Tax cuts and infrastructure spending are the headline items in this year’s Budget, but there is plenty more.
For example, small businesses earning less than $50 million a year will benefit from a fall in the tax rate to 25% and they will be able to write off assets up to $30,000. Middle income earners will benefit with a tax cut of $550. No tax cuts for higher income earners though.
The plans within this Budget will only happen if the Coalition is re-elected in the upcoming election. For more detail on the Budget and what it all could mean for you, here is a breakdown of the details.
The Good News
If you are after tax cuts, then great news! This will be happening! For everyone who earns between $18,200 and $126,000 Australian in a year, a tax cut in some form will be given. Small business will also be chiming in on the cuts and tax breaks! The government is looking to bring down the tax rates for companies that turn over less than $50 million Australian in 2020-21.
If the morning commute to work has gotten you annoyed with train delays and cancellations, you may be in luck as a lot of your taxes will also go towards building faster railways, in particular from Geelong to Melbourne. There will also be a few more fast rail way projects in the making: from Sydney to Wollongong, Sydney to Parkes, Melbourne to Albury Wodonga, Melbourne to Traralgon and Brisbane to Gold Coast.
Sydney-siders do not fear, funding will also be provided for the North-South Rail Link in Western Sydney.
Hate taking public transport and much prefer driving instead? A lot of your tax money will also be going to fund and improve Australia’s congestion problems (if you’ve driven in Sydney during non-rush hour, you will know what we mean). Prices Highway is looking for a makeover of $1.6 billion Australian to be extended to the M1 in New South Wales, $800 million Australian will go to the Gate Motorway in Queensland and $1.5 billion Australian to the North-South Corridor in South Australia.
Local councils will also receive a Road Safety Package worth $1 billion Australian to maintain and repair roads (say good-bye to some of your favourite pot holes!).
Those who have families will also see school funding get increased by 63 per cent over the next ten years and approximately $30 million will be given directly to schools for equipment and facility purchases.
With the heart-wrenching reports of the drought last year for our Aussie Farmers sees this year that approximately $6 billion Australian will be spent to help farmers who have to struggle with these natural disasters.
As scammers and scams are now on the rise and we have even written about this here previously, the government will be looking to spend approximately $34 million Australian of taxpayers money to heighten and strengthen security and cyber security.
For those worried about bad bank behaviours and dodgy financial regulators, the government plans on boosting the funding for a little over $600 million Australian in response to the banking royal commission.
Those with disabilities will see the government provide over $500 million Australian over five years to establish a royal commission to examining violence, abuse, neglect and exploitation of people with disabilities.
The Not So Good News
As with all highs, there will be lows. To start, for students, while University funding will always been on the increase, ultimately, the government is shifting to focus less on university students and rather more on vocational education and training (which isn’t necessarily bad news for those that do not wish to attend University).
While the budget for congestion on roads and faster trains is a great initiative, this doesn’t solve the existing problems of local trains, in particular for Sydney where there are often high volumes of delays and cancellations with trains for no particular reason. The suggestion of the funding to create faster railway projects also doesn’t guarantee that these will be built.
If you are looking to immigrate to Australia, you may have to wait slightly longer as we see that permanent migration numbers will be reduced from 190,000 to 160,000 per year. This is in order to reduce the pressure and congestion on our popular cities and give a chance for our infrastructures to catch up to the demand.
If you are seeking or on welfare at the moment, then unfortunately there will be no payment increases to the Newstart programme. Job seekers on welfare will also be encouraged to take up tougher labour jobs such as fruit picking with the expansion of the Harvest Labour Services. Further to this, while there will be one-off energy assistance payments taking in effect for the 3.9million Australians that are struggling with their power bills, those on the Newstart programme will not be receiving any.
For those that care about the environment and our animal friends, the government will be addressing the matters of climate change by introducing at $3.5 Billion Australian package to be delivered over the next 15 years,while endangered species protection will receive about $25 million Australian a year to help provide grants for protection projects, waste reduction, as well as other environmental issues. This has come under some criticism that it may not be fast or adequate enough in terms based on how quickly the world is changing right now.