The 2017 Federal Budget is shaping up to be one of the toughest budgets to second guess in decades. The Coalition Government came to power under Tony Abbott late in 2013 promising to ‘get the budget back under control’ and to ‘start reducing debt’. The Coalition promised to achieve these outcomes with a low taxation agenda coupled with a desire to stop “wasteful spending”. However, the Turnbull government has been unable to control the nation’s spiralling welfare bill partly because Labor and an obstructionist Senate are refusing to back Government welfare cuts, partly because of a commitment to the new mantra of “jobs and growth” and partly because of the need to keep its electorate on side.

In an exclusive interview with The Courier-Mail on 14 February, Treasurer Scott Morrison said the impasse was leaving tough choices in the lead-up to May’s Budget implying that the Government could be forced to raise taxes to pay for welfare recipients because of unsustainable debt levels but, just six weeks later, tax cuts have been announced for a projected 3.1 million Australians and a tax rate of 27.5 per cent for businesses with a turnover of up to $50 million. The second highest income tax rate of 37 per cent will now kick in at $87,000 instead of $80,000. The measure, intended to prevent average wage earners from moving into the second highest tax bracket, will benefit anyone earning more than $80,000.

Over the next month government and opposition will be engaged in intensive experimentation with tax and transfer models to see how the government can achieve a balancing act between staving off recession and renewal and how the opposition can craft a plausible alternative economic project.

Read more commentary on:

The Australian Economy

The Global Economy

RT @rowenafarr: Looking forward to checking out the 'Design as a Democratic Force' event today https://t.co/hqhiMYRT1O hosted by @HumanServ…

RT @DelibThinks: Moving into the final panel discussion at the 'design at the democratic force' event hosted by @HumanServicesAU. Great ide…

RT @policy_space: Today: @MarkEvansACT & @ProfStoker on "Dual Citizenship: Make a Date with Democracy and Let the Public Decide" Is it any…

RT @DelDemUCan: Our DECRA fellow @NicoleCurato is this year's keynote speaker of @latrobe Philippine Studies conference. She asks whose suf…

Voters see through Turnbull, but cool on Shorten: Queensland research conducted by IGPA makes interesting reading i… https://t.co/Ykebq7scZV

RT @mosaiclabco: This is a discussion worth watching! Great conversation around challenges, opportunities + ideas for doing #democracy diff…

RT @BroadAgenda5050: The atmosphere and culture of politics appears alien to many citizens argues @ProfStoker @UCIGPA https://t.co/WANQzgfK…

RT @Virginia_Hauss: Fantastic yak - fabulous panel - powerful ideas. I feel a big deliberative pow-wow coming on! @newdemocracyAUS @UCIGPA

Please enter your email to subscribe and receive updates:

Institute's Office

Building 23, Level B & Building 24
University Drive South
University of Canberra
ACT 2601
Phone: +61 2 6201 2074

NATSEM

Building 24
University Drive South
University of Canberra
ACT 2601
Phone: +61 2 6201 2780