The federal budget beyond the talking points

It’s two weeks until the Turnbull government hands down its 2018/19 budget and with an election looming, there’s sure to be some sweeteners on the cards for voters.

But before we hear more talking points from Treasurer Scott Morrison, we’re taking a look at the government’s justifications for policies that have already made the cut in this year’s budget. We’re asking whether these policies stand up to the economic evidence.

In our first of three Budget policy checks, Saul Eslake answers the question - does Australia need personal income tax cuts?

Also we’d like to hear what spending cuts or funding increases you’d like us to look for on May 8.

Jenni Henderson

Section Editor: Business + Economy

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The key reason for the squeeze on household spending and saving is of course the ongoing weakness in the growth rate of household disposable income. Lukas Coch/AAP

Budget policy check: does Australia need personal income tax cuts?

Saul Eslake, University of Tasmania

The government says personal income tax cuts are needed to provide relief from low wages and high cost of living, but will tax cuts make up for that?

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