Here are the key points outlined in the mid-year economic and fiscal outlook (MYEFO), released by Treasurer Wayne Swan on Monday.
The treasurer said:
-Worsening global conditions have cut almost $22 billion from tax receipts over the forward estimates and $4 billion alone in 2012/13.
-The government has cut its forecast surplus for this financial year to $1.1 billion, from $1.5 billion. But it has raised the surplus for 2013/14 to $2.2 billion, from $2 billion.
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-The domestic growth forecast has been cut since the May budget. Real gross domestic product (GDP) is now forecast to grow at around trend at three per cent in 2012/13 and 2013/14. This is a downgrade of one quarter of percentage point since the May budget.
-The unemployment rate is expected to remain low at five per cent in 2012/13 and 2013/14.
NEW MEASURES
The federal government will raise $16.4 billion in new savings over four years, in the following ways:
-The baby bonus will be cut from $5000 to $3000 for second and subsequent children from mid-2013.
-The federal government will cut another $700 million from private health insurance (PHI). From April 2014 "the premium to which the rebate is applied will move in line with CPI or the commercial premium increase, whichever is lower", Treasurer Swan said.
-Removal of concessional treatment for 'in-house' fringe benefits if they are accessed through a salary sacrifice arrangement.
-Changes to the way large companies pay their tax, moving from quarterly to monthly instalments.
-Increase in payments of about $1.2 billion for immigration-related programs in 2012/13 - "mainly owing" to higher-than-expected numbers of boat arrivals.
