siin017 Fereral budge 2017: Surplus, AAA rating at rsk in homebuyer-rlenaly budget News Sport Business World ar .2027-12:00861 SUBSCRIBE | LOGIN / SIGNUP Entertainment Lifestyle Travel SAVE PRINT. LICENSE ARTICLE Federal budget 2017: Surplus, AAA rating at risk in homebuyer-friendly budget Q remain First home buyers would be able to withdraw money from superannuation for a deposit on the condition they put it back later and save more quickly for deposits by having their pay directed into superannuation-like accounts under proposals being considered for next Tuesday's budget, Scott Morrison and Malcolm Turnbull's second budget is set to forecast a surplus in 2020-21 using a new measure of budget balance called “net operating balance" that will exclude extra spending on infrastructure, however Australia's preeminent budget forecaster questions this, saying it won't return to surplus for the foreseeable future, The month of budget rabbits With a month eft forthe final push and shove an lebaying that goes into formulating a budget Scott Morrison has to pul several rabbits out ofhishat. 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Faves Get Raises MOST POPULAR ‘Don's cry poor’: Unis to have budgets cut, student fees to rise 2 Surplus, AAA rating atriskein homebuyer-friendly budget 3 Ignore performance reviews, PRand ditch HR: Words of wisdom from Computershare founder Chris Mortis 4 Bans! engine rooms face tougher arin 5 Aircasker and unions make lanémark agreement to improve pay ates and Fipuhwwrw smh com aubusinessfedora-budgeUedera-budget-2017-suplus-aaa-alinga-risk:-in-nomebuyertendly-buigt-20170430.quvpry Him 6srv2017 Federal aes 2017 Supls, ANA rating at riskin homebuyer-Fienly budget FOLLOW BUSINESSDAY Deloitte Access Economics, the so-called "treasury in exile" run by former budget official Chris Richardson, says that forecast looks doubtful because it assumes tens of billions of dollars of cuts in projected grants to the states will stay in place and that the Senate will pass cuts it has shown no interest in passing. FOLLOW SMH "The budget simply won't whirr back into surplus," he said ahead of, the publication of the Deloitte Access Budget Monitor on Monday. Pushing up prices may help home buyers Budget reporting change sparks debt spree concerns Any oss of Australia's AAA creit rating woul bea "ax on grow It would penalise the parts of the economy that needed capital to grow. Labor's finance spokesman Jim Chalmers said the government should lock in the AAA rating by ditching their "unaffordable tax handouts for big business" and adopting Labor's proposed cuts to negative gearing and capital gains tax concessions. Mr Morrison said if Labor was serious about risks to the AAA rating they wouldn't have proposed increases in spending at the last election and stood in the way of the Government's measures to strengthen the Budget. The budget would boost revenue by creating economic growth that would mean "higher wages and more hours of work for Australians" oft Morizon's cond budget, tobe handed down nest Tussay, see to forecast a surplus in 2020- 2, Phot: Louie Kenney ‘Mr Richardson said the economy was healthy, and that would boost, the budget outlook for the next financial year. But beyond that, projected spending would weigh it down. Hawise nradistina 2 emallar than mravinuely avnartad daficit af 17 © Fapstwwrsmh.com auvbusinessfederal-budgeVederal-budgel-2017-suplus-aaa-alingalrstin-homebuyerrendy-buget:20170130-gwpry mlsiino17 Fererl badge 2017: Surplus, AAA rating at rsk in homebuyer rlenaly budget ic was pleusung ¢ suleues Was pievivusty capecicu ueLiie UL 92/9 billion in 2017-38, followed by larger than expected deficits of $20.9 billion in 2019-20 and $14.2 billion in 2019-20, (Chis Richardson says surplus forecast looks doubtful because it assumes tens ofbilions of dolars of ‘us in projected grants to the states wlstay in place, Photo: AAP The new measure to be highlighted on budget night, "net operating balance" would remain in deficit at $5.5 billion by 2019-20, which is the end of the Deloitte Access forecasting horizon, "A large chunk of what they say will be an improvement in the deficit is the $80 billion cut in projected grants to the states for health and ‘education announced in the 2014," Mr Richardson said. "We know it is politically unsustainable because just before last year's election the prime minister toned some of it down. I am not saying the states can't budget better, but I am saying the Commonwealth straitjacket is unrealistic." “As traditionally measured, the budget won’t whir into surplus for the foreseeable future.” Deloitte Access Economics director Chris Richardson "As a nation, we need to have a serious conversation. We've voted ourselves extra spending but not a way to pay for that spending, The government's approach seems to do little other than promising that she'll be right." One of the schemes being considered for first homebuyers would allow the diversion of pre-tax income into superannuation-style deposit-saver accounts that would be lightly taxed or matched with government contributions, along the lines ofa little-used Labor scheme axed by the Coalition after taking office, Another would allow the withdrawal of superannuation savings for home deposits on the condition they were replaced later after the homeowners' finances improved pstww.smhcom.aurasines ederal-budgeedeal-busget-2017-surplus-aaaatirg-a-rskin-homebuyertendy-bucget20170430-qvvpry Hnsiin0t7 Fereral budge 2017: Surplus, AAA rating at rsk in homebuyer-rlenaly budget (On Sunday backbencher John Alexander, who chaired the parliament's inquiry into housing affordability, continued to push his idea of allowing superannuation funds to take equity in houses, saying: “When's the penny gonna drop? We actually have a tax- effective savings system: it's called superannuation." Deloitte Access is forecasting a lift in economic growth to 3.5 per cent in 2017-18, followed by 3 per and 2.6 per cent in 2018-19 and 2019-20. Itis forecasting boost in company tax revenue of $11.7 billion in 2017- 18 followed weaker growth of $3.8 billion and $4.4 billion in 2018-19 and 2019-20. - with James Massola, Adam Gartrell Follow Peter Martin on Twitter and Facebook. RECOMMENDED Scott Morrison orders \ major review of GST carve se foo) g! | Peter Fitzsimons: Does al | Sener make. ‘Women Share The Best Drunken Experiences, Sydney solicitor struck off News ‘After the flashy announcement, here's, O comments Now User? 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