Written by Peter CarterMay 11, 2017
The new federal budget has sparked discussion all over the country today – but who is coming out on top?
Schools; There’ll be more Commonwealth funding per student for most schools. The Federal Government will give schools an extra $18.6 billion over 10 years. The Government says it will standardise school funding, but as part of that about two dozen schools will lose Commonwealth funding and about 300 more won’t receive as much as they expected.
NDIS; The National Disability Insurance Scheme will be fully funded. The top-ups for the funding coming from an increase in the Medicare levy.
Older Australians; Those that lost their pensioner concession card as a result of the assets test will have their benefit restored. Older Australian’s will also get a one-off $75 power bill rebate and those that downsize their homes may put up to $300k of the proceeds into their super fund.
Health; Additional medicines added to the Pharmaceutical Benefits Scheme and a lift on the freeze on Medicare rebates over the next three years means less patients are out of pocket.
Farmers; Farmers are said to benefit from an inland rail network to move their goods quickly and cheaply between Brisbane and Melbourne.
Small Business; Instant tax write-offs stay for another year to help improve cash flow with businesses that turn over less than $10 million each year, to immediately write off expenditure up to $20,000. However, some small businesses may also be hit with a new foreign worker levy.
First home buyers; First home buyers will now be able to contribute their superannuation to help them save for a house deposit. From July 1, 2017, individuals can make voluntary contributions of up to $15,000 per year and $30,000 in total. The contributions are taxed at 15 per cent and along with deemed earnings, can be withdrawn for a deposit. Withdrawals will be taxed at marginal tax rates less a 30 per cent offset and allowed from July 1, 2018.
Childcare; The Child Care Subsidy will ensure families on low to middle incomes of $185,710 or less (in 2017-18 terms) who need to use more child care will not face an annual cap. An annual cap of $10,000 will apply to families earning more than $185,710 (in 2017-18 terms).
Taxpayers; With the Medicare levy increasing from 2% to 2.5% of taxable income, taxpayers are set to fork out more. The increase is said to help fund the $22 billion National Disability Insurance Scheme and avoid future budget black holes. This is due to start on July 1, 2019.
Banks; The big five banks will see a 0.06 per cent levy starting on July 1. However, these costs will most likely be passed on to customers and other stakeholders.
University students; University students will see a $2000- $3600 fee increase for a four-year course. The income level at which you must start repaying your HECS debt will also be reduced from $55,000 to $42,000.
Foreigner Investors; Foreign investors will be penalised with an extra charge for properties left vacant and will pay capital gains tax on their personal home.
Non-vaccinators; The family tax benefit will be reduced by $28 per fortnight for those parents that refuse to vaccinate their children.
Welfare recipients; Random drugs will now be a requirement for some welfare recipients. Job seekers who test positive to drugs will have their payments quarantined.