Reported leaks from Australia's 2008/09 budget

CANBERRA May 5 (Reuters) - Following is a list of reported leaks of Australia's 2008/09 budget, which is due to be announced by Treasurer Wayne Swan on May 13.

The budget will be the first by Prime Minister Kevin Rudd's centre-left Labor Party, which won power last November after almost 12 years in opposition. Labor last delivered a national budget in 1995.

The Treasury Department's pre-election budget review, released in October, forecast an underlying surplus of A$14.4 billion ($13.6 billion) or 1.3 percent of GDP for 2007/08, and a A$14.3 billion surplus, or 1.2 percent of GDP, for 2008/09.

A Reuters poll of 13 market economists suggests the budget will deliver a record surplus in 2008/09, with a median forecast of A$19 billion. For more double-click on [ID:nSYD243314].

The government has promised to deliver a surplus of at least 1.5 percent of GDP in order to curb inflationary pressures.

Reuters has not verified the accuracy of leaks reported by media.

New items are marked by an asterisk.

SURPLUS/ECONOMY

* Finance Minister Lindsay Tanner said the government would reach its target of A$3 to A$4 billion of annual cuts to outlays.

(Australian Financial Review, May 5)

Budget revenue projections remain volatile, and there will be no pleasant revenue surprises, with higher revenue from booming commodity prices unlikely to offset falls from other sectors.

(Treasurer Wayne Swan, ABC Television, May 4)

The government expects the surplus for 2008/09 to reach 1.7 to 1.8 percent of GDP, or A$20 to A$21.5 billion.

(Sydney Morning Herald, May 2)

The inflation-fighting budget surplus will exceed A$17 billion, but will not push far beyond the target for fear of stalling economic growth.

(The Australian, May 2)

The government is on track to deliver a record surplus above A$17 billion for 2007/08, compared to the October forecast of A$14.4 billion.

(Australian Financial Review, April 29)

Treasurer Wayne Swan shifts the budget goalposts, saying the budget will not only fight inflation, but also safeguard the economy from slowing world growth and the threat of rising prices in the developing world.

(Australian Financial Review, Swan interview, April 28)

Government to deliver a surplus of at least 1.5 percent of gross domestic product, or nearly A$18 billion, as part of a five-point plan to fight rising inflation.

(Prime Minister Kevin Rudd, January 21).

TAX

The government is set to impose a means test on the baby bonus to stop high income earners from receiving the cash payment, which will increase to A$5,000 from July 1 and which is paid on the birth of each new baby.

(Sydney Morning Herald, May 3)

The government will close a tax loophole on the taxable value of shares and share rights for corporate executives, saving about A$77 million.

(Treasurer Wayne Swan, ABC Radio, May 1)

Excise on pre-mixed alcohol drinks to increase 70 percent, to about A$1.30, effective April 27, to raise about A$500 million a year.

(Health Minister Nicola Roxon, Nine Television, April 27)

Senior ministers are considering plans to deliver direct payments into worker pension funds, and a new multi-billion investment fund to bankroll infrastructure projects.

(The Age, March 26).

Government promises to deliver its election commitment of personal tax cuts from July 1, 2008, worth A$31 billion over three years, saying the tax reforms are an incentive which will add 2.5 million additional work hours to the economy each week.

(Treasurer Wayne Swan business speech, Feb. 26)

Tax cut laws pass the House of Representatives on March 12, but remain under consideration in the upper house Senate. The tax cuts will cost A$7.1 billion in 2008/09, A$9.8 billion in 2009/10, and A$13.9 billion in 2010/11.

DEFENCE

The Defence Department is considering closing surplus military bases as the government seeks to slash costs, axing more than 1,000 civilian in the May 13 budget.

(Australian Financial Review, May 2)

HEALTH

Government promises carers and pensioners will be no worse off under the budget changes.

(Prime Minister Kevin Rudd, March 10)

Media reports the government would scrap a A$1,600 carers bonus, replacing it with a A$500 allowance.

(The Australian, March 7)

ENVIRONMENT

A$1.5 billion extra for water desalination projects, water security and A$500 rebates to households to install rainwater tanks.

(Climate Change and Water Minister Penny Wong, April 29)

Australia to appoint an ambassador for whaling, with significant funding to be included in the budget to allow the ambassador to be a roaming international envoy against whaling.

(The West Australian, May 2)

HOUSING

Tax credits of A$6,000 per dwelling to corporate investors to encourage investment funds to build affordable housing projects.

(Australian Financial Review, Feb. 29)

ENERGY

* The government is believed to have earmarked A$275 million for six new clean coal projects, and extra money for renewable technology, in the May budget.

(The Australian, May 5)

A A$2,000 subsidy to covert cars to run on LPG (liquefied petroleum gas) will be retained, but is likely to be halved, with Rudd to revisit the issue after industry lobbying.

(Sydney's Daily Telegraph, May 2)

A$40 million worth of annual grants to promote the production and use of ethanol may be scrapped in the May 13 budget.

(The Australian, May 1)

A A$2,000 subsidy to help people convert their cars to run on LPG (liquefied petroleum gas) to be scrapped, saving about A$400 million.

(Sydney's Daily Telegraph, April 4) ($1=A$1.07) (Reporting by James Grubel)