Understanding Australian Fiscal Policy

To set the interest rates for the Reserve Bank of Australia

To outline government revenue and expenditure for the coming financial year

To determine the value of the Australian dollar

To regulate the stock market

Goods and Services Tax (GST)

Company tax

Personal income tax

Excise duty

1 January to 31 December

1 April to 31 March

1 July to 30 June

1 September to 31 August

Personal income tax

Company tax

Goods and Services Tax (GST)

Capital gains tax

Consumer Price Index (CPI)

Gross Domestic Product (GDP)

Unemployment rate

Balance of payments

Budget surplus

Budget deficit

No change to the budget

Balanced budget

Changing the cash rate

Adjusting government spending

Regulating the share market

Setting the exchange rate

To reduce inflation

To increase economic growth and reduce unemployment

To decrease government debt

To increase interest rates

Increased consumer spending

Decreased disposable income

Lower unemployment

Higher economic growth

It means the government is spending more than it earns

It can help reduce government debt

It always leads to higher inflation

It increases the money supply in the economy