Economy Howard Government

julie bishop served minister education, science , training 2006. final costello budget contained number of education initiatives.

the howard government s fourth term took place during period of exceptional economic growth , prosperity. during term on 855,000 new jobs created, unemployment declined on 4 percent , inflation remained within reserve bank of australia s (rba s) target range of 2–3 percent due in part changes made way in rate calculated, creating appearance of improvement.. government completed repaying commonwealth s debt , recorded surpluses in each of budgets during term. australia s strong economic performance largely attributed reforms made both hawke-keating government , howard government , growth in world economy on same period. growth in australia s productivity did slow during howard government s fourth term, however, , many areas of australia s infrastructure reached capacity , required reform. howard government s ability drive these reforms limited lack of working relationship many of state , territory governments.

the rba s use of monetary policy significant issue during government s fourth term. key element of government s campaign in 2004 election argument coalition government keep interest rates low. result, alp able use rba s 6 interest rate increases on term criticise government. interest rate increases , strong growth in house prices during period contributed housing affordability reaching all-time low.

changes fiscal policy introduced in 2004–05 budget included baby bonus , increased tax benefits families children, , lower income tax rates australians. family benefits introduced howard government led middle-income households becoming largest single group of social welfare recipients. superannuation system changed in 2007 allow people withdraw superannuation tax-free after reached age of 60 , increase incentives semi-retired people work part-time. once commonwealth debt repaid, government used financial surplus establish future fund pay superannuation liabilities , higher education endowment fund established in 2006–07 budget. government negotiated , signed several free trade agreements between 2004 , 2007, including 1 united states had been negotiated during third term.

on 15 september 2005, senate passed telstra (transition full private ownership) bill 2005. first sale 1 third sale had been in 1997, under telstra (dilution of public ownership).

the howard government s 12th , final budget brought down treasurer costello in may 2007. in budget address, costello told parliament australia had recorded longest economic expansion in history , had unemployment @ 30-year low:

in 2007 budget, costello announced number of measures aimed @ education sector: including higher education endowment fund, literacy , numeracy initiatives schools, , measures support vocational education , training , higher education. higher education endowment fund had provision tax concessions private donors , offered $5 billion of seed money pay university buildings , research facilities. government promised income tax cuts , range of welfare , aged care adjustments. amidst severe drought, government promised $10 billion national plan water security , measures drought assistance. issue of climate change received attention, including solar panel rebate scheme , increased funds research , technology.

negotiations japan-australia economic partnership agreement commenced howard government in 2007, , concluded under abbott government in 2014.