1. Treasurer’s National Press Club Address 11 May 2005

2. Underlying cash balance

3. Budget balances in OECD and Australia

4. Net debt and net interest payments

5. $5.7 billion of interest savings 0 5 10 15 20 25 30 1996-97 0 5 10 15 20 25 30 Hospitals & schools Assistance to families with children Assistance to families with children Hospitals & schools Public debt interest 2005-06 Public debt interest $billion

6. Future Fund

7. Unemployment rate

8. Inflation

9. 2004-05 Tax scale Income range ($) Tax rate % 0 – 6,0000 6,001 – 21,60017 21,601 – 58,00030 58,001 – 70,00042 70,000 +47 2005-06 Tax scale Income range ($) Tax rate % 0 – 6,0000 6,001 – 21,60015 21,601 – 63,00030 63,001 – 95,00042 95,001 +47 2006-07 Tax scale Income range ($) Tax rate % 0 – 6,0000 6,001 – 21,60015 21,601 – 70,00030 70,001 – 125,00042 125,001 +47 Personal income tax scales

10. Tax savings by income level

11. Increasing Australia’s international competitiveness 0 2 4 6 8 10 12 Slovak Rep Denmark Ireland BelgiumHungary Luxembourg Australia NZ Iceland Netherlands Germany UK Sweden Mexico Czech Rep Finland Australia Greece Canada Austria Norway Spain Italy France Poland Switzerland Korea Japan Portugal USA Turkey 0 10 20 30 40 50 60 70 80 Australia (1 July 2006) Australia (now) Top threshold, multiple of the average production wage (bars)Top rate, per cent (dots) Top rate Top threshold

12. Personal tax cuts over time 0 10 20 30 40 50 102030405060708090100110120 Income ($'000) 0 10 20 30 40 50 TNTS tax cuts2003-04 tax cuts2004-05 tax cuts2005-06 tax cuts2006-07 tax cuts Per cent reduction

13. Income support recipients

14. Elements of Welfare to Work reform

15. Spending to help people into work

16. Child care places