Australia’s conservative government proposed tax cuts for low and middle-income classes and promised the first budget surplus in a decade, shaping votes for the election (Reuters). Treasurer Josh Frydenberg offered 112 billion USD in tax cuts on top of tax cuts of 102 billion USD last year (Reuters). He also predicts a surplus of approximately 5.1 billion USD in the fiscal year ending June 2020 with higher export receipts and tax revenues (Reuters).
Former Australian deputy prime minister, Wayne Swan, remains unpersuaded as the proposal does not deal with the cause of weak consumption (CNBC). Swan expresses the budget as a wasted opportunity and suggests politicians develop medium and long-term plans for the country. Sources expect the election to occur in May and if the conservative coalition wins, the government will vote on the proposed budget (CNBC).
Tags: Australia, John Frydenberg, tax cuts, Australian economy