• “The 2010 budget delivers a deficit of $40.8 billion, $16.3 billion less than expected one year ago.  This smaller than expected deficit, is a step towards eliminating deficit budgets by 2012-13 and government debt soon after that. 
• “This budget provides a framework of fiscal responsibility and security for regional Australian business. Interest rates will not need to be as high, inflation will be lower and there is the security that the Federal government would be in a position to better respond to any follow-up global slowdown.  This security and responsibility is the biggest contribution of the budget to regional business.
• “Other aspects of this budget that are relevant to regional business and communities are some tax deductions, funding for more trainees and apprentices, infrastructure spending including road and rail and health spending including funding for general practice ‘super clinics’, after hours services, nurses and health records. 
• “It is not clear how this spending will be distributed between the regions and capital cities but the regions should have a significant share, particularly since it is regionally based business that has delivered the additional taxes that have made the smaller than expected deficit possible. 
• “It is the strong performance of the mining industry and to a lesser extent the recovery of agribusiness that has provided jobs and taxes that have underpinned the better than expected budget outcome.  This contribution would suggest that regional Australia should get a significant share of the budget expenditure initiatives in infrastructure, health and skills development.
• “From 1 July 2012, the Federal government will introduce the resource super profits tax. It is reasonable for Australia to secure a fair share of the wealth generated by extracting the non-renewable resources. However, the resource super profits tax appears likely to lead to the cancellation of some marginal projects and hence job losses in regional Australia. It is important for the Australian government to negotiate with mining companies to minimise job losses while obtaining an appropriate return to the Australian people for its resources.

“In summary, the 2010 Budget provides a sound overall policy setting for regional businesses and communities. But in this Budget, regional communities’ contribution to the better than expected budget outcome is not fully acknowledged nor specifically rewarded in the allocation of government expenditure,” Mr Murphy said.