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The federal budget comes out tomorrow, newbie'loth pack' please put it away

Source: xkb.com.au
[Economic News]     05 Oct 2020
tomorrow's federal budget is one of the most important government options in 75 years, but let's face it -- not everyone is excited about the basic cash balance, fiscal strategy, and iron ore prices. But given our 90-year economic recession and the 100-year new crown pandemic, the budget is expected to be particularly relevant to your daily life, and now is the best time to learn the basics of the...
The federal budget comes out tomorrow, newbie'loth pack' please put it away

 

tomorrow's federal budget is one of the most important government options in 75 years, but let's face it -- not everyone is excited about the basic cash balance, fiscal strategy, and iron ore prices.

But given our 90-year economic recession and the 100-year new crown pandemic, the budget is expected to be particularly relevant to your daily life, and now is the best time to learn the basics of the budget.

Please keep reading until tomorrow's highlight in order to speed up the progress.


What is the federal budget?

Every year government spend hundreds of billions of dollars to keep itself and the country running.

The money ranges from benefits and support, such as job seekers and youth benefits, to projects managed by government, and funds for new projects such as health insurance, schools, army and roads, infrastructure, etc.

It is therefore self-evident that it must somehow explain the use of the money.

Every 12 months or so, government have to allocate the money collected to the expenditure items and determine the rate of revenue collection through taxes.

It did so in the federal budget.

Budgets are often the platform for announcing major policy changes, such as tax cuts and new initiatives.

This also includes a economic outlook -- a detailed analysis of government overall expenditure and income, showing whether the budget is in deficit (expenditure is greater than income) or surplus (income is greater than expenditure).

The deficit or surplus has an impact on Australia's debt, that is, the total amount government owe creditor.

The budget not only outlines the fiscal year in which it is prepared, but also forecasts expenditure and income for the next four years.


Why is it important?

The federal budget comes out tomorrow, newbie'loth pack' please put it away

 

A budget proposal provided an opportunity for government to set out its priorities and explain how it wished to achieve them.

Changes that have an impact on you, such as new taxes, payments and government preferences, are usually announced in the budget.

But the budget doesn't just affect individuals.

This gives government the opportunity to influence the economic. through change policies

Eventually, if you have paid any taxes, levies, or fees to the federal government, this is your chance to see where your money will go.

Similarly, if you receive any benefits or support payments, this is your opportunity to see if these will be affected.


When will the budget be announced?

The federal budget is usually announced on the second Tuesday of May.

Well, May was months ago, why should we talk about it in October?

Put your thoughts into May this year, and you will remember that it was a rather uncertain time.

Most people in the world are hard to predict what will happen in the next two weeks, let alone in the forward estimate period (a statement of the budget, referring to the next four fiscal years).

For that reason, government postponed the full federal budget until tomorrow in order to stabilize the global situation, even a little.

We did get an update on national finances in July, which shows the largest budget deficit in modern Australian history.

That was before the outbreak of additional pressure on economic in victoria and increased demand for support such as JobKeeper, which means the figures revealed in the full budget could be even worse.


What should I look for?

The federal budget comes out tomorrow, newbie'loth pack' please put it away

 

There are several volumes of the budget, or & quot; budget documents & quot;, printed hundreds of pages if you are interested in further understanding.

Budget document #1 gives a brief overview (only 10 chapters! There are key breakdowns, such as basic cash balances (i.e. whether the budget is a deficit or a surplus), debt, and government assessments of economic tracking.

If you want to know how much money is spent on specific measures, you will find it in the budget document No .2, which breaks down government expected sources of funding and the expenditure initiatives it expects to fund.

This is also where you will find any new announcements.

All these measures are arranged in the forward budget with tables showing expenditure or income for each fiscal year.

Expenditure and revenue measures are very helpful to segment by sector, which means you don't have to get involved in civil affairs through the health sector.

Additional published documents detail how much the federal fiscal relationship -- includes to be allocated to the states as revenue from taxes on goods and services -- as well as funding for public services.

or if it all sounds like a lot (trust us, it is), we will bring you all the key details on budget night.

So, see you tomorrow!

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