Treasurer Scott Morrison is expected to announce in tomorrow’s Federal Budget that Australia will be in surplus within two years.
The Turnbull Government will reveal it intends to bring the balance sheet back to surplus in the 2019-20 financial year – a full year earlier than originally forecast.
This is despite $24.5 billion in new infrastructure funding across the entire nation The Australian reported.
That will include $5 billion for rail lines connecting to the new Western Sydney airport, and Tullamarine Airport inMelbourne as well as $2 billion for Perth’s Metronet.
The Turnbull Government is tipped to announce during tomorrow’s budget release that it will bring the balance sheet back to surplus in the 2019-20 financial year which would be a full year earlier than orignally forecast
Mr Morrison was able to confirm that the 23.9% tax-to-GDP target they have set out will for the very first time be formally written into the the budget’s strategies, a cunning move since Labor has yet to announce if it can or will match that target.
‘It is now necessary to make it a clear decision and adopt it as part of the fiscal strategy, it’s in, we’ve put it in, and we will keep it in. An incoming government would have to reverse it.’ he said.
‘The fact is that you should be thinking about reducing taxes when you approach this level. Labor would run the limit and they are shameless about it — they call it leading the debate, they boast about it.’
‘It is now necessary to make it a clear decision and adopt it as part of the fiscal strategy, it’s in, we’ve put it in, and we will keep it in. An incoming government would have to reverse it,’ Mr Morrison said
Interestingly, Labor had endorsed a similar tax goal in 2013 but Labor Treasury spokesman Chris Bowen was unable to commit his party to the same target when questioned about it.
It’s believed the offset will deliver tax relief almost immediately on Australians who earn below $87,000 annually.
Mr Morrison said despite the announcement expectations need to be tempered.
‘What we have always said is that we would provide tax relief that is affordable and responsible ,’ he said.
Originally a surplus of $10.4 billion was expected by the 2020/21 financial year after a deficit of $2.6 billion in the previous financial year.