The Turnbull government will reportedly spruik $16 billion in savings over four years in the federal budget, as it prepares for an all-but-certain double dissolution election on July 2.
Sky News reported that the government would pursue changes to superannuation concessions and multinational tax avoidance to reach the savings figure.
Presenter Paul Murray, who is close to Coalition figures, claimed to have seen the script of a government television advertisement that would run immediately after the budget.
A spokesman for Treasurer Scott Morrison told Fairfax Media the government would not respond to speculative reports and the budget would be handed down on May 3.
The leaked advertisement script would seem to back up a report in The Australian Financial Review on Tuesday that Mr Morrison will reduce the amount of debt that multinational corporations can load on to their Australian operations to 50 per cent from 60 per cent. The hit to so-called thin capitalisation would discourage companies from shifting tax-deductible debt to Australian shores. A Senate inquiry into corporate tax avoidance is due to hand its final report to the government this week.
Previous research suggests savings of $16 billion would be towards the lower end of what is possible if wide-ranging tax reform were on the table. In February, a report by the Grattan Institute estimated the government could save $16 billion just by reducing to $11,000 the amount of pre-tax income Australians can salary sacrifice into superannuation each year.
