If you ask PwC Australia chief economist Jeremy Thorpe, this budget was a “Slurpee budget”.
“We’re going to get a sugar high as the windfall spending flows through the economy, but hopefully we avoid the brain freeze,” Thorpe told AAP.
Meanwhile, executive director of The Parenthood, Alys Gagnon, said: “Scott Morrison is offering most middle-income families $530 a year in tax cuts, but for many of those same families, that extra money is eaten up by costs that just keep rising.
“… About a quarter of a million Aussie families will be worse off under the government’s new childcare plan. A $530 saving in a tax cut won’t help pay the $100 a day childcare bill. And if you earn less than $37,000, that tax cut is just $200.”
So, who are the overall winners and losers?
Average income earners – 94 per cent of Australians will be on a tax rate of 32.5 per cent or less in 2024, with those on the average wage of $84,600 saving $530 a year.
Seniors – will be able to keep more of what they earn on the side, access equity in their homes for retirement and face a shorter waiting list if they are seeking care at home.
Small business – will get an injection of life from a corporate tax cut and a year-long extension of the instant asset write-off.
The sick – a new public hospitals agreement will deliver an extra $30 billion to 2024, while medicines to treat breast cancer and multiple sclerosis will be made cheaper.
Schools – set to benefit from an extra $24.5 billion under the so-called Gonski 2.0 needs-based funding package.
States – 10-year $75 billion infrastructure package for projects in various states and territories and a $1 billion Urban Congestion Fund to improve traffic flow and safety at state level.