Collect information and review material from the media about the details of the Budget. Also investigate the likely impact of this Budget on the Australian economy for the next financial year and beyond.

Australia¡¦s Budget 2003-04 has started on 1st July 2003 effectively. It is broadly divided into a number of categories.

¡P Economic outlook
¡P Fiscal outlook
¡P Personal income tax
¡P Defence
¡P Education
¡P Health service
¡P The disadvantage
¡P Research and development
¡P Support for rural and regional Australia
¡P Energy reform for the future


Economic outlook

¡P The Australian economy is expected to enjoy solid growth despite the global economy is slowing down, in particular the US economy.
¡P Growth in 2003-04 is forecast to be solid at 3.25%
¡P A moderate inflation of 2.25%
¡P The unemployment rate should be steady at around 6%

Effect on economy
As of 3rd July 2003, US has cut their interest rate and it is expected that Australia may follow suit. With a low interest rate environment, businesses and homebuyers can continue to access to cheap finance. Therefore business should experie...