The federal government has lowered its forecast for growth and will make more than 16 billion dollars in new savings over four years to return the budget to surplus.
Treasurer Wayne Swan has released an update to the May 2012/13 budget, laying out changes to the baby bonus and the way big companies pay tax as well as more reforms to private health insurance.
Mr Swan says while Australia's economic fundamentals remain strong, worsening global conditions have cut almost 22 billion dollars from tax receipts over the forward estimates and four billion dollars alone in 2012/13.
He says the government's responded to the more challenging global outlook by delivering new savings over the forward estimates that strike the right balance, minimising any impact on the economy and on the community's most vulnerable.
