The better the question. The better the answer. The better the world works. У вас есть вопрос? У нас есть ответ. Решая сложные задачи бизнеса, мы улучшаем мир. У вас є запитання? У нас є відповідь. Вирішуючи складні завдання бізнесу, ми змінюємо світ на краще. Meilleure la question, meilleure la réponse. Pour un monde meilleur. 問題越好。答案越好。商業世界越美好。 问题越好。答案越好。商业世界越美好。

Budget 2018

Punting on growth

Budget 2018 is a prudent, well intentioned budget, but it is reliant on some very rosy growth assumptions.

Highlights:

  • $140b in income tax cuts over the next decade
  • Back in the black (barely) by 2019-20: $2.2b surplus forecast
  • $24.5b infrastructure spending package, spread across all states and territories

Read our analysis here.

Budget 2018 Tax Alert

At a glance

  • R&D changes require action for larger companies
  • Digitisation tax reforms discussion paper to be released soon - prepare for consultation
  • Thin capitalisation integrity changes require start date clarification
  • Focus on tax integrity rules and black economy rules will feed into business systems over time
  • Personal tax rate reductions over time.

We believe there is a need for broader tax reform to underpin fiscal stability and create a more efficient and productive tax regime.

Read more about the tax measures in the budget.

The budget bottom line as it moves from deficit to surplus:
$18.2bn deficit this year.

The budget bottom line as it moves from deficit to surplus:
$2.2bn surplus in 2019-20.

The budget bottom line as it moves from deficit to surplus:
$11bn surplus in 2021.

At a glance

EY - At a glance EY - At a glance EY - At a glance
EY - At a glance EY - At a glance EY - At a glance
EY- Real GDP

The optimistic economic outlook that has been painted represents a key vulnerability to the budget strategy

Contacts

EY - Peter Crone

Peter Crone

Chief Economist
0424 508 488
EY - Alfonso Capito

Alfonso Capito

Tax Partner
0416 295 888