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Economy-wide modelling for the 2016-17 Budget

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The Government’s tax and superannuation plan announced in the 2016-17 Budget includes a number of changes to tax and superannuation.  It is estimated that these changes will permanently lift the level of GDP by just over one per cent in the long term.

This note describes how the GDP impacts of the significant tax measures were estimated using Treasury’s economy-wide model and presents the results of the external modelling.