Budget 2018: Your two-minute guide

Treasurer Scott Morrison has kicked off the Coalition’s re-election bid, with the promise of tax cuts and a boost for older Australians in the Federal Budget.

Awash in rivers of gold, Mr Morrison’s third Budget is aimed squarely at next year’s election.

It promises a modest Budget balance of $2.2 billion in 2019-20 and a return to a surplus of $11 billion in 2020-21.

The bottom line has been boosted by a huge $20 billion increase in revenues since the mid-year Budget update in December.

TAX CUTS

The centrepiece is tax reform under a so-called “seven-year plan”.

But there’ll be first up tax relief for low and middle income earners.

Those earning up to $37,000 will get tax cuts of $200.

If you earn between $37,000 and $90,000 you’ll be $530 a year better off.

A couple on average wages will get a $1000 boost.

“This is what can be responsibly afforded while keeping the Budget on track,” Mr Morrison told Parliament.

The Treasurer says the seven-year overhaul, promising to essentially end “bracket creep”, aims to make the tax system simpler and fairer.

The changes will cost the Budget $13.4 billion over four years.

OLDER AUSTRALIANS

The other big political carrot is a boost for Australia’s ageing population.

There’ll be an extra 14,000 home care places over four years, at a cost of $1.6 billion, to allow the elderly to stay in their homes.

Among other initiatives, the Pension Work Bonus will be increased to allow those on the pension to earn an extra $50 a fortnight without losing benefits.

There’ll be more for employers to help the over 50s start a new career and the Pension Loans Scheme will be expanded.

SUPERANNUATION

There are changes too to superannuation, with the Tax Office to find and return lost super for you.

There’ll be no exit fees and those under 25 years or with low balances will no longer have to pay for life insurance.

CRACKDOWN ON THE 'BLACK ECONOMY'

Promising the government will live within its means, Mr Morrison promised a crackdown on the use of research and development incentives and closing a loop hole on tax breaks for foreign companies.

The government is also clamping down on the “black economy”, including banning cash payments over $10,000.

"This will be bad news for criminal gangs, terrorists and those who are just trying to cheat on their tax or get a discount for letting someone else cheat on their tax," Mr Morrison said.

AIRPORT SECURITY

More than $50 million will go towards improving security at regional airports.

Another $122 million will be spent on increasing the presence and capabilities of Australian Border Force and Australian Federal Police officers at nine international and domestic airports.

The same amount - $122 million - will go towards enhanced screening of inbound mail and cargo.

INFRASTRUCTURE

Much of the government’s $24.5 billion spend on new transport infrastructure was announced in the weeks before the Budget, as part of the $75 billion investment over the next decade. 

Victoria will get its long-awaited Melbourne Airport Rail Link at a cost of $5 billion and the $1.75 billion North East Link. 

An additional $3.3 billion will go towards continuing the upgrades of Queensland’s Bruce Highway and $1 billion to the M1 between Brisbane and the Gold Coast. 

The government will provide $971 million to NSW’s Pacific Highway Coffs Harbour Bypass and $400 million to duplicate the Port Botany Rail Line in Sydney.

A further $1 billion is being put towards Western Australia’s METRONET rail package and $944 million for Perth congestion. 

SCIENCE and MEDICAL RESEARCH

Mr Morrison announced a 21st Century Medical Industry plan to grow jobs in the health sector. 

The government plans to use $500 million from the Medical Research Future Fund to focus on genomics – the study of genes and genetic diseases.

The first project under the scheme will be Mackenzie’s Mission, a $20 million trial to screen for diseases including cystic fibrosis, spinal muscular atrophy and fragile X syndrome. 

SCHOOL CHAPLAINCY PROGRAM

The national schools chaplaincy program has had its funding renewed on a "permanent basis", at a cost of nearly $250 million over four years.

The program will include a "special new anti-bullying focus", budget documents state.

JUSTICE FOR MH17 VICTIMS

The Budget allocates $50.3 million over four years to support the Dutch national prosecution of those responsible for the mid-2014 attack on MH17, which killed 38 Australians.

Budget documents say the funding will "meet Australia's share of the prosecution costs and assist family members of the victims participate in the court proceedings".

A 'FAME TAX'

Celebrities will be hit with new rules on their image rights to make sure they're not dodging their income tax.

The "fame tax" will ensure celebrities and high-profile people who license their image rights to other companies pay tax on all the income and other benefits they receive.

Celebrities can currently licence their image rights to a business, which can claim losses on the investment, and then pay just 30 percent tax on the profits.

FREEZE ON ABC FUNDING

The Turnbull government has decided to pause indexation of ABC operational funding, at a cost of $83.7 million from 2019/20.

The national broadcaster will continue to be exempt from efficiency measures being imposed on the public sector.

ABC Managing Director Michelle Guthrie said the cuts could not be easily absorbed.

"The ABC is now more important than ever given the impact of overseas players in the local media industry and the critical role the ABC plays as Australia's most trusted source of news, analysis and investigative journalism," she said.

"Stable, adequate funding is essential if we are to continue to deliver for Australian audiences."

The other public broadcaster SBS has been given an additional $14 million over two years to make up for revenue it lost when laws to ease advertising restrictions failed to pass federal parliament, plus $3 million to help develop local film and television content.