The budget might be back in surplus but this seems incredibly divorced from the reality of people’s lives
Budget balances are always about revenue, and in Australia mostly about company tax revenue, and company tax revenue is mostly about the terms of trade. So it is with Monday’s mid-year economic and fiscal outlook (Myefo). The boom in company tax revenue from higher prices for our iron ore and coal exports has enabled the government to forecast a budget surplus even while it also intends to offer more tax cuts worth $9bn over the next three years.
The big picture message the government hopes people will look at and not enquire further is that the budget is now projected to be back in surplus in 2019-20 to the tune of $5bn – an increase from the $2.2bn predicted in the May budget.
Continue reading...from The Guardian https://ift.tt/2Bn1tt4
via
0 Comments