Budget 2016: ‘Modest economic plan’ launches campaign

Scott Morrison repeatedly described as ‘modest’ the budget used to launch an election campaign.

The budget used to launch an election campaign within days started as a low-key political event, with Scott Morrison repeatedly describing it as “modest” and its measures being “in the middle”.

The Treasurer has declared his first budget was “not typical” and “not ordinary” because it was more of an “economic plan” than usual budgets, and was brought down within days of the election being called.

“This is like no other budget,” Mr Morrison said last night.

He said it was a middling document that “was creating space for those on middle incomes who can earn more and not be taxed more for their efforts”.

After weeks of the government warning there would be no “fistful of dollars” in giveaways, Mr Morrison even played down the only real personal income tax cut with the lifting of the $80,000 threshold for the tax rate of 32.5c in the dollar to $87,000.

He did not nominate the tax cut in his speech and only responded to questions at his press conference by saying there were no tax cuts but a change in the tax threshold to address bracket creep.

“I am not claiming it is a great tax cut,” Mr Morrison said.

He said the average tax advantage for wage earners between $80,000 and $87,000 was $315 a year — about $6 a week.

The political attack on the opposition was directed at Labor’s rec­ord in government and Mr Morrison concentrated on its unfunded promises, its “black hole” in estimating tobacco excise proceeds and policy of “tax and ­spending”.

Mr Morrison said the Coalition had removed Labor’s tax on mining and carbon and had done away with the bank tax.

“And we will not remove or limit negative gearing — that would increase the tax burden on Australians just trying to invest and provide a future for their ­families,” Mr Morrison said. “Those earning less than $80,000 a year in taxable income make up two-thirds of those who use negative gearing.

“They are teachers, nurses, police officers, defence force personnel, office workers and tradespeople.”

Earlier in parliament, Malcolm Turnbull had accused Labor of having a “black hole” on tobacco excise that would not fund their education promises.

“The Leader of the Opposition has gone from school to school, claiming their policies have been funded,” the Prime Minister told parliament.

“They have been caught out. How fair is it to make promises to the Australian people without having the funds to pay for them?” he asked.

Before Mr Morrison categorically ruled out changes to negative gearing and capital gains tax in the budget, Mr Turnbull accused Bill Shorten of “slamming the door shut on aspiration”.

“I would say to every member opposite, who has an investment property, or several, and is negative gearing it, perhaps they could put up their hand now and ­acknowledge the terrible wrong that they are committing,” he said in parliament.