Economy

Australia plans major spending plus surplus in 3 years

Australia plans major spending plus surplus in 3 years”

"We welcome the government's announcement of major infrastructure spending in Sydney, for the new airport at Badgerys Creek, and in WA for major road and rail initiatives", Malouf said.

Australia's treasurer on Tuesday promised a budget for the next fiscal year that would be fair and rein in mounting debt. Just $5 a month. That compares with the RBA's estimates of 2.75-3.75 percent by mid-2018 through to June 2019.

However, like Japanese Prime Minister Shinzo Abe, the conservative government is pinning its hopes on a surge in wages growth, albeit with forecasts that would make Abe blush.

Budget 2017-18 - Local governments picking up the pieces.

According to Deloitte, the theme of this new Budget is to "bury the ghosts of Budgets past" - an appropriate assessment of this new spending spree, as it's been playfully dubbed in the media and social networks as a "Labor Budget" delivered by a Coalition government. "The choice to ensure that we grow our economy for more and better-paid jobs", he added.

However, like any annual federal budget, there was a long list of winners and losers, with numerous latter unable to vote on the measures.

Among other things, the Australian government earmarked 5.3 billion Australian dollars (3.6 billion euros, $3.9 billion) for the construction of a second worldwide airport in Sydney, slated to be ready by 2026.

The Medicare levy will increase by 0.5 percentage points to 2.5% to fund for the National Disability Insurance Scheme, Morrison said.

There will also be additional taxes on foreigners who own properties.

The flagship project is an A$8.4 billion Melbourne to Brisbane inland railway to begin construction next financial year. Analysts estimated it would cut earnings by between 3% and 6% a year. A hostile Senate blocked several key planks of that budget.

Senior political commentators in Canberra have described it as a "Labor Lite" budget -that is, one which could have been handed down by the opposition Labor Party - saying it was not out of the realm of possibility that the Labor party would have introduced similar measures.

He said that Labor would not have given tax breaks to the upper class and large companies and funded the NDIS off the back of big business tax increases. On Wednesday, he said the levy was the cost of the implicit guarantee against failure the government provides to the industry and is needed to bring the budget back into balance.

"We've been listening", he said.

An extra $18.6 billion in funding over 10 years under Turnbull's Gonski 2.0 plan goes some way towards the Coalition restoring its education credentials, but is being complicated and potentially derailed by a fierce debate over Catholic school cuts.

Indeed, with the mining boom over and the housing boom soon to end, public infrastructure might be an important growth support in the next few years, especially if the Australian dollar remains uncomfortably high.

And in recognition of the pounding on health policy it received at the election a year ago, it wants to legislate a Medicare Guarantee Bill with a Medicare Guaranteed Fund to cover all expenses of the scheme.

The Australian Bankers' Association said the levy adds to about A$11.5 billion in income tax paid by the banks previous year.

"The encouraging further development here, is that the Treasurer has committed the government to the Medicare Levy increase, which is a viable way ahead for covering numerous NDIS costs". In particular it increases the vulnerability of the government to a negative shock.

"We will no longer accept, as an excuse from repeat offenders, that the reason they could not meet their mutual obligation requirements was because they were drunk or drug-affected", Morrison said.

Every Australian understands the importance of health care.



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