The federal government appears poised to deliver a tax on high income earners as Cabinet signs off on a deficit levy plan.

And it’s being reported an increase in fuel excise is on the budget hit list too.

Alexandra Connor reports.


It’s less than a week to the Abbott Government’s first budget.

And his team is still wavering.

Zed Seselja, Liberal Senator: “My personal view is that we shouldn’t be raising taxes but I don’t know what the final decision is but obviously it appears likely that, that will in fact happen.”

Cabinet has signed off on the new deficit levy, but just what per cent it will be and who it targets is still to be revealed.

Earners above $150,000 are the most likely.

The Opposition says whatever the decision, it’s still a broken election promise.

Bill Shorten, Opposition Leader: “If it sounds like a tax, if it looks like a tax, it is a tax increase.”

Also looking more likely to be part of the budget a change to the indexation on fuel excise.

Meaning, prices at the pump, will rise.

The Government has announced a sweetener for motorists though a $10 billion package for road projects.

And, it’s moving to close six more detention centres on the Australian mainland, and Christmas Island, a saving of around $280 million.

Alexandra Connor, QUT News.