Hey everyone, how many budget initiatives should we remember for each area of AS policy (ie. 1 for spending on infrastructure, 1 for R&D, etc.) and can you have the same initiative for two areas of AS Policy? Thanks.
Hey Jmac, I would suggest knowing atleast 1 initiative for each area of AS policy. In recent exams VCAA has been asking questions about specific policies, instead of letting you pick one. Here's some of the initiatives I remember for each policy;
Immigration - 108,682 skilled migrants that pass a 'points test,' based on their ability to contribute to the Australian economy are let into the country. This policy mostly targets rural areas of Australia that are in shortage of skilled workers. (increase availability of resources).
Tax - You can use the accelerated depreciation allowance where assets under $30,000 can be written off as a tax liability for businesses, or (this is the one I use) you can use the elimination of the 37% and the 32.5% tax bracket and the creation and expansion of a 30% tax bracket for income earners of $37,000 - $200,000. This tax bracket change aims to eliminate the effect of 'bracket creep,' and encourages workers to take on more responsibilities (increase efficiency).
Welfare - Jobs for family package, government is investing $30 billion into the quality and quantity of childcare, as well as offering mothers up to an 80% subsidy (on a sliding scale) for putting their children in childcare. This incentives mothers to re-enter the workforce as they .... (increases availability of resources).
Budgetary initiativesInfrastructure - Government has pledged to invest $100 billion in infrastructure over the next 10 years, initiatives including but not limited to the construction of $2 billion Melbourne - Geelong rail and the $5 billion Melbourne - Melbourne airport rail link. This increases mobilisation of resources .... (increases efficiency)
Training and Education - Youth jobs PaTH program. Young individuals at risk of long term welfare dependence are Prepared (trained), Trailed (interned) and Hired (mostly through wage subsidies provided to firms). (Increased availability of resources).
Research and Development - Businesses engaging in R+D are allowed to inflate their expenses on R+D by 143.5% in order to reduce the amount of company tax they pay on their profits. Incentives R+D, if successful ...... (increases efficiency).
Subsidies - (Not too sure about this one I don't usually use it, recheck with your teacher.) Export development grants are provided to firms engaging in overseas expansion/advertising, providing these businesses with up to a 50% subsidy on their costs for overseas expansion, provided they spend atleast $15,000. This allows ....... (reducing costs of production).