Australian budget to shape economy for next decade

6 May, 2018 12:00 AM printer

CANBERRA: Australia's Treasurer Scott Morrison promised to limit spending ahead of delivering the nation's budget, local media reported Saturday.

Scott Morrison will announce the federal budget for the next year, his third as treasurer, on May 8, reports Xinhua.

It is expected to contain tax cuts for Australians on low and middle incomes while reaffirming the government's commitment to slashing the company tax rate.

In a major interview ahead of the budget, Morrison said he wants the budget to define the country's economy for the next decade with a strong focus on pay packets.

"I want it to be an economy where (Australians) get a job, where they can earn more, where their job will be secure, where they'll be working in a business that's growing, expanding their markets, and they're benefiting from a more buoyant economy," he told Fairfax Media on Saturday.

Morrison made key promises to keep the overall tax burden below 23.9 percent of gross domestic product (GDP) and to match every new spending decision with a saving made elsewhere in the budget.

Spending decisions already announced mean that Morrison will have to save at least 7 billion Australian dollars (5.27 billion U.S. dollars) elsewhere in the budget to keep that promise.

Those spending decisions include 500 million Australian dollars to save the Great Barrier Reef from climate change, 140 million Australian dollars to attract film productions and 50 million Australian dollars to establish Australia's first space agency.

Morrison said he believes money can be saved through a crackdown on tax avoidance.

"There will always be more to be done in that space, because things keep changing - the economy keeps changing," he said.

"The tax system, the welfare system - you've got to protect their integrity every year.