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 ANZ
Moreover, 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.
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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.