What we know, and don't, about the budget

We're less than three weeks away from Scott Morrison's first budget and very little is known about what it might contain.

WHAT DO WE KNOW?

WHAT WE KNOW

* There won't be a fistful of dollars as the government lives up to its promise of living within its means.

* Prudence, fairness and responsibility will be the catchwords.

* Measures will be included to boost jobs and growth as the economy transitions from the mining investment boom.

* The much-touted tax reform package will be included.

WHAT WON'T BE THERE

* Personal income tax cuts, despite concerns wage inflation is pushing middle-income earners into the second-highest tax bracket.

* Changes to tax breaks for property investors, aka as negative gearing.

* A rise in the rate of GST, or broadening its base.

WHAT WILL BE THERE

* Revenue measures, interpreted as tax hikes, but a reduction in the overall tax burden.

* Signs of modest improvement in the bottom line.

* Confirmation the budget repair levy on high-income earners will end on July 1, 2017.

HINTED AT

* Timetable for phased-in cut to the company tax rate of 30 per cent.

* Paring back superannuation tax concessions for high-income earners.

* Tobacco excise increase, mimicking Labor's proposal.

WHAT THE ECONOMY IS DOING

* Growing at its fastest pace in two years.

* Benign inflation outlook; unemployment rate remaining close to six per cent; wages growth at its slowest in almost two decades.

* Iron ore prices comfortably above $US50 ($A65) per tonne compared to $US39 assumed in the mid-year budget review.

Source AAP

Stay up to date with SBS NEWS

  • App
  • Subscribe
  • Follow
  • Listen
  • Watch