The Turnbull Government is sticking to its plan for a stronger economy which will create more jobs and opportunities for Australians.
We are providing tax relief to encourage and reward working Australians, backing businesses to invest and create more jobs for Australians, continuing our $75 billion investment in transport infrastructure and building a smarter economy to allow Australians to plan their future with confidence.
A stronger economy supports a stronger budget, which guarantees funding for essential services, supports lower taxes and allows the Government to back new infrastructure investments across Australia.
Lower taxes to support growth
The Government is implementing a responsible and fully funded seven-year Personal Income Tax Plan to make personal income tax in Australia lower, fairer and simpler. Without this change we are at risk of entering the next decade with a tax system that drastically penalises Australians for earning more.
This plan prioritises lower and middle income earners who will be provided with tax relief of up to $530 a year through the introduction of a new non-refundable tax offset. The plan will also combat bracket creep and simplify and flatten the system by abolishing the 37 per cent tax bracket entirely from 2024-25. The plan delivers a tax system that encourages Australians to get ahead. By 2024-25 around 94 per cent of taxpayers are projected to face a marginal tax rate of 32.5 per cent or less.
The Government is continuing to back businesses to invest and create jobs. We have legislated tax cuts for around 3.3 million small and medium Australian businesses employing 6.8 million workers and are giving small businesses access to the $20,000 instant asset write-off for a further 12 months, creating more opportunities for investment and replacing or upgrading assets.
This is part of our commitment to the full Ten Year Enterprise Tax Plan, which will see the company tax rate reduced to 25 per cent over 10 years for all businesses, ensuring Australian businesses can remain competitive in the global economy.
Ever higher taxes on businesses and individuals will only strangle economic growth and opportunity for all Australians.
$75 billion infrastructure investment
The Government continues to implement its ten year $75 billion investment in transport infrastructure.
This includes investing $24.5 billion into new major transport projects and initiatives in this Budget that will benefit every state and territory, such as the Melbourne Airport Rail Link, the Bruce Highway, Perth Metronet and Pacific Highway Coffs Harbour Bypass. These projects will add to the more than 500 major projects the Government has funded across Australia since 2013.
These investments in national priority road, rail and public transport projects will bust congestion, improve safety, connect people to jobs and streamline freight delivery.
We are also establishing the $3.5 billion Roads of Strategic Importance (RoSI) initiative to upgrade key freight routes to improve road reliability and better connect key sectors, such as agriculture and mining, to export markets. It will also better connect communities to essential services, such as health and education.
A $1 billion Urban Congestion Fund will also be established to bust congestion in cities and help get people home sooner.
Building a smart economy
A new 21st Century Medical Industry Growth Plan will deliver $1.3 billion to fund revolutionary genomic research projects investigating medicines that can be tailored to individual patients, clinical trials of new drugs and development of new medical technologies.
We will back in Australian scientists through the largest single investment of the Medical Research Future Fund to date of $500 million over ten years for Australia to become a world leader in genomic research, building another strong and competitive industry that will generate income and jobs for Australians, from scientists in research labs to workers making new medical equipment and devices on shop floors.
A $2.4 billion investment to boost Australia's research, science and technology capabilities will help build the industries and jobs Australia needs to compete internationally, build a smarter economy and give Australians the skills they need to prosper.
Our investment includes boosting Australia's public technology infrastructure such as world class satellite imagery, boosting our research in artificial intelligence and more accurate GPS to improve transport logistics, marine navigation and surveying.
Further actions to help Australians take advantage of new opportunities include the establishment of an Australian Space Agency; supporting Australian innovation in Asia; making it easier for small and medium enterprises to grow, export and increase jobs; and giving consumers more power over their data with the new Consumer Data Right.
The Government is also backing our farmers by enhancing water infrastructure, upgrading GPS capabilities for regional Australians and increasing funding to manage and protect against pests, weeds and disease. The Government will also provide additional agricultural trade experts to help farmers export Australian products to the world.
We are also investing more in building the capabilities of Australian workers by providing an additional $250 million to the Skilling Australians Fund.