SO, Treasurer Wayne Swan stuck to his guns and conjured up a Budget surplus.
Whether or not his resolve to get back in the black will hurt the economy remains to be seen but there is good and bad news in this Budget depending on your life situation.
Here's a look at some of the key announcements that will affect you and your hip pocket:
If you are an average tax payer…
The tax-free threshold has tripled from $6000 to $18,200, reducing the tax burden on low-income earners. So, for a person earning $50,000 a year that will mean an extra $2,053 in the pocket for 2012-13.
Low-income earners (up to $37,000) will also get a boost of $500 to their Superannuation savings.
If you have children…
Throw out the shoebox of receipts, as the Education Tax Refund has been replaced by the Schoolkids Bonus - a twice-yearly payment into your bank account. Parents will receive payments of $820 a year for each teenager they have at high school, and $410 for primary students.
From 1 July 2013 the Family Tax Benefit Part A will increase for all eligible families. Families with one child will get an extra $300 a year, and an extra $600 for families with two or more children.
The Government is investing an additional $225.1 million over four years to help 130,000 Australians with childcare costs back into the workforce. Through the Jobs, Education and Training Child Care Fee Assistance it will help eligible parents on income support by paying the difference of the cost of childcare and the amount of childcare benefits they receive.
If you are an unemployed parent…
Single unemployed parents will have their parenting support payments removed when their youngest child turns eight (compared with 16 now).
At present, single mothers receive $648.50 a fortnight until their youngest child turns 16. The new plan, which comes into effect in July 2013, will end the payments when the child turns eight and shift them on to the Newstart Allowance.
For partnered parents the $442 fortnightly income support payment will now end when the youngest child turns six.
If you are a non-resident worker…
It's all bad news. Firstly, most of you will lose the Living Away from Home Allowance (see below), and from 1 July all non-resident workers will have to pay a blanket 32.5 per cent tax rate – regardless of whether they're low income earners.
If you receive income support…
You will receive an additional yearly allowance of $210 if single and $350 per couple. This will kick in from March 2013 and applies to recipients of Youth Allowance, Newstart Allowance and Parenting Payment.
If you earn more than $300,000…
There'll be no more squirrelling money into Superannuation at the low tax rate of 15 per cent. Now very high-income earners will have to pay 30 per cent tax on Super contributions. This will impact 128,000 Australians.
Also, they're scrapping the Low Income Tax offset for non-work income of minors. So this means high-income earners can no longer dodge the ATO by income splitting with their children to avoid tax. Tut tut.
If you're about to receive a Golden Handshake…
No more large tax concessions for generous executive salary packages as the Government targets the Employment Termination Payment offset. The tax concession will only remain for genuine redundancies or if you lose your job due to illness or disability.
If you're a mature age worker…
Firstly, the Government is phasing out the mature age worker tax offset (MAWTO), which was designed to encourage participation. Not applicable to those who are 55 or over on 1 July 2012.
On top of that, if you have a spouse dependent, the dependency offsets have been reformed.
And, if you're planning to retire in a few years – think again. The Age Pension age for men and women will be increased by six months every two years, commencing from 1 July 2017 and reaching 67 on 1 July 2023.
If you're a motorist…
The unintended incentive to drive your vehicle further than you need to in order to obtain a larger tax concession is gone. The reformed Fringe Benefits Tax treatment of cars will mean a flat rate by 1 April 2014 – no matter how far you drive.
If you're a smoker…
The days of bringing home 200 cheap cigarettes from overseas are over. You're now only allowed to bring home 50 cigarettes duty-free.
If you're a small business owner…
Unfortunately, the one per cent company tax cut that was rumoured for small businesses didn't materialise. Mr Swan blamed the Opposition for standing in his way.
Instead he pledged $3.7 billion in other small business tax breaks. From 1 July all small businesses can immediately write off each and every business asset they buy for less than $6500 and write off the first $5000 for cars or utes. Also, a single depreciation pool for assets costing $6500 or more - which should be some help.
The "loss carry-backs" system will only benefit a small percentage of Australia's 2.7 million small businesses. The new system will allow small business to offset losses made this year against profits made in previous years.
At present , small businesses can only carry their losses forward to be offset against future income and future profits. The new scheme will be capped at $1 million of losses with a maximum benefit to any firm of $300,000. Also, the Entrepreneurs Tax Offset has been scrapped.
If you have elderly parents…
The aged care system will provide 40,000 more home care packages over the next 5 years as part of a $3.7 billion package of reforms of Australia's aged care system.
If you're a student…
$54 million has been pledged to encourage more students to study Maths and Science. The 2012 academic year has seen undergraduate places fully uncapped at all public universities for the first time driving an estimated $5.2 billion increase above previous funding levels to universities between 2010 and 2015.
If you have a disability…
The budget committed $1 billion to the 400,000 Australians living with a significant and permanent disability through the National Disability Insurance Scheme. 10,000 disabled Australians will benefit from 1 July 2013.
If you're on the public dental waiting list…
You're in luck. One of the big-spending measures in this Budget is a $515 million injection to reduce the public dental waiting list, which stands at 400,000.
If you're unemployed…
No more long overseas trips if you want to keep collecting the dole. People on welfare will have their payments stopped if they go overseas for more than 6 weeks. Before that, the cut-off was 13 weeks.
If Australia is invaded before 2030…
We're in all sorts. The Budget announced the biggest cuts to the military since the end of the Vietnam War with a massive $5.5 billion cut in Defence spending over four years.
But Mr Swan insists the nation will still have the capacity to defend itself. The cuts will also potentially mean widespread redundancies in Defence's civilian workforce.
If you receive LAFHA…
You're not laughing anymore and will have to say cheerio to the lucrative Living-Away-From-Home-Allowance.
The new reforms mean it can only be used for the expenses of people who are legitimately maintaining a second home in addition to their actual home. So, Ireland or England doesn't count as a second home for most people who are here on a working holiday and 457 visas. It was good while it lasted - sorry guys.
If you love natural therapies…
No more freebie crystal therapy or flower essences I'm afraid.
The government will crack down on taxpayers' funds being used to subsidise ''natural therapy'' services which do not present clear evidence they are clinically effective.
Services that are will be ineligible for the health insurance rebate include naturopathy, aromatherapy, ear candling, crystal therapy, flower essences, homeopathy, iridology, kinesiology, reiki and rolfing.
If you're a big business…
The big selling point of the Budget is “sharing the wealth of the mining boom”. So to that end the Government will from 1 July 2012 introduce the Minerals Resource Rent Tax, extend the Petroleum Resource Rent Tax to onshore oil and gas projects and the North West Shelf and last but not least….
…if you're impacted by the Carbon Tax (PS. that's everyone)
It will cost each household an average $9.90 a week. The Government will reimburse you $10.10. Which means everybody will be 20 cents better off a week…
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