There is much speculation about what will, and won't be included in this year's federal budget.
Below is an explainer of how the May 3 federal budget is shaping up.
What we know
- There won't be a fistful of dollars as the government lives up to its promise of living within its means.
- Prudence, fairness and responsibility will be the catchwords.
- Measures will be included to boost jobs and growth as the economy transitions from the mining investment boom.
- The much-touted tax reform package will be included.
What won't be there
- Changes to tax breaks for property investors, aka negative gearing.
- Changes to the capital gains tax discount.
- A rise in the rate of GST, or broadening its base.
What will be there
- A reduction in the overall tax burden.
- Modest improvement in the budget bottom line.
- "Sensible" tax changes to prevent bracket creep for people earning over $80,000.
- Confirmation the budget repair levy on high-income earners will end on July 1, 2017.
- $5 billion over four years for a subsidised public dental scheme.
- $2.9 billion extra for public hospitals, stemming from COAG agreement.
- $1.2 billion extra from 2018 for schools aimed at literacy and numeracy checks.
- $230 million cyber security strategy.
- $118 million over two years to support disabled children in schools.
- $100 million domestic violence campaign.
- $21 million in health care for chronic conditions.
- Brought-forward upgrade of Adelaide-Tarcoola rail line.
- New drugs on the Pharmaceutical Benefits Scheme.
- Extra aged-care places.
- $1.7 billion for the Sydney Metro project.
- $167.3 million for a regional road freight corridor in NSW.
- $98.4 million to increase the capacity of Sydney's rail network.
- $78.3 million for Parramatta light rail.
- $60 million for "smart motorways" in NSW.
- $52.2 million to clear NSW road pinch points.
- $2.4 billion for Victorian infrastructure including $877.5 million for the Melbourne Metro tunnel and Murray Basin rail, plus money for Monash Freeway, Western Ring Road, regional roads.
- $750.8 million for WA infrastructure including the Forrestfield-Airport link and $260.8 million for the Perth freight link.
- Funding for Queensland's Ipswich Motorway.
- Timetable for phased-in cut to the company tax rate of 30 per cent.
- Further crackdown on multinational tax dodgers.
- $150 million security package including heavily armed security specialists guarding police buildings.
- $5 million annual cut to ABC
What's hinted at
- Paring back superannuation tax concessions for high-income earners by lowering the 30 per cent tax on concessional contributions to $180,000 from $300,000, and helping for those on low incomes.
- Further crackdown on welfare rorters.
- Incentives for state governments to get private sector involved in road, rail and port projects, and unlock land for housing.
- $1 billion for military role in Afghanistan, Iraq and Middle East, plus $1.4 billion in new defence spending.
What voters want (Essential Poll)
- Increased health and education funding.
- Personal income tax cuts.
- Reduced superannuation tax concessions for high earners.
- Increased tax on cigarettes.
What business wants
- The budget back in balance in five years.
- A path to a cut in the company and personal income tax rates.
- Infrastructure planning and skills training.
What the economy is doing
- Growing at its fastest pace in two years.
- A benign inflation outlook has turned to deflation risking an interest rate cut; unemployment rate remains close to six per cent; wages growth at its slowest in almost two decades.
- Iron ore prices touched $US70 ($A92) per tonne in recent weeks compared to $US39 assumed in the mid-year budget review, a positive for national income.
