..through responsible savings and key investments

The responsible new savings in this Budget are designed to improve fairness in government expenditures and strengthen the integrity of our tax base.

Together with the savings identified in the 2012‑13 Mid‑Year Economic and Fiscal Outlook, these measures ensure we will continue to have strong public finances, a sustainable social safety net and position us to make investments in our key priorities of education, infrastructure and disabilities.

To ensure our key reforms are sustainable, we have focused spending on those who need it most.

Savings for the longer term

This Budget continues the Government's record of savings that provide long term benefits to the budget bottom line.

We are increasing the Medicare levy by half a percentage point to lock in a strong and stable funding stream for DisabilityCare Australia—the most fundamental social policy reform since Medicare.

Loopholes in the corporate tax system are being closed to ensure multinationals and large companies pay their fair share of tax. Shoring up the corporate tax base will contribute to sustainable government finances.

To better target family assistance now Australia has a national Paid Parental Leave scheme, the Baby Bonus will be replaced by an increase to family payment rates for newborns. This and other reforms will better target help to families that need it most.

Following 75 per cent growth in funding for university places since 2007 calender year, we are ensuring sustainability of growth in public funding with a temporary efficiency dividend on universities while helping to meet the costs of the National Plan for School Improvement.

Measures to achieve greater fairness in superannuation tax concessions and ensure they are sustainable for the long term are being introduced.