Labor’s Budget strategy will successfully repair the budget without smashing family budgets.
Our budget strategy is framed by our 10-year economic plan that is focused on six key priorities to build a stronger, fairer economy that will support the economic transition today while driving productivity and living standards into the future.
- Investing in people – Labor will improve the quality of education and training, to drive productivity and ensure Australians are prepared for the jobs of the future.
- Building Australia – Labor will facilitate the economic transition by investing in roads, rail and the NBN, creating jobs and improving the liveability and productivity of our cities and regions.
- Driving investment in renewables and new industry – Labor will stand up for jobs in manufacturing and send the right signals to attract investment in renewables.
- Supporting innovation and startups – Labor will drive jobs and innovation through tax relief and support for startups.
- Helping small business – Labor will deliver tax cuts to small businesses while putting them on a more even playing field when it comes to competing in the marketplace.
- Budget repair that's fair – Labor will better target tax concessions to middle and working class families and ensure greater female participation in the workforce.
These investments are vital to future growth in our economy, and to boost wages and living standards. They also underpin future budget revenue, and a sustainable fiscal position.
Labor has been outlining our 10-year economic plan from opposition. Throughout, we have been announcing responsible and calibrated budget repair measures to fund our investments and improve the budget position.
We have a clear plan for economic growth, and a clear plan to pay for it.
Labor will take the hard choices in the national interest
We know that funding our priorities requires difficult choices.
Our top priorities are better schools, protecting Medicare and investing in job-creating infrastructure – and we are prepared to make difficult budget decisions to ensure we can fully fund our priorities.
Under our plan for budget repair, we will reduce the deficit every year and return the budget to balance the same year as the Liberals.
Labor will not announce a policy that cannot be funded. We can afford our policies because:
- We are supporting responsible savings measures;
- We are proposing our own savings measures; and
- We are opposing the Liberals’ irresponsible new spending.
These are difficult decisions, but the right decisions, and they offer a clear choice for people at this election.
Following the release of the independent PEFO and consistent with our practice of updating our proposals to reflect the latest Budget forecasts and parameters based on advice from the independent Parliamentary Budget Office, Labor is releasing an updated package of budget improvements.
From Opposition, Labor has taken difficult decisions to announce $122.3 billion in budget improvements. This includes measures to better target negative gearing, and ensure big multinationals pay their fair share of tax.
To present the most accurate account of Labor’s budget improvements, we are no longer including proposals where Labor has led the policy debate, and which have most recently been adopted by the Government, such as changes to the tobacco excise and generous superannuation tax concessions for high income earners.
Labor is building on the savings we have already announced with a further $6.1 billion of improvements to the budget over the medium term.
Labor will also resolve several unlegislated measures that remain stuck in the Parliament. These unfair measures have been rejected by the Parliament and the Australian people and yet remain in the Government’s budget, destroying the credibility of their bottom line.
With the Budget now in a much worse state than it was in 2014, Labor is taking difficult decisions to not reverse some measures. Resolving the Government’s budget mess will have a budget impact of $5.5 billion over the forward estimates, and $23 billion over medium term.
After fixing the Government’s budget mess, new savings and the latest updates on Labor’s previously announced budget improvements, the total budget improvements proposed by Labor amount to $105.4 billion over the decade.
Resolving unlegislated measures
Net Budget improvement under Labor