Watch FIFA World Cup 2026™

LIVE, FREE and EXCLUSIVE

Coalition pass up sugar hit for slow food

Malcolm Turnbull is banking on voters rewarding the government for its long-term recipe rather than an immediate sugar hit.

In the 2018 budget, the coalition has laid out a seven-year plan to reduce personal income tax, starting modestly.

At the end of the period 94 per cent of taxpayers will have a marginal tax rate of 32.5 per cent or less.

But the seven-year wait will take a lot of voter patience.

School funding, much criticised by Labor, is talked about in terms of a 10-year needs-based system and hospitals as a five-year agreement with the states and territories.

News that makes sense

Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Road and rail funding is noted in the budget papers as a $75 billion, 10-year "rolling infrastructure plan".

However, there are some shorter-term sweeteners.

Some taxpayers will see an immediate benefit of up to $10.20 a week.

Australia's growing army of small business operators will continue to get targeted tax breaks to help them invest.

Seniors will immediately be able to keep more of what they earn on the side without reducing their pension payments, and release their home equity to meet their retirement needs.

The government says its long-term focus is about what can be "responsibly afforded", while keeping the budget on track to the black.

It's this message the prime minister and Treasurer Scott Morrison will be using as they make their post-budget pitch to the electorate.

However, there is enough ammunition for Labor to keep the coalition on its toes ahead of an election due by May 2019, likely much earlier.

There's the question of whether the government could be more generous to low- income earners, pensioners and welfare recipients, who are struggling right now.

And having ditched a Medicare levy hike to pay for the National Disability Insurance Scheme, the government has resorted to a "trust us" approach to its funding.

Gonski 2.0 will still be a bone of contention, given Labor's insistence the public and private system continue to be short-changed from the previous funding trajectory.

Then there's the miracle of turning around a $14.5 billion deficit this year to a $2.2 billion surplus the following year.

There is enough in the budget for coalition MPs to serve up to their electorates, but making a meal of the long-term "vision thing" could see Labor on the treasury benches.


3 min read

Published

Source: AAP



Share this with family and friends


Get SBS News straight to your inbox

Sign up now for daily news from Australia and around the world. You can also subscribe to Insight's weekly newsletter for in-depth features and first-person stories.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Stream now

Watch the latest news videos from Australia and across the world