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Oil Report

HIGHLIGHTS - Australia releases 2021/22 budget bill and economic forecasts

Following are the highlights of Australia’s 2021/22 budget and the Treasury’s key economic forecasts released on Tuesday. For a story on the budget, click FORECASTS SURPLUS/DEFICIT New (Pct of GDP) Previous (Pct of GDP) (In A$ bln) f’cast f’cast 2021/22 -106.6 (-5.0) -108.5 (-5.3) 2022/23 -99.3 (-4.6) -66.0 (-3.0) 2023/24 -79.5 (-3.5) 2024/25 -57.0 (-2.4) GDP GROWTH 2021/22 2022/23 2023/24 2024/25 (In pct) New Old New Old New Old New Old

4.25 3.50 2.50 2.50 2.25 2.75 2.50 - UNEMPLOYMENT 2021/22 2022/23 2023/24 2024/25 (In pct) New Old New Old New Old New Old

5.0 5.5 4.75 5.25 4.5 5.25 4.5 - CPI INFLATION 2021/22 2022/23 2023/24 2024/25 (In pct) New Old New Old New Old New Old

1.75 1.50 2.25 2.5 - 2.5 - REVENUE AND EXPENDITURE Total 2021/22 revenues seen at A$496.6 billion, 23.3% of GDP before rising to A$578 billion in 2024/25. Expenses are seen falling by 12.3% in 2021/22 to A$589.3 billion reflecting the cessation of the government’s temporary welfare measures. As a percentage of GDP, total expenses are estimated to reach 32% in 2020/21 and then decline over the forward estimates to 26.4% in 2024/25. DEBT Net debt is expected to rise to 34.2% of GDP at June 2022 and peak at 40.9% of GDP at June 2025, before decreasing to 37% of GDP at June 2032. Gross debt is projected to surpass A$1 trillion at 2022/23 from A$829 billion at 2020/21. INITIATIVES COVID-RELATED

* A further A$1.9 bln allocated for vaccine rollout

* Budget provides A$1.5 billion for COVID-related health services, including testing and tracing, respiratory clinics and telehealth. TAX

* Tax cuts for over 10 million low- and middle-income earners - individuals will receive up to A$1,080 and couples will get A$2,160

HOUSING

* Government to help another 10,000 first-home buyers build a new home with a 5% deposit

* Some 10,000 single parents will be able to purchase a home with a 2% deposit

* Increasing the amount that can be released under the First Home Super Saver Scheme to A$50,000 from A$30,000

* To allow those aged over 60 to contribute up to A$300,000 to their superannuation fund if they downsize their home, freeing up more housing stock for younger families. BUSINESS

* Budget provides a further A$2.1 billion in targeted support for aviation, tourism, arts and international education providers

* Tax relief for around 1,000 small brewers and distillers

* Doubled its commitment to the “JobTrainer” fund to help create new apprenticeships and traineeships

* Investing A$1.2 billion to build digital infrastructure, skills and cybersecurity

* Launching a new patent box, under which income earned from new patents developed in Australia will be taxed at a concessional 17% rate. The patent box will apply to the medical and biotech sectors WOMEN WELFARE & SAFETY

* A$1.7 billion investment in childcare to help boost workforce participation and women’s economic security

* New A$1.1 billion funding for women’s safety which would deliver more emergency accommodation, legal assistance, counseling and financial support.

* To remove A$450 monthly minimum income threshold for superannuation guarantee to help improve economic security for women INFRASTRUCTURE

* Announces A$15 billion in additional infrastructure commitments including for a new intermodal terminal in Melbourne and a new airport in New South Wales WELFARE

* To spend A$13.2 billion over 4 years for National Disability Insurance Scheme

* To commit A$17.7 billion in new aged care funding

* A A$2.3 billion commitment to mental health care and suicide prevention

* To commit A$2 billion to fund preschools

* To provide more than A$19 billion in funding for universities in 2021/22 NATURAL DISASTERS

* A A$10 billion government guarantee to make insurance more affordable in Northern Australia

* More than A$600 million for community and household projects to mitigate the impact of natural disasters

* A$170 million to boost internet and mobile coverage in regional Australia, particularly in bushfire-prone areas CLIMATE CHANGE

* The Budget provides over A$480 million in new funding for the environment, including A$100 million to protect oceans

* Investing A$1.6 billion to fund priority technologies, including clean hydrogen and energy storage. NATIONAL SECURITY

* The Budget provides A$1.9 billion over the decade to strengthen national security, law enforcement and intelligence agencies.

Reporting by Swati Pandey; Editing by Sam Holmes Keywords: AUSTRALIA BUDGET/HIGHLIGHTS

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