The task of reforming the economy to meet identified long‑term challenges is ongoing. The 2007‑08 Budget builds on Australia's sound economic and fiscal position by continuing to invest in our growth capacity.
A high quality and responsive education system is vital to boosting workforce participation and productivity. This budget includes a $5 billion endowment for Australia's universities and a further $3.5 billion to promote flexibility and diversity in the higher education sector, increase assistance for vocational education and training students and support high quality teaching in Australian schools.
The Government is also providing significant additional investment in transport infrastructure and initiatives to encourage innovation and improve links between Australian businesses and global markets.
These policies build on reforms already introduced to boost productivity, such as the new workplace relations system, WorkChoices, which has added flexibility and choice to Australia's labour market, and the Government's recent $837 million investment in Skills for the Future.
Building on previous tax reforms, the Government will further reduce personal
income tax by increasing tax thresholds and the Low Income Tax Offset.
An increase in the net migration intake will also assist in meeting challenges from the ageing of the population.
Achieving sustainable economic growth also requires that appropriate environmental conditions are maintained as natural resources are essential inputs into Australia's productive capacity. The Government is taking further action, including by investing $10 billion over 10 years in a comprehensive plan to better allocate scarce water resources.
Fiscal sustainability will be improved by policies that enhance participation and productivity
7 2007‑08 Budget Overview