Economist Chris Richardson says most Australians will have reason to smile after next week's (may 8) federal Budget is revealed.
"They were going to get an increase in the Medicare levy. That's now not going to happen. They weren't going to get a personal income-tax cut. That will happen. And so there will be a bunch of people happy with the good news.“
He says he expects the Government will be able to spend up to $8 billion a year on personal tax cuts, funded by the biggest surge in company-tax revenue in 16 years.
Opposition Leader Bill Shorten says the Government has the wrong priorities, though, and should definitely not be rewarding Australia's banks with a corporate-tax cut.
"It is immoral to give the big banks of Australia a $17 billion tax handout, especially in light of the shocking and predatory revelations of the royal commission that the Turnbull Government never wanted to see exposed."
But Scott Morrison warns Labor does not have a plan for Australia to live within its means.
He says Labor is only interested in higher taxes to fund increased spending.
