The 2008 Federal Budget, the first Federal Labor Government budget in 13 years, has benefited from tax revenues created by the global resources boom. The Government has handed down a larger than expected $21.7 billion surplus for 2008/09, representing a significant 1.8 per cent of GDP.
The surpluses arising from 2007/08 and 2008/09 will be used to create three ‘nation building’ funds, namely:
- Building Australia Fund ($20b) for investment in national transport and communications infrastructure
- Education Investment Fund ($11b) for capital expenditure in Australia's higher education institutions
- Health and Hospitals Fund ($10b) to finance the renewal and refurbishment of the nation's hospitals and health facilities and fund major medical research projects.
Click here for Zurich's summary of the budget changes.
