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.

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