane MH370. |
| Australia has been leading the effort to find the missing Malaysian airliner, which went missing on 8 March with more than 239 people onboard. | Australia has been leading the effort to find the missing Malaysian airliner, which went missing on 8 March with more than 239 people onboard. |
| Officials believe the plane ended up in the Southern Indian Ocean, where a massive search and rescue operation has been underway for more than two months. | |
| The government documents state that the amount will depend on several factors, including the length of the search and international contributions. | The government documents state that the amount will depend on several factors, including the length of the search and international contributions. |
| Economy costs | Economy costs |
| In the budget, the government forecast the Australian economy will grow by 2.5% this year. | In the budget, the government forecast the Australian economy will grow by 2.5% this year. |
| It has been looking to offset the effects of the end of the decade-long country's mining boom. | It has been looking to offset the effects of the end of the decade-long country's mining boom. |
| Australia's economy has been carried by China's demand for natural resources such as iron ore and coal. However, that trend has reversed as the world's second-largest economy slows down. | Australia's economy has been carried by China's demand for natural resources such as iron ore and coal. However, that trend has reversed as the world's second-largest economy slows down. |
| As a result, Australia's central bank has kept interest rates at a record low of 2.5% to help stimulate the economy as mining investment cools. | As a result, Australia's central bank has kept interest rates at a record low of 2.5% to help stimulate the economy as mining investment cools. |
| The Australian dollar showed little reaction following the announcements, since many of them were expected by market participants. | The Australian dollar showed little reaction following the announcements, since many of them were expected by market participants. |
| "We knew it was going to be a tough budget and that's what it is," said Michael Blythe, chief economist at Commonwealth Bank. | "We knew it was going to be a tough budget and that's what it is," said Michael Blythe, chief economist at Commonwealth Bank. |