PRIME MINISTER
STATEMENT BY THE PRIME MINISTER, THE HON. P. J. RATING
THE BUDGET
Following meetings today with WA ( Green Senators and
Democrat Leader Kernot and Senator Harradine the
Government has reached agreement to secure passage of the
second tranche of the wholesale sa. les tax increase
announced in the Budget.
The measures meet the concerns of the minor parties in
the Senate which have sought increased assistance for low
income earners and the unemployed to offset announced
increases in the wholesale sales tax.
The measures include an increase in the Additional Family
Payment, further assistance to the unemployed, and
changes to the HECS scheme and Emergency Relief Program.
The Additional Family Payment was raised in three
discussions independent of each other by Green Senators,
Senator Kernot immediately post-Budget and by Senator
Harradine who has argued a case fcr single-income
famil ies.
It also proposed to limit the increase in excise on
kerosene, fuel. oil and heating oil to the 3 cents a litre
that has applied since Budget night. To alleviate the
higher transport costs to Tasmanian industry, Senator
Harradine has urged that * the* Government inc-rease the
Tasmanian Freight Equalisation Scheme and provide
compensation for the Bass Strait passenger service. The
Government has agreed to such an increase.
The necessary legislation for the proposed changes will
be introduced over -the -next few wceks.
The total cost of the measures shown on the attachment is
$ 17 million in this year, rising to $ 144 million by 1996-
97.
The Treasurer and 1[ believe the agreed changes are a
reasonable compromise which do no: undermine the
Government's medium-term debt reduction strategy and are
consistent with the intentions of the Government for
future Budgets.
Even with the proposed changes thi? prospective deficit
remains around 1 per cent of GDP tgor 1996/ 97.
Today's agreement is a welcome development for the
economy. It will help restore confidence to industry and
provide an impetus to the encouraging signs of recovery
already evident in the economy.
CANBERRA October 19, 1993
SUPPLEMENTARY BUDGET MEASURES
Measure Cost
The Additional Family Payment ( AFP) will be increased by 1993-94
$ 1.00 a week per child from 1 January 1995. ( AFP is paid to $ 45m 1994-95
over 800,000 low income families who generaly will not $ 92m 1995-96
benefit from the tax cuts, although the AFP is indexed for $ 95m 1996-97
increases in the CPT.)
From March 1994, Job Search Allowance ( JSA) for single $ 10m 1993-94
adults will be increased by $ 3 a week. An increase of $ 3 a $ 31 m 1994-95
week for single adults on the Newstart Allowance, which is $ 28m 1995-96
paid to those unemployed 12 months or more, was $ 26m 1996-97
announced in the Budget. ( JSA for single adulLs is $ 15 less
than the single pension; JSA for married couplk. s is the same
as the pension).
HECs charges for students taking more than thc. designated $ 1 m 1993-94
duration of their course of study will not be inc'eased as had $ 3m 1994-95
been announced in the Budget. $ 4m 1995-96
$ 4m 1996-97
The Emergency Relief Program which provides grants to $ 2m 1993-94
non-government community welfare agencies fcr short-term $ 2m 1994-95
emergency assistance will be expanded. $ 2m 1995-96
$ 2m 1996-97
The increase in excise on kerosene, fuel oil and . ieating oil 2m 1993-94
will be limited to the 3 cpl increase that has operated since $ 12m 1994-95
Budget night. $ 14m 1995-96
1996-97
In order to alleviate the transport costs to Tasmanian 2m 1993-94
industry, the Tasmanian freight Equalisation Scheme will be 2m 1994-95
enhanced. In addition, a subsidy will be introduced to offset 2m 1995-96
the impact of the higher excise on fuel oil for the Spirit of 2m 1996-97
Tasmania. I