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 @michellegrattan: Grattan on Friday: How 'guaranteed' is a rise in the superannuation guarantee? https://t.co/VSFN6SOkJu via @Conversati…

Is trust between the government and Australians broken? New book ready to pre-order, edited by IGPA's Mark Evans,… https://t.co/aLSm1f69A3

RT @IPAAVic: How will we be leading in 2030? Join us for an innovative approach to the trials and triumphs of leadership in the public sect…

RT @DelDemUCan: YOU CAN STILL REGISTER for Canberra Conversation on Monday, feat Prof Min Reauchamps of @G1000org to talk about the Belgian…

RT @ThinkPlace: “We are here to make sense of the ThinkPlace magic,” @MarkEvansACT says to a studio packed with friends and allies. https:/…

RT @ThinkPlace: “This is a really important book,” says Mark Evans from the museum of Australian democracy. “It’s testimony to the rise of…

RT @ThinkPlace: “When you look at a problem with a systems thinking approach you are looking at it holistically,” says @thoughtpod “it open…

IGPA’s Mark Evans @MarkEvansACT facilitates panel discussion on the contribution of design thinking to solving big… https://t.co/PSppYFGUnM

RT @DelDemUCan: Cheers to @UCIGPA @UniCanberra PhD student @nicolemoore81 for her contribution as ACT Legislative Assembly Library fellow!…

RT @DelDemUCan: What do citizens actually want parties to do? We’re honoured to host @DrAnnikaWerner’s #Canberra debut in our seminar serie…

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