With a modest surplus of $2.2 billion predicted for 2019-20, and tax cuts totalling $140 billion, Scott Morrison’s third budget is a strong indication of an imminent election.
There are few losers in this budget, with significant personal income tax cuts scheduled for the next seven years without any corresponding halt to the planned reduction of the corporate tax rate. Further, despite recent debate and media coverage, the budget did not include any changes to negative gearing or the 50% CGT discount.
Expenditure programs have been slated for infrastructure and the health care sector, among others. The Government has also proposed measures to ‘level the playing field’ for the digital economy.
However, Scott Morrison has tempered the spending and tax cuts with measures aimed at increasing revenue by an estimated $5.3 Billion over the next 4 years by targeting the Black Economy.
Reforms announced in the budget include: