Treasurer determined to get out of the red
(11 April 2011 – Australia) Commonwealth tax collections had fallen short by A$4.5 billion over the first eight months of this financial year according to figures released on Sunday by Treasurer Wayne Swan.
Mr Swan said he expected the federal budget to return to surplus in 2012, however the May budget would be a tough one.
"The summer’s natural disasters, continued consumer caution, the subdued recovery in household wealth, and the higher dollar are all weighing heavily on government revenues," Mr Swan said.
"These factors mean that tax receipts from businesses and wage earners are lower than was expected when we put together the mid-year budget update late last year."
Personal income tax collection were down by A$1 billion and business tax collections had recorded A$3 billion lower than expected by Treasury’s mid-year economic and fiscal outlook forecasts released last November.
Mr Swan said the government was still determined to get back in to surplus, and that would mean making difficult decisions to fulfil its election promises.
The budget to be released on 4 May will be Mr Swan’s fourth, and he told parliament last month in a ministerial statement that when faced with a economy reaching full capacity in coming years, it was essential to maintain a very strong fiscal policy.
More than 300,000 jobs have been added to the workforce in the past year, the national income continues to strengthen from robust terms of trade, and there was a very solid investment pipeline, particularly in the resources sector.
'All this underscores the need for a very strong and tight fiscal policy and the return to surplus,'' he said.
"The summer’s natural disasters, continued consumer caution, the subdued recovery in household wealth, and the higher dollar are all weighing heavily on government revenues," Mr Swan said.
"These factors mean that tax receipts from businesses and wage earners are lower than was expected when we put together the mid-year budget update late last year."
Personal income tax collection were down by A$1 billion and business tax collections had recorded A$3 billion lower than expected by Treasury’s mid-year economic and fiscal outlook forecasts released last November.
Mr Swan said the government was still determined to get back in to surplus, and that would mean making difficult decisions to fulfil its election promises.
The budget to be released on 4 May will be Mr Swan’s fourth, and he told parliament last month in a ministerial statement that when faced with a economy reaching full capacity in coming years, it was essential to maintain a very strong fiscal policy.
More than 300,000 jobs have been added to the workforce in the past year, the national income continues to strengthen from robust terms of trade, and there was a very solid investment pipeline, particularly in the resources sector.
'All this underscores the need for a very strong and tight fiscal policy and the return to surplus,'' he said.
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