Treasurer Jim Chalmers has described the income tax cuts in this week’s federal budget as a “top-up”. They will amount to roughly one cup of coffee a week for every taxpayer in the first year.
But they will add another A$17 billion to the deficit over coming years, in addition to a raft of previously announced spending measures and very little savings.
That is against a backdrop of the most uncertain global economic outlook since the Global Financial Crisis of 2007–08. Australia may face a real economic shock if trade wars trigger recessions in our major trading partners.
We asked five experts if this is the right budget for these economic times. Only two agreed, with three saying much more is needed to address long-term structural debt and meaningful economic reform.
This article was originally published on The Conversation. Read the original article.
