A Budget of Tax Cuts and Welfare Crackdown

A revenue windfall ahead of the looming general election has seen the government burnish its economic credentials by forecasting a $2.2 billion surplus in fiscal 2020.

It will be the first surplus since the global financial crisis and with $30 billion in higher revenues, Treasurer Scott Morrison’s third budget will see middle-income workers getting immediate tax relief worth an extra $530 a year.

However, the government will be cracking down on welfare. People on welfare will be the big losers in the budget.

The government will be cranking up its highly contentious robodebt strategy which will be extended for another three years.

Welfare recipients with unpaid court fines issued by state or territory governments will get reduced payments. Fines will be automatically deducted from 1 July 2019.

So if someone is on the maximum Newstart amount of $545.80 a fortnight, the fortnightly welfare payment will be reduced until the debt is paid.

The government will also be able to suspend or cancel the welfare payments of people with outstanding arrest warrants for indictable criminal offences.

To view the full Pro Bono article, click here.

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