ADIA is the peak business organisation representing manufacturers and suppliers of dental products. Our vision is for an industry that empowers oral health professionals to advance the health and wellbeing of all Australians...................... — ADIA Strategic Plan

2016 Budget — Government financial outlook

The 2016 Australian Government Budget seeks to strengthen Australia's finances as the economy continues its transition from the largest mining investment boom in our history to broader‑based growth. It is an instalment in a longer term process where continued discipline will be required to continue to consolidate the budget and return to surplus.

While receipts continue to increase, tax receipts have been impacted by lower than expected nominal GDP, which has been weighed down, by weaker wages and inflation.

Notwithstanding these pressures, the Government remains fully committed to its fiscal strategy of returning the budget to a sustainable surplus by controlling expenditure growth and redirecting government spending to boost productivity and workforce participation.

The underlying cash balance is expected to improve over the forward estimates and into the medium term. The deficit is expected to fall from $37.1 billion (2.2 per cent of GDP) in 2016‑17 to $6.0 billion (0.3 per cent of GDP) in 2019‑20.

The underlying cash balance is projected to continue to improve over the medium term, reaching a surplus of around 0.2 per cent of GDP by 2020‑21, before peaking at around 0.3 per cent of GDP the following year. It is projected to fall gradually over the rest of the medium term.

Actual Estimates Projections Total
FY2014-15 FY2015-16 FY2016-17 FY2017-18 FY2018-19 FY2019-20
Receipts $378.3Bil $388.0Bil $411.3Bil $437.4Bil $469.9Bil $500.7Bil $1,819.3Bil
.....% GDP 23.5% 23.5% 23.9% 24.2% 24.8% 25.1% N/A
Payments $412.1Bil $425.0Bil $445.0Bil $459.9Bil $481.5Bil $502.6Bil $1,889.0Bil
.....% GDP 25.6% 25.8% 25.8% 25.5% 25.4% $25.2% N/A
.....Future Fund Earnings $4.1Bil $3.0Bil $3.3Bil $3.6Bil $3.8Bil $4.1Bil $14.9Bil
Underlying Cash Balance -$37.9Bil -$39.9Bil -$37.1Bil -$26.1Bil -$15.4Bil -$6.0Bil -$84.6Bil
.....% GDP 2.4% -2.4% -2.2% -1.4% -0.8% -0.3%

The average annual pace of fiscal consolidation across the forward estimates is 0.4 per cent of GDP, consistent with the average pace of consolidation in the 2015‑16 Mid‑Year Economic and Fiscal Outlook (MYEFO).

This Budget demonstrates the Government's fiscal discipline. The overall impact of new policy decisions in this Budget is an improvement to the bottom line of $1.7 billion over four years from 2016‑17 to 2019‑20, with all increases in payments offset by savings in payments, rather than increased taxes or higher debt.

Real payments growth until 2019‑20 is expected to be 1.9 per cent per annum on average, broadly consistent with the 2015‑16 MYEFO.

Payments as a proportion of GDP are forecast to fall to 25.2 per cent by the end of the forward estimates period.

This update was issued on 3 May 2016 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy (including passage of the supporting legislation through the parliament) and also compliance obligations. It is recommended that expert advice be sought before taking action based upon the information presented here.

Member Engagement —

ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to ensure that the initiatives within the 2016 Australian Government budget support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-BAC Business Affairs Committee.

Further Information —

To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at Alternatively, you can contact the Association via email at or by telephone on 1300 943 094.

This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

A.. A D I A . .S T R A T E G I C . .A L L I A N C E S

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