Federal Treasurer Scott Morrison has his eyes firmly on the voters

TREASURER Scott Morrison has outlined a five-point pre-election Budget that seeks to reassure voters — and sweeten them up with tax relief.

Federal Treasurer Scott Morrison. Picture: KYM SMITH

TREASURER Scott Morrison has outlined a five-point pre-election Budget that seeks to reassure voters – and sweeten them up with tax relief.

No threats to Medicare, more money for schools, hospitals and Baby Boomers, along with debt reduction and beefed-up national security were among the key messaging from Mr Morrison in his Budget speech.

The no-risk strategy extended to modest tax cuts, deemed affordable by increasing revenues, and medium-term reform of income tax rates.

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Delivering an $18.2 billion deficit for 2017-18 and forecasting a return to surplus in 2019-20, Mr Morrison told Federal Parliament the result was the best since the last budget of the Howard Government a decade ago.

Net debt is forecast to fall by $30 billion over the forward estimates.

“It has been a long road back from where we started in 2013,” he said.

“We are close to our destination. We must stick to the plan.”

That plan has five key points, Mr Morrison said, as he sought to push voters’ buttons in what will be his last Budget before a federal election.

They include:

— tax relief and a reduction in cost-of-living pressures;

— backing small and medium-sized business to create jobs;

— guaranteeing essential services, including Medicare;

— national security measures; and

— keeping spending and taxes under control.

Immediate tax relief of up to $530 a year will be provided for those with annual earnings of between $48,000 and $90,000, Mr Morrison said.

“For middle income households with both parents working on average wages, this will boost their ‘kitchen table’ budget by more than $1000 every year,” he said.

The cuts will precede a restructure of tax brackets to be completed by 2024-25.

The 37-cents-in-the-dollar bracket will be abolished meaning those earning between $41,000 and $200,000 will pay 32.5 cents.

“This is not spending or a giveaway,” Mr Morrison said.

“We are simply enabling Australians to keep more of what they have earned.”

Mr Morrison sought to head off any repeat of Labor’s so-called Medi-scare campaign by enshrining the public health insurer as an essential service.

With hospitals to receive an extra $30 billion over five years and schools an additional $24.5 billion, he also made a play for protecting health and education.

The leaked aged care package seeks to address nagging concerns over an ageing population, with 14,000 new home care packages over four years at a cost of $1.6 billion.

Rural and regional aged care gets another $146 million, mental health for residential facilities receives $83 million and employers are encouraged to give older people work with $10,000 wage subsidies.

Pensioners will be able to earn more before their benefit is affected, while savings through superannuation will be encouraged with exit fees banned.

Mr Morrison said a $500 million Medical Industry Plan and $2.4 billion for technology infrastructure — including better satellite imagery and GPS, upgrades for the Bureau of Meteorology and research into artificial technology — would create jobs in service industries and agriculture.

The government will do more on national security, building on its controversial policy of stopping the boats and its resourcing of anti-terrorism measures.

Mr Morrison said $294 million would be spent on airport security, including $50 million for regional airports.

Offences against children will be tackled with $68.6 million, part of $160 million to fight crime and terrorism.

A crackdown on the black economy — including a ban on cash payments of more than $10,000 — will save $5.3 billion over four years, Mr Morrison said.

“This is bad news for criminal gangs, terrorists and those who are just trying to cheat on their tax or get a discount for letting someone else cheat on their tax,” he said.

“It’s not clever. It’s not OK. It’s a crime.”

There was even a shot at the under-fire big banks, as a Royal Commission lifts the lid on a litany of malpractices.

The major bank levy will remain, while complaints and accountability measures take effect later this year.

And perhaps in a last-ditch attempt to get controversial corporate tax cuts over the line, Mr Morrison warned the government’s full plan needed implementing.

“We cannot take a stronger economy for granted,” he said.

“We live in a very competitive world.

“If we make the wrong calls, other countries will ‘cut our lunch’.”