diddly-squat said:

It’s important to remember that $1 out of funding for provide schools doesn’t necessarily equal $1 of free cash flow that can be otherwise saved or spent

it’s not a zero sum game

You’re right. If people pay $1 less in tax, they’re not necessarily going to dash to the shops and spend it.

They may decide to, say, put it in the bank.

Which is not a bad thing, either. There’s been a lot of comment over the years about how Australians are rather crap at building their savings.

If people have an improved bank account behind them, then, while they didn’t spend that $1, they may feel more confident about spending some $ that they get in the near future.

Cash flow can still improve, but perhaps not imediately.