Consumers showing no fear over May budget

Consumers are growing in confidence, showing little concern about Treasurer Scott Morrison's first budget and planned tax changes.

Treasurer Scott Morrison

Lower taxes will come from controlled expenditure in the budget, Treasurer Scott Morrison says. (AAP)

If Australians are worried about what Scott Morrison's first budget has in store for them, they're not showing it.

Consumer confidence continues to grow, now standing at its highest level since December.

It flies in the face of political argy-bargy over tax reform and more recently speculation about an early budget and a double-dissolution election in July.

The treasurer used parliament's question time on Tuesday to nail down budget day timing - May 10 as scheduled - and say how its focus would ensure investment flows towards stronger economic growth and employment.

Prime Minister Malcolm Turnbull also confirmed the government's tax reform package would be included in the budget, when previously it was suggested it would be revealed separately, possibly in April.

Mr Morrison earlier told a conference in Melbourne that controlling expenditure was the best way to cut taxes while fulfilling the government's plan to drive jobs and growth.

"Our principal budget challenge remains expenditure - not to chase higher levels of spending with higher taxes as our opponents propose," he told the Australian Financial Review business summit.

Business Council of Australia chief Jennifer Westacott told the conference Australia's 30 per cent company tax rate was globally uncompetitive and likely to become more so as other countries lower their rates.

But Mr Morrison declined to make commitment to a rate cut in the budget.

"We will try and find a way to ensure the earners in our economy get a better deal out of our tax system, but we'll have to start with those areas that are most likely to drive growth," the treasurer said.

But he would be delivering superannuation changes that were fairer, more flexible and offered more choice.

"That's what the government is working on and we will continue to do that up to the budget," Mr Morrison told parliament.

Both the treasurer and prime minister avoided confirming reports the government was considering a proposal to increase tobacco excise, mimicking Labor's plan, which could lift the price of a packet of cigarettes to $40.

However, Mr Turnbull noted he proposed the measure in a budget-in-reply speech in 2009.

"So, it's hardly an original idea by Labor."


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Source: AAP


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Consumers showing no fear over May budget | SBS News