In order to repair the budget and deliver important structural reforms that will facilitate future growth in living standards, we are asking all Australians to contribute business, state and local governments, high income earners, families, seniors and individuals.

Business welfare stifles innovation and enterprise. This Budget continues the evolution of industry assistance away from corporate welfare towards programmes that facilitate innovation and self reliance. Existing industry assistance programmes will be significantly reduced and reshaped.

In addition to major structural budget reforms to health, welfare and higher education, the Government is also implementing some time limited measures to deliver budget repair that is fair and equitable.

Indexation for a large number of payments and programmes will be paused for two to three years. These include eligibility thresholds for transfer payments, thresholds for the Medicare Levy Surcharge and Private Health Insurance Rebate, and Medicare Benefits Schedule fees (except General Practitioner Services).

As a group, lower income households will continue to receive significant transfer payments.

Higher income earners, who already pay significant amounts of tax, will contribute further through the Temporary Budget Repair Levy.

Public hospitals and schools funding paid to the States with borrowed money will be placed on a more sustainable footing.

The indexation of Official Development Assistance funding, Local Government Financial Assistance Grants, and 112 government programmes will be temporarily paused.

Working age families and singles in 2016-17

Note: Families are sorted into lower, middle and higher income groups based on their disposable income adjusted for family size.