Introduction
At 7.30pm on 13 May 2008, the Treasurer, Wayne Swan, delivered the 2008-09 Commonwealth Budget, the first for the Rudd Labor Government. The Treasurer is forecasting a cash surplus for the 2008-09 year of $21.7 billion (being 1.8% of GDP), with the fiscal or accrual surplus estimated at $23.1 billion (being 1.9% of GDP).There are few tax surprises in the Budget, details either having been comprehensively leaked prior to Budget night or, in relation to a handful of issues, merely representing the implementation of the new Government's election promises (including the tax cuts, which are already progressing through Parliament). Many of the changes are relatively insignificant, designed to raise relatively small amounts of revenue contributing to the overall surplus. It is to be hoped that the review of the tax system, formally announced by the Government tonight, will be bolder in its recommendations than the Government has been in this Budget.
One election commitment that the Government is proceeding with which will disappoint Members is the amendment to the definition of "family" in the family trust election provisions. It is hard to believe the Government's statement that it will raise $24 million over the 4 year forward estimates period is either realistic or that it justifies this negative change.
A summary of the Budget details are set out below.
