Budget 2017

Key details so far are:

• Family Incomes Package to “cost” $2 billion a year
• Income between $14,000 and $22,000 drops from 17.5% to 10.5% tax rate
• Income between $48,000 and $52,000 drops from 30% to 17.5% tax rate
• An extra $20 a week for those earning $52,000 or more
• Family tax credits increase by $9 a week for first child and for each subsequent child by between $18 and $27 a week
• Accommodation Supplement maximum rate increases by between $25 and $75 a week for two person households and $40 to $80 a week for larger households
• Extra health spending of $3.9 billion over four years including $900 million next year. Total health spending up $5 billion since 2008
• $1.5 billion more for education over four years including $386 million for ECE, $460 million for school funding
• $434 million for vulnerable children
• $2 billion for law and order including 1,125 more police staff
• $205 million for social housing
• 3.5% GDP growth forecast for next year
• Core crown expenses as % of GDP to go from 29.2% to 27.5% in 2021
• Net debt to fall to 19.3% of GDP in 2021
• Surplus forecast of $1.6b for this year, $2.9b next year and rising to $7.2b in 2021

Looks a pretty sensible mixture of tax cuts and increased spending. Spending as a percentage of GDP still forecast to decline (as economic growth is projected to be high) so the surpluses will grow and allow more debt reduction.