How to help tackle the biggest spending issue in 2018-19
How will the federal government spend the money?
What will it look like?
And will it be enough?
The Government’s budget for 2018-2019 is due on March 21.
Here’s a look at what the government wants to spend, what its spending is likely to be, and how much it will cost.
What will the spending look like: Government’s $10 billion package for the first two years will cover a mix of the usual spending categories.
It will include an increase in disability insurance payments to $300 per fortnight for those aged 65 and over, and an increase to disability benefits for the elderly.
This will add $1.8 billion to the $9.2 billion that was announced in March and will cover more than 10 per cent of the budget.
This is the third consecutive year that the Government has committed to this level of spending.
It also includes $100 million to help pay for the relocation of up to 700,000 people from regional areas.
What it will look like in the long term: The first phase of the package will be to fund disability payments for the aged, and for people in regional areas with disabilities, to $600 per fortnight over three years.
It is expected to raise about $1 billion a year in additional funding for disability services over the four-year period.
The second phase is expected, after 2019-20, to increase disability benefits and disability payments by $500 a fortnight to $1,300 per week.
This could be funded by a combination of additional federal spending, the GST, and a cap on the maximum amount that individuals can earn, depending on their income and the duration of their disability.
This money will be spent on the Northern Territory’s Northern Rivers Regional Disability Support Scheme, a regional scheme that is funded by the GST.
The third phase of spending will involve a $10 million increase in the amount that will be charged on the Medicare Disability Allowance.
This amount will be used to fund the Indigenous disability allowance for people aged 60 and over.
This has been promised for 2020-21, but the Government says it will be paid for in 2019-2020, but not by the Government until 2019-10.
What’s the budget expected to cost?
The total budget is estimated to be $10.2 trillion over the next four years, but there is no official cost for the package yet.
This includes a mix from federal, state and territory governments, and private sector contributions.
The cost is also expected to be based on a mix between current government revenue and revenue growth rates, as well as inflation.
However, the Government is also planning to spend a total of $100 billion in 2019 on infrastructure.
Will it be sufficient?
The first round of spending was expected to reduce the deficit by about $10-billion a year over the three years, with some of that being due to the cost of moving people from remote regions.
But that figure is now expected to grow, partly due to an increase for disability benefits, which will result in the additional $1 million per week that was promised in March.
The Government is currently considering the merits of increasing the maximum annual income to $150,000 for those over the age of 65, but this will not happen until 2020-20.
The final stage of spending, to help with the migration of people from rural areas, will also increase the total cost of the welfare package to $10 trillion over four years.
Will the spending increase tax revenue?
The Budget estimates that about $4 billion a week will be raised in federal tax revenues through the additional spending.
But this will be offset by the cost to the economy of the additional funding, as the Government moves to offset the cost from increased spending.
What is the GST?
The GST is a tax that is charged on goods and services.
It helps to finance government services.
The federal government estimates that the additional GST on income above $300,000 will generate about $6 billion a month in revenue.
Will people benefit?
The increase in income tax for the wealthy is expected increase the number of people in Australia over the middle class.
The higher the GST on high incomes, the higher the rate of taxation on those earning more than $150-million.
But it will also reduce the number earning less than $100,000.
How much will it cost?
Federal and state governments are planning to use a mix to deliver the new spending.
A mix of government spending is expected under the Spending Review, with the federal budget expected by the end of 2019-15 to be between $1 trillion and $1trillion.
This compares with the $1tn and $3trillion of spending that was committed to the Federal Budget in the first year of the new Parliament.
But the final budget will be significantly higher, with estimates of $10 to $20 trillion.
The Budget will also include a further $2 trillion in additional federal funding.
This amounts to around $4-5