Federal Budget 2018: Here Are Some Announcements to Expect
Australia’s federal government is expected to announce hefty aged-care and infrastructure spending, and deliver some tax cuts as it reveals its annual budget on Tuesday, May 8. The Turnbull government also announced that it plans to return the federal budget to a surplus a whole year earlier than had been forecast.
Low- to middle-income earners in Australia are set to receive an increase in tax cuts of up to $10.50 a week from tonight’s budget. The tax relief, expected to start on July 1, will come in the form of an increase in the Low Income Tax Offset (LITO) which is automatically applied when you lodge your tax return, reported the ABC.
Treasurer Scott Morrison recently laughed off suggestions he would be playing Santa on Tuesday evening, warning instead that tax cuts targeting lower and middle-income earners would not be “mammoth” given the country’s remaining $523 billion debt.
Morrison is also set to announce a plan to return the budget to surplus in 2019-20 — a year ahead of previous forecasts.
Baby-boomers can expect an announcement for a multibillion-dollar aged-care and retirees package which will include 20,000 extra home-care places to enable older Australians to stay in their homes longer and providing retirees with incentives to start businesses, reported The Australian.
A $24 billion infrastructure package is anticipated to be revealed in the budget to deliver funding to road and rail projects with the aim to “bust congestion.”
“The plan for a stronger economy that I’ll be announcing tonight is about improving the opportunities for all Australians to live in a stronger economy,” Morrison told reporters as he arrived at Parliament House early on Tuesday, May 8.
Reuters contributed to this report