- Budget deficit blows out by $26bn over four years since May budget
- The deficit for 2015/16 is expected to be $37.4bn versus $35.1bn at time of May budget. For 2016/17, it is forecast to be $33.7bn compared with a previous $25.8bn.
- Growth forecasts downgraded to 2.5% in 2015/16 (from 2.75% in May budget) and 2.75% in 2016/17 (from 3.25%).
- Assumed growth in 2017/18 and 2018/19 is now 3% not 3.5%.
- Iron ore price now assumed to be $39 a tonne rather than $48 in the May budget.
- Return to surplus now projected one year later in 2020-21 with total deficits of $108bn over four years from 2015/16 to 2019/20.
- Net debt higher and peaking one year later – in 2017-18.
- Unemployment is forecast to fall to 6% for 2015/16, down from 6.5% in the may budget. The forecast for 2016/17 is 6% compared with a previous forecast of 6.25%.
- Key savings include $1.3bn from welfare fraud by data matching between the tax office and Centrelink, $650m by ending bulk-billing incentives for pathology and cutting other bulk-billing incentives and $534m from payments to aged care providers.
- These offset spending including the $1.1bn innovation statement, another $400m for asylum seekers awaiting processing in Australia, $909m to pay for the special intake of Syrian refugees and an extra $300m for roads.
