Collect information and review material from the media about the details of the Budget. Also investigate the likely impact of this Budget on the Australian economy for the next financial year and beyond.
need to be good at and also what society wants them to be good at."
A changed university experience awaits new students. HECS fees can rise by up to 30 per cent for students beginning their courses in 2005 and full-fee places for local undergraduates in public universities will double.
The flip side is that universities will enter a new world of competition by being free to draw maximum economic return from their academic strengths.
Sustaining first rate health services
¡P $42 billion to the State and Territory governments for public hospitals under the new Australian Health Care Agreements.
¡P $917 million over 5 years to make health care more affordable, particularly for concession cardholders and veterans.
Effect on economy
Although the budget is trying to maintain the current standard of health care system, it become more and more difficult to maintain the current standard in the future because of the aging population of Australia. Government can¡¦t continue forever to keep on allocating a higher and higher proportion of money into the health care system, otherwise it could disrupt the normal operation of the economy. In light of this, the government is trying to encourage private medical insurance by subsidising taxpayers on insurance premium.
Participation to address disadvantage
¡P $160 million over 4 years to provide better employment outcomes for people with disabilities.
Effect on economy
The budget takes the view that those who are disabled or disadvantaged are encouraged to be placed in the workforce. It helps partially to reduce the reliance on welfare benefit payments and also help Australia¡¦s economy to some extent.
Developing industry and innovation
¡P $150 million over 5 years to encourage additional investment in R&D in the pharmaceutical industry.
¡P $379 million in 2006-07 to facilitate forward planning for longer-term research and development projects.
Effect on economy
The amount of budget spends on research and development is in no way compared to that of United States. In addition, for quite a lot of years, ¡§brain drain¡¨ has been happening. A lot of talented Australians scientists have moved to United States in search of better job prospect. Therefore the current level of budget could be viewed as maintaining the current level of progression in technology and pharmaceutical research. The impact on economy is minimal unless there is substantial breakthrough research.
Support for rural and regional Australia
¡P $740 million over 3 years in the drought relief to provide direct financial assistance, personal counselling, employment services, as well as tax relief.
Effect on economy
The budget on drought relief is to restore back the international competitiveness on crop production. It may take a few years for the farmers to restore their full capacity of production and help Australia¡¦s export and contribute to the balance of payments.
Energy reform for the future
¡P Reforms to the fuel excise system
¡P To promote long-term sustainability and support production of cleaner fuels.
Effect on economy
Since the reforms [next page]