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Treasurer refuses to rule out further tax cuts, government eyes first surplus in a decade

The Federal Treasurer is refusing to rule out further tax cuts amid a strengthened budget position.

The Mid-Year Economic and Fiscal Outlook (MYEFO) was handed down today, with the government forecasting a $4.1-billion surplus for the next financial year.

The anticipated surplus would be the first in over a decade.

The strong result is being attributed to strong job numbers, with the government receiving more in income and company tax receipts.

The government is also anticipating a smaller deficit of $5.2 billion.

Federal Treasurer Josh Frydenberg tells Ross Greenwood the strong budget outlook isn’t about luck but rather “disciplined decision-making”.

“That is the product of hard decision making on the spending side and on the revenue side over the last five-and-a-bit years.”

Close to $10-billion has been put aside by the government for “decisions taken but not yet announced”- money that could be used to make spending commitments before the May election.

Mr Frydenberg hasn’t ruled out further tax cuts and says the government has to “make future decisions and future announcements about matters in relation” to the allocated funds.

“What I can tell you is we’re committed, Ross, to lowering taxes and ensuring proper expenditure.”

Despite the Coalition still lagging behind in the polls, Mr Frydenberg says between now and the next election the debate will focus more on the economy.

“Things tighten up as people start to think about the consequences of their decision at the ballot box.”

Click PLAY below for the full interview with Treasurer Josh Frydenberg

Federal Finance Minister Mathias Cormann tells Luke Grant they’re “confident” they’ll get the budget back into the black next year.

Labor claims this is because of positive, global economic conditions, but Minister Cormann says there’s more to it than that.

“It has taken us two terms to fix the mess Labor has made to our budget,” he tells Luke.

“The economy today is stronger, the outlook is better, the employment growth is better, which means young people, in particular, have better opportunities to get a job.”

Click PLAY below for the full interview