Treasurer Scott Morrison’s first budget today comes just days out from Prime Minister Malcolm Turnbull firing the starting gun for a July 2 election.
But Mr Morrison insists the focus tonight will be on jobs and growth rather than being a typical pre-election budget.
He also insisted his first budget will be a national economic plan for the country with a focus on jobs and growth.
Substantial tax changes
Prime minister Malcolm Turnbull said yesterday that the federal budget would have “substantial tax changes”, with some relief in the offing for the average income earners.
It is expected to make changes to middle-income tax brackets to fend off bracket creep impacting thousands of workers over the next couple of years.
Superannuation tax concessions are expected to be reined in for the rich, while there will be money for infrastructure, schools and health.
There are expected to be planned cuts to the company tax rate, funded by a further crackdown on multinational tax dodgers.
This is what can be expected
- A reduction in the overall tax burden.
- Modest improvement in the budget bottom line.
- "Sensible" tax changes to prevent bracket creep for people earning over $80,000.
- Confirmation the budget repair levy on high-income earners will end on July 1, 2017.
- $5 billion over four years for a subsidised public dental scheme.
- $2.9 billion extra for public hospitals, stemming from COAG agreement.
- $1.2 billion extra from 2018 for schools aimed at literacy and numeracy checks.
- $230 million cyber security strategy.
- $118 million over two years to support disabled children in schools.
- $100 million domestic violence campaign.
- $21 million in health care for chronic conditions.
- Brought-forward upgrade of Adelaide-Tarcoola rail line.
- New drugs on the Pharmaceutical Benefits Scheme.
- Extra aged-care places.
- $1.7 billion for the Sydney Metro project.
- $167.3 million for a regional road freight corridor in NSW.
- $98.4 million to increase the capacity of Sydney's rail network.
- $78.3 million for Parramatta light rail.
- $60 million for "smart motorways" in NSW.
- $52.2 million to clear NSW road pinch points.
- $2.4 billion for Victorian infrastructure including $877.5 million for the Melbourne Metro tunnel and Murray Basin rail, plus money for Monash Freeway, Western Ring Road, regional roads.
- $750.8 million for WA infrastructure including the Forrestfield-Airport link and $260.8 million for the Perth freight link.
- Funding for Queensland's Ipswich Motorway.
- Timetable for phased-in cut to the company tax rate of 30 per cent.
- Further crackdown on multinational tax dodgers.
- $150 million security package including heavily armed security specialists guarding police buildings.
- $5 million annual cut to ABC
