The Australian Government’s Budget isn’t really any different to a household budget – just a lot bigger.
Revenue comes in, most of it from individual and company taxes, along with GST.
Expenses go out; in the case of the Federal Government, the biggest costs are welfare, health, defence and education.
If there’s money left over, the Government has a surplus.
If there’s not enough money coming in to pay the bills, the Government has a deficit.
Just like a household budget, if there’s a deficit, you need to make up the difference by borrowing money.
In the 2017/18 financial year, the Government expects a deficit of $29.4 billion.
Treasurer Scott Morrison is tipping better times ahead, saying he expects the Budget to return to a surplus in 2020/21.
But how does all this affect you?
Measuring the impact
If you'd like to know more about this year's Budget or anything related to your super, call 1800 444 396 and chat to one of our friendly team today.
Note: any initiatives proposed in the Budget must pass through Parliament before they can take effect.