FOR PRESS 17 AUGUST 1977
THE 1977-78 BUDGET
The 1977-78 Budget underlines the Government's philosophy,
and its resolute approach to the tasks of economic and social
rehabilitation to which it is committed. It is a Budget of
responsibility and imagination, of achievement and
promise, of challenge and opportunity.
Whilst maintaining the attack on inflation, this Budget recognises
that the restoration of prosperity and the creation of more
jobs requires above all a resurgence of the confidence of
Australians in their future and in the future o: E Australia.
The Government believes that the new and simplified personal
taxation arrangements provide, in the most positive and
dramatic fashion, the opportunity for this resurgence
of confidence.
Reductions in personal tax within a responsible budgetary framework
have been made possible by a continuing firm hand on Government
expenditure. As a result of rigorous restraint in order to avoid
unnecessaryor less essential spending, we have been able to
achieve our objective of containing total expenditure within a
" izero real growth" target. Yet we have again provided for large
increases in payments to State and local government;
we have maintained the vital social reforms introduced last year
notably the greatly improved arrangments for assistance to
families by family allowances and the full and automatic
adjustment of pensions and benefits for inflation; and we are
giving top priority to programmes for relieving unemployment,
especially among the young.
The tax reductions which firm control of Government spending have
made possible mean that, within six months, there will be
larger pay packets for all; from then on, the marginal
" tax bite" for 90 percent of taxpayers will in no case exceed
32 cents in the dollar.
By this single decisive stroke of policy, the Government is able
to provide all Australians with the assurance that endeavour will
be encouraged, that skills will be worth acquiring, that
initiatives will be worth taking and that effort will be fairly
rewarded. The Government believes that most people want greater freedom
to make their own decisions about working, spending and saving. / 2
2.
They do not want their decisions to be warped by crippling
taxation. That is why we promised to reform the personal tax
system. It is a matter of great satisfaction to us that firm
and steady policies have enabled us to take this major step
towards restoring incentives and getting Australia on the move.
The Government is confident that Australians will respond to
the challenge and that the revival in spirit will begin today.