Treasurer Scott Morrison will hand down his third federal budget tomorrow evening. A number of new projects and initiatives have already been revealed.
This report by takes a look at some of the places government funds might be headed in the next financial year.
Ahead of Treasurer Scott Morrison's third federal budget, a flurry of new initiatives has been announced.
Reports indicate income-tax cuts are on the way for people in the bottom two tax brackets earning up to $87,000 a year. Changes to higher tax brackets are projected from 2024, and the tax bracket for those earning more than $180,000 a year is also expected to be raised over time.
Finance Minister Mathias Cormann says low- and middle income-earners are likely to spend much of any tax cut that comes their way and spending would likely add to employment.
"The Government has made very clear that, when it comes to personal income-tax cuts, our first priority is to provide tax relief to lower- and middle-income earners. That is obviously good for them, and it's good for the economy. The detail and the specifics will be part of the Budget on Tuesday,” he said.
But Scott Morrison says the size of the tax cut will not be "mammoth," only what the budget can afford. Speaking to the Nine Network, he has defended the decision to reduce taxes at a time when the budget is still in deficit.
“Now we think it's important to have two rails: Keep control on taxes, keep control on spending. And that's how you get yourself on a sustainable path to a budget balance that can guarantee the essential services that Australians rely on, because it delivers and supports a stronger economy," said Mr Morrison.
Opposition Treasury spokesman Chris Bowen has told the ABC the cuts must not come at the cost of a healthy budget surplus.
The mental-health service Lifeline is being given a $34 million ($33.8 million) cash injection to boost its telephone service. The funding from the Turnbull Government in this year's budget will help the charity answer more calls and support the training of staff.
Making the announcement in a video posted on social media, Prime Minister Malcolm Turnbull says the funding will support important work. Mr Turnbull said: “Thousands of volunteers taking calls from people who are lonely, who are in crisis, who are thinking of taking their own lives. And their love changes and saves lives. But they need more support. They need better computers, better systems. And so we're providing $34 million of additional funding to support Lifeline."
Meanwhile, sufferers of spinal muscular atrophy will have access to a life-saving drug for a fraction of the cost.
Spinraza, which slows progression of the disease and can significantly improve motor function, will be available on the Pharmaceutical Benefits Scheme (PBS) from June for all patients under age 18. A year's supply of the drug was estimated to have cost more than $370,000, but it will now be around $40 ($39.50) per script.Health Minister Greg Hunt says the funding will save lives.
A tobacco taskforce is also being set up. It will include new powers for the tax office to charge tobacco duties and a new requirement to obtain a permit to import tobacco. Revenue Minister Kelly O'Dwyer says it is going to raise millions of dollars in proceeds.
Deputy Prime Minister Michael McCormack says the budget will be a responsible one, despite saying last month it would contain "plenty of goodies." Mr McCormack says, while the budget will deliver a number of vital projects across the country, the Government will not let spending spiral out of control. He said: “It's going to be a budget which is going to provide the sort of infrastructure that Australians need, want, demand and expect, whilst at the same time living within our means. It's important that we continue to live within our means, to make sure that we're fiscally responsible, and that's what we're doing.”
The 2018 federal budget will be handed down on Tuesday evening at 8:30pm Australian Eastern Standard Time.
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