Aims to increase growth through an expansionary stance - reduced taxation and increased surplus to stimulate the economy. There is a deliemma, the economy has a less than projected growth rate so far, but it is also close to its operating capacity without causing inflation.
Aims to reduce unemployment - note that the economy is near its natural rate of unemployment, so the main type of unemployment is hidden unemployment (dole bludgers, single mums etc...). Have a look at those government policies which aims to reduce benefits and increase incentives these people back into the work force.
Distribution of Income - the tax cuts will likely to increase the gap between the rich and poor. The government basically diminished the role of automatic stablisers in the process as well - progressive tax system is diminished as the taxes on the rich are reduced & welfare payments are reduced to reduce dole bludgers.
Inflation - possibly increase inflation, Gittens mentioned that the increase in TWI combined with this stimulus will see the economy operating closer to the natural rate of unemployment, thus presenting an opportunity for inflation to occur. The RBA has a really itchy trigger finger with its pre-emptive monetary policy, any increase in inflation would likely to result increases in interest rates.
Hope that helps.
