The government has now accepted an early return to a fiscal surplus is no longer feasible given the significant decline in forecasted revenues. Nevertheless, the government’s platform hinges on various social reform programs including DisabilityCare Australia and the National Plan for School Improvement.
Accordingly, a number of revenue/expenditure changes have been announced, directed towards ensuring there is an accumulated funding source for these programs by the end of the decade.
- Education and disability reforms feature heavily in the government's thinking.
- Extensive changes to protect and broaden the corporate tax base are proposed.
- Capital gains tax regime for non-residents is to be strengthened, future personal tax cuts deferred and certain welfare benefits curtailed.