Australians are awaiting the federal budget 2016 proposals to be presented by Australian Treasurer Scott Morrison on Tuesday in Canberra.
The budget is expected to feature “sensible” amendments to personal income tax structures to make payments easier for average income groups. According to Herald Sun, these groups are compelled to pay higher taxes directly or indirectly through wage inflation. The federal budget 2016 will also include changes in the funding alternatives surrounding infrastructure like schools.
Morrison will introduce a surprise concept of “economic dividend” that would enhance national growth through tax cuts and an investment of $5 billion in major projects being handled across the country as a reassurance to fellow Aussies. The treasurer told The Australian that the infrastructure plans to be proposed in the Australian budget 2016 will ensure economic development of the nation with $2.2 billion to be given to NSW and $4.2 billion offered to Victoria to improve the roadways and railways projects.
“Certainly what we plan to announce on Tuesday night we know will result in an increase to GDP over the longer term,” Morrison told The Australian. “Treasury have been able to put a figure on that. Now that is just in relation to measures on tax. That would just be the starting point of the economic dividend of what we announce in the budget. It only relates to one element. There is infrastructure, defence, the national innovation and science agenda — all of this adds to that again.”
Morrison stated no fast-tracking reforms in the tax structure in his first federal budget. He said the plans are still in progress and are expected to be implemented prior to federal elections scheduled on July 2, 2016. “The budget will be legislated in the usual way,” he told reporters in Queanbeyan, NSW.
Prime Minister Malcolm Turnbull told Sky News that the government was not “fiddling” and the reforms would be substantial and will be for the good of the public.