Treasurer Scott Morrison’s 2016/17 Federal Budget delivers a budget deficit of $39.9 billion which is down from $41 billion in 2014/15. The deficit is projected to drop to $37.1 billion in 2016/17, $26.1 billion in 2017/18, $15.4 billion in 2018/19 and $6 billion in 2019-20.
Mr Morrison’s first budget centred on the theme of ‘targeted’ and ‘responsible’ economic planning, which the government says is essential as Australia’s economy continues to transition away from the mining investment boom. In his budget speech, Morrison said the government’s economic plan is based on three key principles - encouraging jobs and growth, fixing elements of the tax system and continuing to ensure the government lives within its means to balance the budget and reduce the burden of long term debt.
It targets growth tied to an ambitious national innovation and infrastructure plan aimed specifically at growth and jobs. With the federal election on July 2, the focus is to transition from a mining-led economy to a stronger, more diverse economy and set the country on a more sustainable footing to bring the budget back to balance.
The budget provides benefits for businesses both big and small, plus there are significant changes to the superannuation sector that we will explore in this newsletter.
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