Budget 2016-17: overview

This Budget sets out the Government’s economic plan to ensure Australia continues to successfully transition from the mining investment boom to a stronger, more diversified, new economy in three key ways. First, by sticking to the Government’s plan for jobs and growth through: a Ten Year Enterprise Tax Plan that will boost new investment, create and support jobs and increase real wages, starting with tax cuts for small and medium-sized enterprises, that will permanently increase the size of the economy by just over one per cent in the long term; continued investment in the National Innovation and Science agenda, including support for new start-up businesses; securing an advanced local defence manufacturing industry through the twenty year defence industry plan, driving new high-tech jobs in Australia, including 3,600 direct jobs as part of the Government’s naval shipbuilding programme; opening up more export opportunities through trade agreements that are already delivering new jobs and markets for Australian producers, manufacturers and service providers; and working to get more than 100,000 vulnerable young people into jobs in the growing Australian economy by giving them real work experience with real employers that leads to real jobs. Second, by fixing problems in the tax system to enable us to sustainably cover the Government’s responsibilities for the next generation by: combating tax avoidance, especially by multinational corporations, to ensure everyone pays the tax they should on what they earn in Australia; closing off generous superannuation tax concessions for Australia’s most wealthy and better targeting superannuation tax concessions to support working Australians build independent wealth for their retirement; and giving hard working Australians and the Australian businesses that employ them greater tax relief to earn more without being taxed more. And third, ensuring that the Government lives within its means, to balance the budget and reduce the burden of long-term debt by: continuing to keep government spending growth under control and to ensure spending is as efficient, effective and well-targeted as possible; targeting welfare abuse to ensure the social safety net is there for Australia’s most vulnerable, in particular those with disabilities; and responsibly investing in infrastructure like roads, rail, dams and public transport and guaranteeing real, affordable funding for health and education services that Australians rely on