In her speech to the Australia-Israel Chamber of Commerce last year, Julia Gillard contrasted “the problems of Europe” with Australia's “position of strength in the world economy” (Editorial, Feb 2 2012, The Australian). However, in the editorial, the author identified several “fiscal policy weaknesses” of the Australian federal government. Fully examine the fiscal challenges facing Australia in the current domestic and international economic environments. Study the 2013 Federal Budget, and critically discuss if the Budget contains any effective strategies that address these challenges.



Guide to topic 2

There are three aspects to the question: theory, application and policy. Firstly, you must show that you understand the theory, so a thorough reading of chapters 24, 25, 27 & 28 of the 6th or 7th edition of the textbook (or chapters 22, 24, 26 & 27 of the 5th edition) is required. Then you must do some research. This will entail reference to government publications (e.g. RBA, Treasury), journals and newspapers (e.g. AFR, The Australian) on more detailed analysis of the current issues you identified. As a starting point, read the editorial: “The Prime Minister's plan to build a new economy” (The Australian February 2, 2012). This article is available on the Blackboard unit site.

Title of Essay Provide a title for your essay that indicates what you are trying to argue.

Word limit: 1200 with 20% tolerance. (Tables and reference lists are not in the word count.)