CANBERRA, May 12 (Reuters) - Australian media are reporting on likely measures to be announced in Tuesday's national budget, which is shaping up as the most crucial in many years as the economy edges towards recession.
Following is a list of media reports and comments on the budget. Reuters has not verified the accuracy of the reports.
New items are marked by an asterisk.
For Reuters budget coverage, click on [ID:nSYD171203]
ECONOMY/DEFICIT
* The budget will forecast a record deficit of A$58 billion ($44 billion) for next financial year while also claiming the government's stimulus packages will save 200,000 people from losing jobs. The budget will predict unemployment, currently 5.4 percent, to reach 8.5 percent next year, the equivalent of 1 million people out of work. (Sydney Morning Herald, May 12)
* The budget will predict a huge A$58 billion deficit in the new financial year, a record 4.9 percent of GDP and higher than in any post-war recession.
(The Age, May 12)
Tax revenue will fall A$22 billion ($16.6 billion) this year with the budget to remain deeply in deficit for many years, according to Access Economics. The deficit in 2009-10 will be about A$48 billion.
(The Australian, May 11)
Budget to be in deficit for six years until 2015/16.
(Australian Broadcasting Corp & Channel 10 TV, May 5)
Budget deficit for 2009-10 tipped at A$68 billion.
(Australian Financial Review, May 4)
A deficit next financial year of between A$50 billion and A$70 billion is expected.
(The Age, May 4)
Australia's coming budget to forecast a near 50 percent jump in unemployment to one million people next year and a 0.5 percent contraction in the economy over 2009-10.
(The Australian, May 1)
The budget faces a A$50 billion revenue shortfall next year and a deficit as large as A$70 billion, with a A$200 billion fall in revenue forecast for the next four years, up from February's forecast of A$115 billion, and with unemployment to top 8 percent.
(Australian Financial Review, May 1)
The government will release long-term revenue and spending projections beyond the usual four years in an effort to underline its commitment to return to a surplus after what will be record deficits for the next few years.
(Australian Financial Review, April 24)
ENVIRONMENT
* A$1 billion-plus investment in solar and other clean energy to spearhead budget plans to make Australia a global leader in "green" technology.
(Herald Sun, May 12)
PENSION FUNDS
1 million low- and middle-income earners will have their superannuation co-contributions cut. From July 1, the government co-contribution of A$1.50 for every dollar that workers earning less than A$60,000 a year salary-sacrifice into their super, will be reduced to A$1. The maximum contribution of A$1,500 a year will be reduced to A$1,000, saving $1.4 billion over four years.
(Sydney Morning Herald, May 11)
Government to halve the amount of pension fund contributions eligible for the 15 percent tax rate, to A$25,000 from A$50,000 a year for people under 50, and to A$50,000 from A$100,000 for people over 50.
(Sydney's Daily Telegraph, May 6)
DEFENCE
Budget to contain the first round of massive defence spending cuts designed to shave off A$20.6 billion over 20 years, including A$5 billion by 2013.
(Daily Telegraph, May 8)
Border-protection authorities to get extra funding of between A$200 million and A$500 million for a suite of anti-people-smuggling measures.
(The Australian, May 7)
INCOME TAX
Prime Minister Kevin Rudd will not renege on promised tax cuts for middle and high-income earners, but has left open means-testing of 50 percent childcare subsidies and rebates on 30 percent of the cost of private health insurance.
(The Australian, May 5)
PARENTAL LEAVE
Paid parental leave from January 2011 for families whose primary carer earns less than A$150,000 a year. The scheme will cost taxpayers A$260 million a year, with 18 weeks' leave paid at the federal minimum wage of about A$544 a week.
(The Australian, May 11)
IMMIGRATION
Skilled migration intake to be slashed by about 7,000 people to 108,000. A total reduction of 25,000 places since March will constitute a 20 percent cut to the program, the deepest since last 1991 recession.
(Sydney Morning Herald, May 8)
TRAINING
About 135,000 parents and young people will be stripped of welfare payments unless teenagers are in some form of education or training.
(Sydney Morning Herald, May 1)
HOME-BUYER ASSISTANCE
The government's first-home buyers grant will survive the budget process, but in a changed form favouring new building.
(Daily Telegraph, April 24)
PENSIONS
The A$30-a-week pension increase, forecast to cost A$3.86 billion a year, will be the biggest new budget expense.
(Sydney Morning Herald, May 11)
The government is expected to issue long-term investment bonds, with returns linked to inflation, to help self-funded retirees sustain their finances in retirement.
(The Australian, April 1)
For a related story, double click on [ID:nSYD404082].
HEALTH
* Government to cut taxpayer-funded 30 percent private health insurance rebate from July 2010. Single people earning more than A$74,000 a year and couples on more than A$150,000 will be affected. If the rich refuse to take out private cover, their state Medicare surcharge will rise to 1.5 percent, from 1 percent.
(The Australian, May 8)
Government to target savings of about A$440 million over four years through a cap on payments to medical specialists.
(Sydney Morning Herald, May 7)
The cost of having a baby will rise by up to A$2,000 under a crackdown on the Medicare Safety Net.
(Sydney's Daily Telegraph, April 1)
The rich to face higher private health costs and the loss of lucrative superannuation tax breaks under proposed budget reforms. The government wants to cut the cost of A$3.5 billion in private health insurance rebates through a means test and scrapping ancillary items.
(Herald Sun, April 23)
"BABY BONUS"
Stay-at-home mothers will continue to receive the A$5,000 baby bonus. Recipients of parental leave scheme will not be eligible to receive the baby bonus or family tax benefit part B as well.
(The Australian, May 11)
CLOSING TAX LOOPHOLES
Charities face a crackdown on payment of fringe benefits tax. Entertainment in the not-for-profit sector is currently exempted, with between 17,000 and 26,000 employees of charities and hospitals spending an average of about A$4,500 a year each.
(The Australian, May 7)
The budget to crack down on tax breaks used by the wealthy, including abolition of a loophole allowing hobby farms, holiday homes and lifestyle assets to be claimed as tax deductions.
(Daily Telegraph, April 22)
INFRASTRUCTURE
Government to spend A$25 billion ($18.9 billion) on 12 major infrastucture road, rail and port projects in the budget to help shield the country from recession impacts.
(The Australian, May 8)
The government to unveil a third economic stimulus package in the budget, comprising major infrastructure spending on road and rail, irrigation infrastructure and recycling measures. The package will likely not include more cash handouts.
(Australian Financial Review, April 22)
ALCOHOL/TOBACCO TAXES
Brewers, winemakers and tobacco companies are bracing for excise increases adding up to A$2.50 to a packet of cigarettes and 15 cents for a draught beer in budget "sin taxes" to raise up to A$1 billion. Tobacco companies expect a 5 to 10 percent hike in tobacco excise, currently A$0.26 cents a stick.
(The Australian, May 7)
ARTS
Budget to fund a dedicated children's channel on state broadcaster ABC at a cost of A$20 million.
(The Australian, April 23)
For a table of the latest government forecasts, double click on [ID:nSYD229372].
Double click on [ID:nSYD427842] to see the latest Reuters coverage of the political issues facing Australia's centre-left Labor government. ($1=1.305 Australian Dollars) (Reporting by Rob Taylor)