States will receive billions in federal government tax incentives if they privatise assets to fast-track the construction of productivity-boosting infrastructure projects under a deal reached between state and Commonwealth treasurers. The arrangement will be of most benefit to NSW and Queensland which own billions in unsold assets, such as power utilities. Financial Review
The Federal Government's move to raise Australia's national debt limit from $300 billion to $500 billion does not signal a debt ceiling crisis in Australia, but it does signify that the current debt limit will be exceeded later this year. Allowing that to happen without prior legislative authority would create uncertainty.
However, Mr Hockey overreached when he compared that prospect with recent events in the United States. Given the fundamental differences in the two political systems, the "tremendous uncertainty" experienced in the US would not be mirrored here
ABC
Two of Prime Minister Tony Abbott's most high-profile ministers claimed thousands of dollars in taxpayer entitlements for attending the wedding of close friend and Sydney shock jock Michael Smith. Fairfax
The 2012-13 budget deficit has ended up slightly smaller than Labor forecast in the May budget – but Treasurer Joe Hockey says prospects for 2013-14 are looking even worse now than when the election was called. Mr Hockey said confidence is returning to the economy, but the government will face a challenge to sustain growth as the mining investment boom deflates – and hinted that it is looking at ways to stimulate infrastructure spending. Fairfax
Mr Barnett, whose state lost its AAA credit rating on Wednesday, says revenue from the GST is not growing fast enough to fund basic services like health and education.He says while Mr Abbott made a political promise not to lift the GST, he thinks the Prime Minister will have little choice but to address the issue. ABC
