There's a warning of sustained deficit growth which will be reflected in the federal budget due to be released May 3, but the federal Treasurer Scott Morrison assures the government has a plan for the economy.
Mr Morrison says the upcoming budget will support growth and jobs, make sustainable changes to the tax system and ensure the government doesn't spend more than it raises
A report by the forecasting agency Deloitte Access Economics suggests budget deficits could blow-out over the next three years of forward estimates.
The report says by 2018-19, Australia's budget deficits are expected to total 129-billion-dollars -- making the government 21-billion-dollars worse-off than predicted.
Analysing Tax Office data, the report found that only the top 10 per cent of income earners receive almost 50 per cent of the tax benefits of negative gearing (a tax concession for real estate investors) and two thirds of all capital gains income.
