Mental health tipped to get $2bn boost

A MASSIVE increase in mental health services is expected to be unveiled in tomorrow night's budget.

A MASSIVE increase in mental health services is expected to be unveiled in tomorrow night's budget, with some tipping $2 billion over four years, as Labor moves to trump Tony Abbott's $1.5bn policy.

The package would sweeten the $277 million announced by the government during the election campaign and could be used as leverage to increase pressure on the opposition, which will again oppose moves to save $1.9bn by means-testing the 30 per cent private health insurance rebate.

Mental health funding is one of several election commitments that will need to be funded in the budget if Labor is to avoid charges that it is walking away from promises. While mental health will get a big boost, there is speculation that the $427m four-hour emergency department treatment target in hospitals could be delayed.

Julia Gillard last week confirmed that key election promises in the education and family spheres would be met.

These included a bonus payment for the nation's best teachers, increases of as much as $4200 a year in family tax benefits for parents with teenagers who stay in school and the extension of education tax rebates to cover school uniforms for families who qualify for Family Tax Benefit A.

But speculation is mounting that the promised $222m boost to the school chaplaincy program could be delayed as the government seeks to rein in spending.

Key infrastructure promises are also set to appear in the budget papers but their funding has not been promised until 2014.

The government promised to contribute $724m for a 12.6km rail line connecting the Redcliffe Peninsula to Petrie in Brisbane, $2.1bn towards a 14km rail link in Sydney's west between Parramatta and Epping and $257m towards the upgrade of Princess Highway West in Victoria.

The Sydney inclusion will come despite NSW Premier Barry O'Farrell's argument that the funds should be directed to other transport projects.

The budget will contain updated numbers for receipts from the minerals resources rent tax but they will not contain allocations to the National Broadband Network. Because the NBN is seen as an investment, its contributions to the construction do not appear on the budget bottom line.

Wayne Swan again confirmed yesterday that the budget would not contain figures on Labor's proposed carbon tax. He said details would be released after the scheme had been finalised.