This evening Treasurer Scott Morrison delivers the Budget 2018-19 in the House of Representatives. It is widely seen as the government’s last budget before the next federal election.

Budget speech by Treasurer

Budget documents:

Budget Paper No. 1 – Budget Strategy and Outlook

Budget Paper No. 2 – Budget Measures

Budget Paper No. 3 – Federal Financial Relations

Budget Paper No. 4 – Agency Resourcing

Other budget documents here.

Key points:

– Surplus one year early in 2019/2020.

– Deficit will reduce to $14.5 billion in 2018/2019.

– A 7 year personal income tax cut plan, which includes:

  • Tax relief of up to $530 for low and middle income earners.
  • Fixing bracket creep by increasing the top threshold of the 32.5 per cent tax bracket from $87,000 to $90,000 in 2018/2019, $120,000 in 2022/2023 and $200,000 in 2024/2025.
  • Abolish the 37 per cent tax bracket in 2024/2025.

– Cracking down on the “black economy”, including banning cash payments of more than $10,000.

– Revamping the R&D tax incentive, expecting to save $2 billion over the four years.

– Extending the $20,000 instant asset write-off for small business.

– 14,000 additional home care packages for older Australians.

– Increasing the work pension bonus to $300 per fortnight from $250 per fortnight. That means a pensioner can earn up to $7,800 a year without impacting the pension.

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