1. Policy Assembly Federal Report The Hon Peter Costello MP Treasurer 13th June 2003

2. Defence spending 10 12 14 16 18 2000-012001-022002-032003-042004-052005-062006-07 10 12 14 16 18 Underlying funding $billion 2003-04 Budget (excluding Iraq) International operations (including East Timor, Afghanistan & Iraq) Enhanced ADF capabilities White Paper $billion

3. Higher education spending 3.0 3.5 4.0 4.5 5.0 5.5 6.0 1999-20002001-022003-042005-062007-082009-10 3.0 3.5 4.0 4.5 5.0 5.5 6.0 Baseline funding Additional funding Estimates $billion

4. Health spending 0 10 20 30 40 1996-971998-992000-012002-032004-052006-07 0 10 20 30 40 Other Australian Health Care Agreements Pharmaceutical Benefits Scheme Medicare Benefits Schedule $billion

5. Ability to redirect spending 0 2 4 6 8 10 12 14 16 18 1995-96 0 2 4 6 8 10 12 14 16 18 Assistance to Families & Children Hospitals & Schools Assistance to Families & Children Public Debt Interest Hospitals & Schools 2003-04 Public Debt Interest $billion

6. International budget comparisons -8 -7 -6 -5 -4 -3 -2 0 1 Japan United States OECD European Union Australia -8 -7 -6 -5 -4 -3 -2 0 1 02-03 03-04 Per cent of GDP

7. Commonwealth net debt -5 0 5 10 15 20 1974-751978-791982-831986-871990-911994-951998-992002-032006-07 -5 0 5 10 15 20 ProjectionsEstimates Outcomes Per cent of GDP

8. International net debt comparisons 0 10 20 30 40 50 60 70 80 90 GermanyTotal OECDEuropean Union JapanUnited States Australia 0 10 20 30 40 50 60 70 80 90 Decade from 1995 to 2004 Per cent of GDP

9. Personal tax cuts 0 2 4 6 8 10 12 14 16 18 10,00020,00030,00040,00050,00060,00070,000 Taxpayer's annual income ($) 0 100 200 300 400 500 600 700 Tax savings - $ per year (RHS) Tax cut per year (%)Tax cut per year ($) Tax savings - percentage reduction (LHS) Large percentage reduction for taxpayers with incomes between $20,000 and $27,475

10. Queensland, WA, Tasmania, ACT and NT are now better off than they would have been had tax reform not been implemented by the Government in 2000 $32 billion GST to the States