Senator the Hon. Mathias Cormann
Minister for Finance and the Public Service
Leader of the Government in the Senate
Senator for Western Australia
The Hon. Josh Frydenberg MP
Federal Member for Kooyong
The 2019-20 Budget is the Morrison Government’s next instalment of our plan to build a stronger economy and secure a better future for all Australians.
This Budget, which proposes lower taxes at the same time as increased funding for essential services like schools, hospitals and roads, is the foundation for a stronger economy and more jobs.
After more than a decade of deficits, this budget forecasts a surplus of $7.1 billion in 2019-20, a $55.5 billion turnaround from the deficit we inherited six years ago.
While the Budget forecasts a surplus it also delivers an additional $158 billion in income tax relief for hard-working Australians on top of the $144 billion in tax cuts locked into legislation last year. The Government will provide additional tax relief to hard-working Australians by more than doubling the low and middle income tax offset. Low- and middleincome earners will receive tax relief of up to $1,080 to support consumption growth and ease cost of living pressures. That’s up to $2,160 for a dual income family. Over 10 million Australians are estimated to benefit from the offset with around 4.5 million individuals estimated to receive the maximum benefit for the 2018-19 income year.
Taxpayers will be able to access the offset after they lodge their end of year tax returns from 1 July 2019, which is in just 13 weeks’ time.
The Government is helping Australian businesses grow by increasing and expanding access to the instant asset write-off. In total, around 3.4 million businesses will now be eligible to access the instant asset write-off. From tonight small and medium-sized businesses with an annual turnover of up to $50 million (up from $10 million currently) will be able to immediately deduct eligible assets costing up to $30,000 (up from $25,000) enabling them to grow their businesses and employ more Australians.
We will deliver record infrastructure investment of $100 billion over the next decade: busting congestion and getting families home sooner and safer, while investing in our future economic growth.
This includes $2 billion to help deliver fast rail from Geelong to Melbourne, an increase of $3 billion for the Urban Congestion Fund taking it to $4 billion, a $2.2 billion Road Safety Package and an additional $1 billion for the next phase of the Roads of Strategic Importance initiative.
Our economic plan delivers record health funding to guarantee Medicare, fund even more hospital services and provide greater access to more affordable medicines.
In this Budget, the Government is increasing total health funding from $81.8 billion in 2019-20 to $89.5 billion in 2022-23, up from $64 billion in 2013-14.
We will deliver record funding for schools and new measures to equip Australians with the skills they need.
Recurrent funding for schools will reach a record $19.9 billion in 2019, with average Commonwealth funding per student having increased from $3,755 in 2014 to $5,097 in 2019.
The Government will also invest more than $525 million to upgrade the vocational education and training sector including a package which will deliver up to 80,000 new apprentices.
Through strong economic management, we have successfully turned around Labor’s legacy of debt and deficit. By directing spending to where it’s most needed and most effective, average annual real growth in payments, expected to be 1.9 per cent, is the lowest of any government in 50 years.
Our plan for a stronger economy will put more money back in the pockets of Australians, create more jobs and guarantee essential services like Medicare, hospitals, schools and roads.
For Minister Cormann: Karen Wu - 0428 350 139
For the Treasurer: Kane Silom - (02) 6277 7340