By way of comparison Australia has debt of 23% this year, rising to 25% over the next two years before reducing.
- Higher education funding will be cut by 20%. Graduates will be required to pay back their student loans sooner and the interest rate will rise.
- Foreign aid will be cut.
- Petrol tax will increase by 4 cents. High income earners (+$180k) will pay a 2% surcharge “budget repair levy”.
- The health budget will be cut by $10b.
- Welfare benefits will be frozen.
- The age at which people can claim superannuation will progressively rise from 65 to 70 and the eligibility test will become tougher.
- The company tax rate will be cut by 1.5% to 28.5% (28% in NZ). However big businesses will be required to pay a 1.5% levy to fund the government’s paid parental leave scheme.
- The unemployment rate is expected to rise to 6.25% (in New Zealand it is expected to fall to 4.4%).