NorthConnex promise delivered in a budget that lays foundations for a strong and prosperous economy with less debt

Paul Fletcher MP, Federal Member for Bradfield said today that the Abbott Government’s first Budget is laying the foundations for a strong and prosperous economy with less debt.

“At the election, the Coalition made the solemn promise to get the Budget back under control, as well as scrap the Carbon Tax, end the waste, stop the boats and build the roads of the 21st century such as the NorthConnex Project.  This Budget keeps that promise”, said Mr Fletcher.

“The Budget is part of the Abbott Government’s Economic Action Strategy to build a strong, prosperous economy for a safe, secure Australia.

“The Government has made the difficult but necessary decisions to put the Budget on a more sustainable footing so that we can all share in prosperity in the future.

“Labor ran up five record deficits and left $123 billion in future deficits.  If we took no action, debt would have hit $667 billion.  Every month, the government is paying $1 billion in interest costs on Labor’s debt.  

“Because of this Budget, Labor’s deficits have been reduced by $43 billion and debt is forecast to be about $275 billion lower in a decade.

The Budget includes:

• $405 million committed to the construction of the NorthConnex project linking the M2 & M1 including $134 million allocated in the 2014/2015 financial year as part of Australia’s biggest infrastructure programme - $50 billion in transport investment by 2019-20
• Creating the world’s biggest medical research endowment fund - the $20 billion Medical Research Future Fund.  It will find the cures of the future and be funded by the health reforms;
• Requiring young people who can work to be earning, learning or participating in Work for the Dole;
• Providing stronger incentives to businesses to hire older workers - businesses will receive up to $10,000 for employing workers older than 50 who have been on income support payments including the disability support pension for more than 6 months;
• Reforming the Age Pension to make it more sustainable – that includes gradually increasing the Age Pension age to 70 by 1 July 2035;
• Freezing politicians’ pay and ending the life-time gold pass;
• Introducing a three-year Temporary Budget Repair Levy – payable, from July, by individuals with a taxable income above $180,000 at a rate of two per cent. The Levy will ensure those on a higher income contribute to the Budget repair. 

Mr Fletcher said the Government is honouring its commitment to reduce the overall tax burden – so that families can plan their future and get ahead.

“The commitment to the NorthConnex project – including $134 million of spending in the 2014/15 financial year - will mean that families in Bradfield will spend less time in traffic along Pennant Hills Road and the Pacific Highway.

“This record roads Budget will, in part, be funded by the change in fuel excise.  The change will cost about 40 cents a week, depending how far you travel.  The increase in fuel excise will be directed towards road funding.   

Mr Fletcher said medical research will benefit from the changes to the Medicare Co-payment.  Prevention is always better than cure – and this will become a $20 billion fund that helps secure in our future health.

“To support the sustainability of the health system into the future and drive further medical innovation, the Government will establish the Medical Research Future Fund as of 1 January 2015”.

“Medical research has a key role in improving health outcomes while at the same time making our health system sustainable in the decades ahead. Health and medical research, in our institutes, universities and increasingly, in our wards and practices, must be seen as part of the solution.

 “The key goal of the Budget is to strengthen the economy – because when you strengthen the economy, small businesses succeed, families have less pressure on them and jobs are created”, Mr Fletcher concluded.