The Treasurer, Scott Morrison handed down his third Federal Budget on Tuesday May 8 and there were no major surprises. In terms of the economy, the Budget deficit is forecast to drop to $14.5 billion in 2018/19 after hitting $18.2 billion in 2017/18. It is projected to hit a positive balance of $2.2 billion in 2019/20 before surpluses increase to $11 billion in 2020/21 and $16.2 billion in 2021/22.
Unemployment is forecast to be 5.25% down from 5.5% in 2017/18 and projected to fall again to 5% in 2021/22. Inflation at 2.25% in 2018/19, up from 2% in 2017/18. It is projected to hit 2.5% next year and remain there for the following two years.
Key objectives of the Budget were:
- To generate opportunities for businesses and workers
- Continued economic and employment growth
- Reductions in tax payable for low to middle income earners
- A fairer tax system by cracking down on the cash economy
- A balanced budget in two years and then moving to surplus budgets to repay national debt
- A more competitive economy with enhanced export potential
- More aged care facilities and pensioner benefits
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