Having an economy thriving off innovation rather than resources has been one of the goals of this year’s budget. The Government says average Australians will benefit from stronger economic growth rather than handouts.

Ashleigh Whittaker reports.

TRANSCRIPT

Scott Morrison’s first budget was highly anticipated.

Scott Morrison, Treasurer: “Mr Speaker, this cannot be just another budget because these are extraordinary times.”

The winners include small businesses.

Their company tax goes down to 27.5 per cent, affecting around 870 000 businesses.

Scott Morrison, Treasurer: “Small and medium businesses are driving jobs growth in Australia.”

There’s a change to address bracket creep for middle income earners, giving a modest tax break for around 500 000 Australians.

Bill Shorten, Opposition Leader: “This is a budget which will favour the big end of town over everyday Australians.”

But the Government’s promised higher tax for multinationals, who shift funds offshore.

With a national task-force to bring billions back onto the budget’s bottom line.

Scott Morrison, Treasurer: “Fix the problems in the tax system so we can cover our responsibilities for the next generation and ensure the government lives within its means.”

Scott Morrison introduced a new youth jobs scheme, which aims to provide a real world initiative for those looking for work.

More than $32 billion has been allocated to the defence sector, including around one and a half billion for innovation.

Malcolm Turnbull is sticking by his Treasurer’s economic plan.

Malcolm Turnbull, Prime Minister: “What Scott Morrison was delivering last night was a plan for jobs and growth, I think that’s exciting but everyone’s got their own views.”

And not everyone is happy with the raft of Budget changes to superannuation.

Wealthier retirees with a nest egg above 1.6 million will face a higher tax, and the Government’s lowered the annual cap on concessional contributions.

Smokers are big losers in this budget, the cost of cigarettes is to rise by 12.5% each year to 2020.

The budget has been described as a tough sell as it comes on the eve of an election campaign, the July 2nd date will be confirmed later this week.

Ashleigh Whittaker, QUT News.