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The 2017-18 Australian Commonwealth budget maintained the Government's projected return to surplus in 2020-21. However, the revenue growth underpinning it is dependent on a relatively positive economic story playing out.
" Slightly higher deficits together with 'off-budget' spending will boost debt, which is not without cost."
David Plank, Head of Australian Economics at ANZMoreover, slightly higher deficits together with 'off-budget' capital spending will boost Government debt, which is not without cost.
The Government found money for infrastructure, removed $13 billion in 'zombie' policy measures and tinkered with housing affordability.
This has been partially funded by a $6.3 billion 'major-bank levy' and a $8.2 billion lift in the Medicare levy (of an extra 0.5 percentage points from July 2019).
Check out the infographic below to learn more.{CF_IMAGE}
David Plank is Head of Australian Economics at ANZ
You can read BlueNotes’ FULL COVERAGE of #Budget2017 HERE
The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.
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Budget2017: carrots, sticks and steel
2017-05-10
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EDITOR'S PICKS
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The federal budget tries to balance spending with a creative search for revenue.
2017-05-10 14:30 -
May’s Australian federal budget is being cast as one which will boost infrastructure spending and address ‘fairness’ including through housing affordability and university fee arrangements.
2017-05-02 23:09 -
Australia's Commonwealth Budget has been unveiled, with a focus on security, fairness and opportunity.
2017-05-10 13:21