PEFO sees continued rise in diesel take

Federal Government income from diesel duties expected to rise by $700 million in three years

August 13, 2013

The Federal Government’s annual
diesel duties incomeis expected to rise by $700 million in the next three years, the Pre-election Economic and Fiscal Outlook (PEFO) from the departments of Treasury and Finance reveals.

By 2016-17, cash gained is forecast to hit $9.68 billion, from the $8.98 billion forecast for 2013-14.

Company tax is also
expected to grow in that time, from $69.2 billion to 80.05 billion.

Meanwhile, if Labor is returned to power after the election, the carbon pricing mechanism will bring in $6.47 billion in 2013-14, falling to $2.87 billion the following year with the pledged entry of carbon trading but will then start rising to $4.05 billion in 2016-17.

The Coalition has promised to scrap the carbon tax if elected.

The Government’s plant, equipment and infrastructure assets are also expected to grow steadily, from $55.9 billion to $62.1 billion.

Regarding the Moorebank Intermodal Company, PEFO states that indemnities for board members in the event of civil claims relating to their work and conduct "remain as contingent and unquantifiable liabilities".

As far as the economic outlook at a time of "uncertainty" is concerned, growth is expected to rise from 2.5 percent in 2013-14 to 3 percent in the following three financial years, the document says.

Annual employment growth is put at 1 percent, rising to 1.5 percent in the following three years, while the unemployment rate is forecast to rise from 5.6 percent to 6.25 percent by next June, stay there over two years and then fall to 5 percent.

"While the shift towards higher exports will support growth, the net contribution of the resources sector to real GDP growth will fall," the document says.

"A rebalancing of growth towards the non-resource sectors is needed to deliver sustained economic growth.

"While this transition has commenced, it is now expected to take longer than at Budget.

"Still, sustained low interest rates and the lower Australian dollar are expected to underpin a return to around trend growth in 2014-15."

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