Here are the winners and losers of this year’s federal budget:
Future generations – The budget forecasts a return to surplus of $7.1 billion by 2019-20, after more than a decade of deficits since the global financal crisis.
Individual taxpayers – The budget promises a $302 billion package of personal tax cuts to be rolled out over the next decade.
Middle and low-income earners – Middle and low-income tax earners will get a tax offset of up to $1080 for single earners or up to $2160 for dual income families.
Small business owners – The small business instant asset write-off threshold will be lifted to $30 000 and expanded to include businesses with a $50 million turn over. This change applies from 7:30 AEDT on Tuesday night to June 30, 2020.
Small business tax cut – For businesses with a turnover of less than $50 million a year their tax rate will be lowered to 25 per cent by 2021-22.
Older Australians – $282 million for 10,000 home care packages to help older people who want to stay in their homes.
Infrastructure – The budget includes a record $100 billion in funding for road and rail projects around the country over the next decade.
Patients – Extra $7.7 billion over three years to 2022-23 for better access to MRI scans for patients with breast cancer, and $1.4 billion over five years from 2017-18 for new Pharmaceutical Benefits Scheme listings, including medicines to treat spinal muscular atrophy, breast cancer, refractory multiple myeloma, relapsing-remitting multiple sclerosis and a new medicine to prevent HIV.
There are more winners than losers in this year’s federal budget. Dominic Lorrimer
Medical research future fund – $ 5 billion will be granted to the fund, including $614 million for rare cancers and diseases, $220 million for cardivascular health, $605 million for clinical infrastructure and $150 million for stem cell research.
Mental health – $737 million will granted over seven years, including $461 million for helping young people by reducing waitlists and addressing youth suicide.
Drug addicts and their families – Through it $337 million drug strategy, the Government is hoping to target the harmful effects of ice, alcohol, tobacco and opioids by increasing access to services outside metropolitan areas, funding local family drug support services and include measures to target opioid use.
Vocational education – The sector will receive an extra $525 million.
Parents/children – Preschool education will get a $453 million boost for the 2020 school year.
Regional students – $93.7 million will be granted over four years for scholarships to attend regional universities or vocational education.
Regulators – Gain $600 million in funding for the banking royal commission fallout.
Multinationals – An extra $1 billion will be granted to the ATO to hunt down multinationals not paying their tax. The government predicts this measure will raise $4.6 billion.
Accountants, consultants – The tax crackdown will focus on intermediaries such as tax advisers and agents.
State governments – Are forecast to be the “hidden losers” from a $10 billion downturn in GST revenue triggered by the property downturn. GST receipts are tipped to be $10.3 billion lower over the four years to fiscal 2023.
Start ups – The research and development tax incentive will be cut by a further $1.35 billion over the budget forward estimates in a blow to start ups.
Welfare rorters – The income of those who receive Centrelink benefits and work part time will be scrutinised by the ATO and the Department of Human Services. The government says this will save the commonwelath $2.1 billion over five years.
This article was originally posted on www.afr.com on 2/4/19 by author Elouise Fowler.