ADIA is the peak business organisation representing manufacturers and suppliers of dental products. Our vision is for an industry that empowers oral health professionals to advance the health and wellbeing of all Australians...................... — ADIA Strategic Plan

2018 Budget — Fiscal strategy and outlook

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The 2018-19 Budget shows a further improvement in the fiscal position across the forward estimates and the medium term. The expected underlying cash balances for 2017-18 and 2018-19 are the strongest since the Global Financial Crisis (GFC).

The Government’s fiscal management is helping to return the budget to balance in 2019-20 and deliver sustainable surpluses from 2020-21, as previously projected, while also providing tax relief. Whilst larger surpluses could be achieved by not constraining tax revenue, the Government has formalised its tax-to-GDP cap of 23.9 per cent as part of its fiscal strategy to support stronger economic growth.

In addition, the budget balance is expected to move into structural surplus predominantly as a result of reductions in structural payments.

The underlying cash balance is expected to improve from a deficit of $14.5 billion (0.8 per cent of GDP) in 2018-19, returning to a budget balance of $2.2 billion (0.1 per cent of GDP) in 2019-20. Sustainable surpluses are projected from 2020-21, reaching $16.6 billion (0.8 per cent of GDP) in 2021-22. The underlying cash balance is projected to remain in surplus over the medium term, reaching a projected surplus exceeding 1 per cent of GDP by 2026-27.

The payments-to-GDP ratio is expected to fall from 25.4 per cent in 2018-19 to 24.7 per cent in 2021-22, bringing it below the 30 year historical average of 24.8 per cent.

Net debt is expected to peak at 18.6 per cent of GDP in 2017-18, before turning the corner and declining in each year of the forward estimates and the medium term, falling to 3.8 per cent of GDP by 2028-29.

The Government remains committed to its medium-term fiscal and budget repair strategies. This Budget maintains fiscal discipline, delivers sustainable surpluses, strengthens the Government’s balance sheet, lowers the tax burden and continues to redirect government spending to quality investment to strengthen the economy.

Member Engagement —

ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to ensure that the initiatives within the 2018 Australian Government budget support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-TCPC Trade & Commercial Policy Committee.

Further Information —

To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at canberra@adia.org.au or by telephone on 1300 943 094.


This information is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, other images and where otherwise stated.

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