As I’ve previously blogged, the Australian Government have been unable to get a path back to surplus, despite the mining boon and previously strong economic growth.
So yesterday’s Budget saw $43 billion of spending cuts and tax increases on the back of a $13 billion deficit for the upcoming year. This is what happens when you let spending get out of control.
Some of the major announcements:
- Scrapping family tax benefits and bonuses $4.9b
- A 15% surtax on super fund earnings over $100,000 a year
It will be interesting to compare and contrast the NZ and Australian budgets on Thursday.