Treasurer Josh Frydenberg has announced that, for the first time in 12, years the federal budget has returned to surplus.
Handing down the federal budget 2019-20 in parliament this evening, Mr Frydenberg said that it would restore the nation’s finances without raising taxes.
“The budget is back in the black and Australia is back on track,” the Treasurer said, announcing that the coalition delivered a $7.1 billion surplus.
“Over the last year the interest bill on national debt was $18 billion,” he said. “We are reducing the debt and this interest bill, not by higher taxes, but by good financial management and growing the economy.”
Lowering taxes has been a critical part of the government’s agenda. Last year the coalition announced plans to reduce income taxes for Australians by $144 billion. This evening, Mr Frydenberg said the government would deliver more than $150 billion in income tax cuts.
From 1 July 2024 taxes will be reduced from 32.5 per cent to 30 per cent for those earning between $45,000 and $200,000.
“Taxes will always be lower under the coalition,” Mr Frydenberg said, adding that small businesses will also get tax relief from the 2019 budget.
“Small business taxes have been reduced to 25 per cent and the instant asset write-off will be increased from $25,000 to $30,000 and can be used every time and asset under that amount is purchased.
“The instant asset write-off will also be expanded to businesses with a maximum turnover of $50 million.”
The Coalition will also boost infrastructure spending to $100 billion over the next ten years.
More to come.