Middle class workers and small business owners tipped to be 2016 budget 'winners'
Middle class workers and small business owners are tipped to be the winners in the 2016 budget.
Workers on $80,000 or more are expected to receive tax cuts, which would commence on July 1, the day before the election.
This measure has already provoked a heated response from Labor, with Opposition Leader Bill Shorten accusing the Prime Minister of splashing cash in an attempt to have voters "forgive and forget" the past three years of government.
Senior government ministers, including deputy Liberal leader Julie Bishop and Industry Minister Christopher Pyne, have not confirmed reports of the tax cuts.
Mr Pyne said if they are in the budget he would like to see them rolled out quickly.
"Obviously we want the tax cuts to start earlier rather than later should they be confirmed in the budget, because we want middle class earners not to be moving into higher tax brackets," Mr Pyne told Sky News.
Treasurer Scott Morrison will deliver his first budget on Tuesday, days before Prime Minister Malcolm Turnbull seeks a double-dissolution election on July 2, the treasurer says.
Mr Morrison said small and medium businesses would be the biggest budget winners, telling the Australian Financial Review they are the hope of the economy following the wind down of the mining boom.
Australians can expect to hear more details about the federal budget in the lead-up to its release.
Mr Morrison has indicated he would like to release the measures in the budget in advance to allow him to focus on big picture vision in his budget speech.
On Friday he told reporters he felt Australians understand the global economy is going through a "difficult" period.
"But they're out making it happen every day, and the budget I will hand down next week on behalf of the Turnbull government will be all about backing them in," Mr Morrison said.
Rather than a list of measures, the budget would be an "economic plan".
"This is the path we're clearing so Australians can continue to make their way forward in this difficult global economy," he said.
Having already rejected changes to negative gearing and the GST, the treasurer said the budget would include measures to ensure the tax system was sustainable.
The Turnbull government is also set to announce a $1.2 billion boost for schools.
It's more than $3 billion short of what was promised under Labor's Gonski reforms and will be spread over three years from 2018, Fairfax Media reports.
It will come with conditions on the states and territories, including literacy and numeracy checks on children starting school and minimum standards for students to pass Year 12, News Corp reports.
