Fancy a tax cut?
It’s looking a lot more promising now that the Coalition government has delivered the first budget surplus in more than 10 years.
And Australians will get a better quality of life because of the federal government’s economic wins, according to Treasurer Josh Frydenberg, who has projected a budget surplus of $4.1 billion within two years.
The first budget update has disclosed information that could mean additional money for Australian wallets. Mr Frydenberg’s budget has disclosed an $11 billion war chest at the government’s will before the next election.
Australians will get a better quality of life
Labor feels that the Liberal-National Coalition has benefited from good global conditions and has accused the government of not putting in the hard work.
The mid-year budget which was announced on Monday, demonstrates the government is on the right path for a $4.1 billion excess in 2019/20 — which almost doubles the May forecast of $2.2 billion.
On top of that, the Coalition anticipates to distribute surpluses for the next decade, including $12.5 billion for 2020/21 and $19 billion the following financial year.
According to the Australian Associated Press, the previous deficit forecast in May of $14.5 billion for this financial year has been cut to $5.2 billion.
These increases occurred since the government had raked in more revenue than predicted, due to corporate tax receipts and solid employment growth.
Mr Frydenberg said this result is ‘no accident’ and has put it to vibrant economic management.
Adding that the current shape of the nation’s books is not a goal for its own sake.
He told reporters on Monday in Canberra: ‘It is a means for a better way of life for more Australians’.
Growth hurting Labor’s chances?
Labor says that an optimistic global picture is the reason for the better results.
Predictably. The strong economy could still undo Labor’s hopes of winning the next election.
When was the last time any party gave due credit for economic gains to their opponents?
As shadow treasurer Chris Bowen said:
‘This is a government which is riding on the back of a good international economy and has given up on the task of budget repair themselves.
‘Growth is down, investment growth is down, wages growth is down, consumption growth is down, and the only thing that’s up is terms of trade.’
Growth has been forecast as 2.75% for this financial year, with an increase to 3% for 2019/20 and remaining at that figure for the next couple of years.
It is expected that the unemployment rate will remain at 5% this year, and will stay at that figure until mid-2022.
But for this financial year and the following, the government clipped wage forecasts by 0.25%, with a 2.5% wage predicted for 2018/19 and 3% the following year. Labor brought attention to Australia’s debt levels, with an expected net debt to be $351.9 billion for this financial year.
To their defence, Mr Frydenberg had said that the forecast is presumed to trim down to $48.4 billion (1.5% of GDP) in 2028/29.
The budget also frameworks the costs correlated with policies introduced since May’s budget, along with an extra $3.2 billion for non-government schools over 10 years.
A multibillion-dollar ‘contingency reserve’ may approve for spending, for example deeper tax cuts intended for swaying voters.
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