Yet another (big) budget downgrade...... UBS view

Kevin Rudd last week announced the pre-election budget update.  Here is an extract from UBS economic team that provides a summary of this announcement.

Key new measures (over 4 years) are:

Savings:

Tobacco tax $5.8bn

PBS price changes $2.0bn

FBT on cars $1.8bn

Other ETS saves $2.1bn

Public sector efficiency $1.8bn

Delayed Foreign aid $1.0bn

Higher tax compliance $0.8bn

Bank deposit levy $0.7bn

Superannuation changes $0.6bn

 

Spending:

New PBSA listings $1.4bn

PNG aid and resettlement $0.5bn

Non-claw back of carbon comp $3-4bn

Deffered self-education changes $0.3bn

 

 

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