The federal budget is a key component of connecting people to the benefits of Australia’s economic progress. It does this through a tax system that delivers the right incentives for a modern workforce and by the delivery of critical services important to the wellbeing of individuals and the community, such as health, education and infrastructure.
As we face considerable uncertainties, very significant demographic, economic and technological challenges and increasing community expectations, achieving long-term budget sustainability underpinned by a strong tax base will be central to ensuring we have the services and infrastructure we need and want as a progressive society.
Budget repair continues to be the right priority for Australia, especially in an election year. While there have been welcome improvements in the federal budget recently, there are real risks to maintaining a surplus in coming years and paying down debt. The federal government’s forthcoming budget is set to be released on 2 April 2019.
This budget report has identified options that can help deliver long term equitable and sustainable federal budgets while also increasing transparency, and therefore community trust, in the federal budget process.
The report explores:
- Why budget repair still matters;
- Australia's long-term budget position;
- Where spending can be constrained or better targeted; and
- Ways to rebalance the tax burden to achieve long-term budget balance and maintain Australia’s social compact. This includes reining in tax concessions to begin to broaden Australia’s tax base.