Turnbull govt pledges tax cuts, cheaper beer in budget

SYDNEY, May 08 (AFP): Australia's conservative government pledged tax cuts for low and middle earners, cheaper beer, and billions of dollars for new roads and rail lines in a pre-election budget Tuesday.

The set of measures are widely seen as the unofficial start of campaigning ahead of national polls due by May next year, with the government working to demonstrate fiscal responsibility while offering some sweeteners.

"The government's plan for a stronger economy will put more money back in the pockets of Australians, create more jobs, continue to guarantee essential services and keep Australians safe," said Treasurer Scott Morrison. He added that this would be done "while ensuring the government lives within its means".

Morrison projected a budget deficit of Aus$14.5 billion (US$10.8 billion) in 2018-19, but said it would return to a slim surplus of Aus$2.2 billion a year earlier than forecast in 2019-20.

Personal tax cuts for those earning less than Aus$87,000 a year were a cornerstone of a budget sold as helping Australians deal with the rising cost of living.

It amounts to barely Aus$10 a week, but that was all the centre-right government, which is lagging the opposition Labor in opinions.