It appears as if this budget is about two things: neutralising Labor’s lines of attack for the election and playing up the government’s economic management credentials.
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Australia’s economy is the world’s 12th largest.
Our economy past year grew by nearly $40 billion and added nearly 300,000 jobs.
The budget is projected to return to balance by 2021. The budget allots considerable portion to the national innovation and science agenda, as well as the previously announced cyber security offensive strategy.
Now that the government has outlined their budget plan, it had us thinking, what would our budget look like for 2016/17 financial year?
Small to medium-sized businesses are the biggest winners from cuts to the corporate tax rate from July 1.
The government will also reduce the annual cap on concessional contributions to $25,000, which Morrison will say will affect 3% of super fund members. The government will also increase access to greater tax concessions for these businesses and CGT concessions for companies with less than $2 million in turnover.
Middle income earners caught a break as the tax threshold rose from $80,000 to $87,000, effective from July 1. Workers now earning A$80,000 or more are now taxed at the second-highest bracket of 32.5 percent but the Treasurer proposed this bracket threshold be lifted to A$87,000.
“We’ll be ensuring that we better target the concessions that are there in superannuation, we’ve said that for some time”, Mr Morrison said.
At the same time we will increase flexibility and choice in superannuation to support how people work and save in our modern economy.
The budget provides A$100 million to Geoscience Australia for mapping mineral, petroleum and groundwater potential in targeted areas across northern Australia and South Australia with the aim of identifying new greenfield sites for future development.
This Budget keeps Australia on a sustainable path to bring the budget back into balance.
The deficit is forecast to narrow gradually from 2.4 percent of GDP in 2015-16 to 0.3 percent in 2019-20.
It is hoped these measures will raise AU$3.9 billion in revenue over four years.
Recent data showed economic growth picked up momentum in the fourth quarter, providing a political boost to the coalition government.
“The idea that you improve the dental health of children by cutting $1 billion and making all the children of Australia have to go through public waiting lists to get dental care support from the government is a dental care hoax”. Do voters trust Labor to deliver a solid economy along with increased social spending, or will they prefer the government’s fiscally conservative approach?
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At such a sensitive time for our transitioning economy none of us can become complacent or make decisions that could put our successful transition at risk. There is too much at stake. “That is not a sustainable plan for Australia, not a plan for jobs and growth. To get the deficit down you’ve got to get your spending down”, Morrison said in a Channel Nine television interview on Sunday.
