What’s on offer, Scott? Prime Minister Morrison will be looking to woo voters with his Budget on Tuesday – as he is expected to call a federal election not long afterwards
Tax relief, billions poured into roads and rail, millions for energy projects to (slash power prices – and, finally, a surplus.
That’s what voters can expect from the Federal Budget next Tuesday in what will be the first salvo of Prime Minister Scott Morrison’s election campaign.
Every Budget comes with surprises – last year’s being the shock ban on Australians paying cash in sums greater than $10,000.
But voters are unlikely to find too much that will turn them off this year, with the election expected in the early days of May.
Treasurer Josh Frydenberg will likely be keeping a few happy surprises up his sleeve for the Coalition to woo voters with over the next two months.
No doubt a lot of emphasis will be on the fact Mr Frydenberg is expected to announce the first Budget surplus since Peter Costello’s in 2007, just before the global financial crisis.
Many details of the Budget, including the likely surplus, have already been made clear over the past few weeks and months. Here’s what we know so far:
TAX RELIEF
‘Whenever I get the opportunity to give Australians further tax relief, I never miss the opportunity.’
Mr Morrison was hardly subtle when asked if his government’s new Budget might feature tax cuts for the working class this past week.
The prime minister is widely expected to bring forward tax relief the government legislated in its last Budget.
The cuts were slated to kick in over the next seven years, beginning this financial year, and will be achieved by changing tax thresholds.
Experts have suggested Mr Morrison will fast-forward plans to tweak the 32.5 per cent tax bracket threshold from $90,000 to $120,000.
The change would provide voters in this income bracket and above with a tax cut of up to $1350 per year.
It’s widely expected the government will bring forward planned tax cuts, leaving more money in workers’ pockets
That’s currently slated to happen in 2022, but may come sooner, under a re-elected Coalition government.
Estimates suggest when the tax package has been implemented in full in 2024 – in two elections’ time – someone on an average wage of $85,000 would save $540.
At minimum, Treasurer Josh Frydenberg has said this Budget will not involve tax hikes.
‘It will be about balancing the books, growing the economy with more jobs and guaranteeing the essential services of schools, hospitals and roads – all without increasing taxes,’ Mr Frydenberg said.
ROADS AND RAIL
In the past year, the government has fired up a massive advertising campaign for its $75 billion infrastructure plan over 10 years.
The Treasurer is likely to tout a series of programs on Tuesday that have already been announced. They include the development of a business case for a rail link from Melbourne’s Tullamarine Airport to the city. The Victorian and Federal governments are planning to split the up to $13 billion cost. Construction is due to begin in 2022.
More rail projects are on the agenda in this year’s federal Budget
The near-completed NorthConnex toll road, connecting Sydney’s M1 and M2, may come up for a mention. It will be finished next year.
Other infrastructure measures expected to be touted include the government’s $3.5 billion commitment to a rail line connecting western Sydney’s forthcoming airport to St Marys on the suburban line.
Other supposedly ‘congestion-busting’ infrastructure deals are expected for Adelaide, Hobart, Townsville, Launceston, Darwin, south-east Queensland and Perth.
The Budget will include a $2.2 billion road safety plan including black spot repair and new national office of road safety.
On Monday morning, the government committed to injecting $1 billion into boosting freight networks across the country. The Australian newspaper reported a plan which includes highway upgrades between Queensland and Victoria.
ENERGY AND POWER PRICES
Amid criticism over its comitment to addressing climate change, the government has plunged a further $2 billion into its rebadged Climate Solutions Fund.
Mr Morrison has also committed $1.4 billion to ‘Snowy Hydro 2.0’, an upgrade of the Snowy Mountains power scheme.
The government claims the investment will support the take-off of the renewable energy industry and ‘put downward pressure on wholesale electricity prices’.
The Coalition is investing $56 million in the initial stages of building a second electricity interconnector between Tasmania and the mainland.
It would create ‘more affordable and reliable’ energy after being constructed along with new hydro-electric projects in the island state.
‘Tasmania has the potential to be Australia’s battery to keep the lights on and running costs down and we’ll be there backing them to get there,’ Mr Morrison said.
Mr Morrison’s government has also plunged $10 million into developing business cases for energy projects in north and central Queensland.
It has cobbled together a short list of 12 future power plants which the government could underwrite, including one ‘small’ coal facility.
OTHER MEASURES
The government has committed funding for a replica of Captain James Cook’s endeavour to circumnavigate Australia (tall ship stock image above)
In the wake of the Banking Royal Commission, we also know the Budget will include a $600 million boost for financial regulators ASIC and APRA.
Airports will receive a $294 million security boost and the new Australian Space Agency, based in South Australia, will be funded.
On the health front, some $200 million will be plunged into reducing out of pocket costs for medical scans, such as ultrasounds and X-rays.
The cashless welfare card (or ‘Basic’ card) program will be expanded with a further $129 million investment to bring it to the entire Northern Territory and Cape York.
A $9 million sum will be invested to deal with ‘yellow crazy ants’ in North Queensland and $12 million dedicated to supporting the legacy of Captain James Cook.
The funds will go towards the Cooktown 2020 festival and the circumnavigation of Australia by a replica of Captain Cook’s famous ship, the ‘Endeavour’.