This Budget is about building a stronger economy, to create more jobs and guarantee the essential services Australians rely on. Our plan will:
- Deliver tax relief to encourage and reward working Australians.
- Continue to back business to invest and create more jobs.
- Guarantee essential services like Medicare, hospitals, schools and care for older Australians.
- Keep Australians safe.
- Ensure the Government lives within its means.
Australia’s economy is pulling out of a tough period but is making real progress.
According to the Australian Bureau of Statistics, 2017 saw the strongest year of jobs growth on record, with 415,000 more jobs created, three quarters of which were full time.
The 16 consecutive months of net job creation to January 2018 was the longest positive run since records began.
Our plan will create more jobs by backing small businesses, boosting exports, building vital road and rail infrastructure and making energy more affordable.
Guaranteeing Essential Services
A stronger economy is enabling us to deliver record support for services.
We are delivering $24.5 billion of extra schools funding over a decade (on average, 50 per cent more per student).
The Government is providing record levels of funding for public hospitals.
A new public hospital agreement will deliver more than $30 billion in additional funding between 2020-21 and 2024-25 — a 30 per cent increase over the previous five years.
Australians can be assured that funding for the Medicare Benefits Schedule and the Pharmaceutical Benefits Scheme is guaranteed through the Government legislated Medicare Guarantee Fund.
From 2 July 2018, the Government’s New Child Care Package will come into effect, providing more support for nearly one million Australian families.
Government Living Within Its Means
Careful spending and prudent measures to improve tax and welfare integrity have helped the Budget’s return to balance.
Since the 2016 election, the Government has legislated over $41 billion of budget repair measures that have strengthened the bottom line.
The real expenditure growth remains below two per cent, the most restrained of any Government in more than fifty years.
In 2017-18, the Budget deficit will be $18.2 billion, less than half what it was two years ago.
We are on track for a modest balance in 2019-20, increasing to a projected surplus of $11 billion in 2020-21.
With the budget returning to balance, we will start paying down debt. Net debt will peak at 18.6 per cent of GDP in 2017-18 and will fall by around $30 billion over the next four years.