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The hidden cuts and spending in Budget 2017

THE government is trumpeting its big ticket items in the Budget, but there are more cuts and spending it would like to stay quiet.

AUSTRALIA:    Budget Buzzwords Explained... With Animals   Various

TREASURER Scott Morrison said the Budget was “fair and responsible”, but there are still plenty of hidden cuts and spending in there.

Higher tax on rollies

If you’re a smoker who rolls your own cigarettes, you will soon be paying more for the pleasure.

The tax on roll your own tobacco and cigars will be increased to be in line with normal cigarettes. This is expected to reap the government $360 million over four years.

Licence fees

Broadcast licence fees, datacasting charges and existing apparatus licence fees will be cut from this year, at a cost to revenue of $414.5 million over four years.

A support package will be set up for the small number of licensees who would otherwise be worse off following the changes at a cost of $24.8 million.

Office downsizing

Things may be a little more cramped for Australian Electoral Commission office workers in the Northern Territory, with the government expecting to save $8.4 million in 2017-18 from downsizing the office and delivering some electoral services from Queensland.

You’ll soon pay more if you roll your own smokes.
You’ll soon pay more if you roll your own smokes.

The arts

Spending on arts and cultural heritage will decrease by 2.6 per cent in real terms from 2016-17 to 2017-18, and by 12 per cent in real terms over the period 2017-18 to 2020-21.

This includes programs that support funding for the arts and cultural institutions, reflecting the implementation of efficiencies and arts-related savings measures from 2014-15 and 2015-16.

Crackdown on pollies’ expenses

An independent body to audit and report on politicians’ work expenses will be set up at a cost of $13.8 million over the next four years.

The same-sex marriage plebiscite

Despite failing to get the plan for a national vote on same-sex marriage through the Senate, the Government still hasn’t dropped its plan for a plebiscite.

Tucked away under “fiscal risks”, it says it “remains committed to a plebiscite in relation to same-sex marriage, despite the Senate not supporting the Plebiscite (Same-Sex Marriage) Bill 2016”, promising to “provide $170 million” for the vote “as soon as the necessary legislation is enacted by the Parliament.”

Ban on cosmetic testing on animals

The testing of products on animals will be banned from the end of next year, while the government will ban the use of new data obtained from animal testing from July 1, 2018, at a cost of $2.1 million.

Chemical warfare medicine

The Government will spend $85.4 million over three years from 2017-18 on replenishing the National Medical Stockpile’s holdings of medicines, vaccines and antidotes.

The stockpile is a strategic reserve for use in response to a chemical, biological, radiological or nuclear attack.

The reliability of the NBN will be monitored.
The reliability of the NBN will be monitored.

Keeping an eye on the NBN

A $7 million Broadband Performance Monitoring and Reporting Program will spend the next four years collecting and publishing information comparing the speed and reliability of services delivered over the National Broadband Network.

It will be recovered from an increase to the carrier licence charge to broadband service providers — which will no doubt be passed straight on to you.

Supporting Aussie victims of terrorism

Australian victims of overseas terrorism will be given $2.3 million for incidents dating back to 2001 that have not previously been recognised, including some in Afghanistan, Pakistan, India, the Philippines, Tunisia and the Middle East.

Commonwealth Games

The Australian Sports Commission will receive $15.5 million to support more than 2000 aspiring and high performance athletes in the lead-up to the 2018 Gold Coast Commonwealth Games.

There’ll also be extra funding for the staging of the Games, including $34.2 million for Australian Defence Force security and $11.7 million for related services — on top of the $158.5 million provided in the 2014-15 Budget.

Free willy

Whales and dolphins that get stranded on beaches or caught up in nets will be a helping hand from the Government to the tune of $200,000 in 2016-17. The money will go towards providing equipment and training for rescuers.

Beefing up cyber security

Looks like the government is hoping avoid another cyber attack on the Bureau of Meteorology’s ICT systems and business processes. It is providing money to improve the system’s security and resilience but has not published the amount of money it is spending due to ‘commercial-in-confidence sensitivities’.

It will also provide $10.7 million over four years from 2017-18 to establish the Cyber Security Advisory Office to help manage cyber risks.

Almost $100 million will go towards fighting IS ‘diplomatically’. Picture Gary Ramage
Almost $100 million will go towards fighting IS ‘diplomatically’. Picture Gary Ramage

A helping hand for Mal

Those working in the Department of the Prime Minister and Cabinet will get $20 million over four years from 2017-18 to help support its “delivery of critical policy advice” and to “assist the government in meeting its objectives”.

The department will also get $23.5 million over four years to support the delivery of the National Cities Agenda.

But it’s not just the PM’s department that’s getting funding. Treasury colleagues will also get $29.5 million over two years from 2017-18 to better support the department’s function including for “taxation policy” and “forecasting of revenue”.

Getting solar off the ground in South Australia

The Government will also make available up to $110 million for an equity investment, if

required, to fast-track construction of a solar thermal project in Port Augusta, South Australia.

Fighting the Islamic State, diplomatically

Funding of $92.9 million will go towards Australia’s diplomatic engagement and security arrangements in Iraq including operating costs and security for the Australian embassy in Baghdad. This will support efforts to combat Islamic State, also known as ISIS, in Iraq and Syria.

Another $138.3 million over two years from 2017-18 will go towards security in Afghanistan and the embassy in Kabul.

The government is also providing extra money over four years to support the operations of the Australian Secret Intelligence Services but the amount is not published due to national security reasons.

Weird sports on TV

The government is forking out an extra $30 million over four years to “support the broadcast of under-represented sports on subscription television, including women’s sports, niche sports, and sports with a high level of community involvement and participation”, and an extra $6 million to support the development of Australian film and TV content.

We’re sending $26.1 million into space, ramping up our optical astronomy. Picture: European Space Agency /D. Ducros/AFP
We’re sending $26.1 million into space, ramping up our optical astronomy. Picture: European Space Agency /D. Ducros/AFP

Restarting an aluminium smelter

The government will put $30 million in 2016-17 towards the Portland Aluminium Smelter joint venture to help restart the smelter in Victoria after it shut down during a power outage on December 1, 2016. The grant is conditional on the smelter running at 90 per cent of its pre-power outage level until June 30, 2021.

Looking to the stars

Australia will be able to ramp up its research and commercial capabilities in optical astronomy, including operation and ownership of the Anglo-Australian Telescope, thanks to funding of $26.1 million over four years from 2017-18, and a forecast $120 million over 11 years.

This will allow Australia to become a strategic partner with the European Southern Observatory for 10 years from 2018. The partnership will provide Australian researchers access to world leading infrastructure including the La Silla and Paranal Observatories in Chile.

This measure will be partially offset in 2018-19 and 2019-20 by redirecting current funding for the operation of the Australian Astronomical Observatory.

Centenary program

Celebrations for the 100th anniversary of World War I will get an extra $19.6 million in funding over two years from 2017-18.

Extra exhibition space at the Australian War Memorial

The government is providing $5 million to develop a business case for the development of extra exhibition space at the war memorial, including adding an Afghanistan Peacekeeping exhibition.

Read related topics:Scott Morrison

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Original URL: https://www.news.com.au/finance/economy/federal-budget/the-hidden-cuts-and-spending-in-budget-2017/news-story/048f5fb26f8ec9beed5c844ac3776d5a