It will be the last Budget before the next federal election (due by May 18 2019) and opinion is divided over whether we can expect a big-spending election Budget or restraint designed to demonstrate sound economic management.
We have already seen Treasurer Scott Morrison announce the government would scrap plans to increase the Medicare Levy from 2 to 2.5 per cent.
Further tax cuts are tipped for the Budget, along with increased infrastructure spending and extra funding for aged care.
There is also a high likelihood that we will see an increase in funding for financial regulators, particularly ASIC, given the (banking) royal commission. And perhaps funding for an investigation into the ATO given recent media attention. We may also see some changes to the work related deduction rules, given recent statements by the Commissioner of Taxation.
Key points “announced” to date:
$24 billion over a decade to be announced for road and rail projects that the Government hopes will “bust congestion” and reduce the road toll.
Small tax cut expected for low- and middle-income earners from July
Budget could be back in surplus a year earlier than forecast
By this time tomorrow, we will know if the Treasurer has any surprises in store for us….so watch this space