K I
ol PRIME MINISTER
STATEMENT BY THE PRIME MINISTER, THE HON. P. J. KEATING,
AND THE TREASURER, THE HON. J. 9. DAWKINS
THE BUDGET
The Government tonight announced key Budget modifications
which meet Caucus concerns and which it believes should
secure passage of the Budget through the Senate.
The changes will address community concerns while
maintaining the Government's overall deficit reduction
sLrategy. The key changes are:
an increase in the rebate for low income earners
from $ 100 to $ 150 each year.
a reduction in the differential between leaded and
unleaded fuel from 5 cents to 2 cents a litre. This
will be achieved by deleting the 3 cent rise in
leaded fuel proposed in the Budget for February
1995. eye tests will continue to be eligible for Medicare
rebates. unused long-service leave lump sum payments accrued
up to August 17, 1993 will continue to attract a
concessional rate of tax. Future long-service leave
lump sum entitlements as well as all unused annual
leave will be taxed as normal income. As announced
in the Budget, existing concessions will remain for
bona fide redundancies, invalidities and approved
early retirement schemes.
In order to off-set the impact of these measures in this
financial year the payment of personal income tax cuts
will be delayed from November I to November 15, thereby
maintaining this yoar's deficit figure at $ 16 billion.
These revisions to the Budget were discussed with
Democrat Leader, Senator Kernot, Green Senators
Chamarette and Margetts and independent Senator
Harradirie.
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In addition to the measures above it was agreed with
Senator Kernot that a working party of Government,
Democrat and Green representatives would be established
to examine ways to reduce atmospheric lead pollution.
It was also agreed with Senator Kernot that in order to
reduce the cost of these measures the remaining four
proposed increases of three percentage points on tobacco
excise would be replaced with four increases of five
percentage points.
The combined effect of these measures will mean that the
prospective addition to the deficit for 1996-97 will be
in the order of $ 380 million.
This will see the projected deficit for 1996-97 outlined
in the 1993-94 Budget Papers rise from 1.1 per cent of
GDP' to 1.2 per cent.-
Following this evening's Caucus discussion it has also
been decided to review implementation issues associated
with the 1992/ 93 Budget decision to assess capital gains
and losses on shares for pensioners.
CAEMM" Auogust 30, 1~ 993
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