Despite stronger economic growth and improvement of fiscal position, many Australian still experience an increasing burden of living cost. Providing tax reliefs to people belonging to lower and middle income group is expected to make structure of personal income tax structure fairer, lower and simpler. It is projected that in the new tax regime, nearly 94 percent of the taxpayers will face a marginal tax rate of 32.5 percent compared to 63 percent if the tax structure remained unchanged (Chohan 2017).
Supporting business to increases investment and create more jobs
Objective of national government plan is to achieve a stronger economy, accounting growth of jobs and recovering business investment in non-mining sector. In order to achieve sustainable economic growth, government needs to stick to its plan for a stronger economy. Rewards of a job in the form of wage, income or in any other form are important components of a stronger economy (budget.gov.au 2018). Government is attempting to stimulate economic growth by cutting tax rate for business, giving priorities to small and medium sized enterprises. Government offers necessary infrastructure to support businesses and jobs, provide incentive to encourage research and development and advanced technology. This will help business to grow and make domestic industries more competitive. In order to secure the economy, Australia should continue to adapt changing economic environment. Government focuses to develop capacities in technology and science to ensure that the economy does not left behind.