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PM makes last-minute promises ahead of budget

Tuesday’s federal budget is shaping as a tax and infrastructure budget, that is more of a campaign launch manifesto for a government fighting for survival.

With the polls weighted heavily against the Coalition to win the federal election slated for mid-May, the 2019 budget is a high-stakes game for Prime Minister Scott Morrison and his treasurer Josh Frydenberg.

Making his final pitch to voters before Tuesday night’s budget, Mr Morrison on Monday announced that breast and skin cancer patients would be offered access to cheaper medicines.

Mr Morrison said two new drugs would be added to the Pharmaceutical Benefits Scheme (PBS), something he said was made possible only through the effective economic management of his government.

“We are in the war against cancer and the fight against cancer. What fuels our army on this is the strong economy and the strong budget. Without that, you’re going into battle with nothing,” he told reporters.

coalition last minute budget

Scott Morrison at Monday’s announcement about new cancer drugs on the PBS. Photo: AAP

While there has been less detail than usual revealed before this year’s budget, the Coalition has confirmed it will hand down the first surplus budget in more than a decade, achieved through a revenue bonanza underpinned by strong company tax receipts on the back of strong resources prices and under-spending on disability services.

Finance Minister Mathias Cormann has also all but confirmed the budget will also include extra personal income tax relief. It is just uncertain whether this will be an entirely new range of cuts targeting low- and middle-income earners, or involve bringing forward the cuts already legislated to begin in 2022.

But Mr Frydenberg’s first budget could also be his last – and any commitments might be short-lived. Labor has promised to overwrite much of the budget within months if it wins the election.

Shadow treasurer Chris Bowen has already promised another mini-budget by September if Labor – as is widely expected – wins the election.

“If we win, we will bring down a major economic statement in the third quarter of the year, which will in effect be the first budget of a Shorten Labor government,” he told ABC’s Insiders on Sunday.

WHAT TO EXPECT

TAX

* Tax relief, either a bring-forward of the July 2022 income tax cuts, on top of those already starting on July 1, as part of an already-legislated $144 billion plan

* Possible improvements to tax offsets for low-income earners

* Crackdowns on welfare cheats and tax dodging by agencies

* Instant asset write-offs for small businesses (with turnovers of less than $10 million) extended to June 2020 and boosted from $20,000 to $25,000

ECONOMY

* Better-than-expected surplus for 2019-20 (MYEFO: $4.1 billion in 2019/20)

* 3 per cent growth for 2019-20 (MYEFO forecast)

* Migration cap to be reduced to 160,000 from 190,000

* Expectation of a “stimulus” worth about $6 billion

ENERGY

* Energy bill rebates of $75 for singles and $125 for couples designed to help almost four million people pay energy bills

* $10 million business case for energy projects in north and central Queensland, alongside a shortlist of 12 further power projects which could be underwritten

* $2 billion for Emissions Reduction Fund, now called the Climate Solutions Fund

HEALTH

* $200 million to reduce out-of-pocket costs for scans such as ultrasounds and X-rays

* $62 million plan over four years for GP, emergency care and specialist services in rural areas.

* $32.6 million will see breast cancer patients save up to $1500 per scan

* $496 million for Victorian cancer research, services and facilities

BANKS

* $600 million boost for financial regulators ASIC and APRA to deal with banking royal commission fallout

Mr Morrison is expected to call an election for May 11 or 18, within days.

-with AAP

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