WORKERS will get immediate tax relief with the promise of more to come if the coalition wins the election, as a booming economy sends the budget back to surplus a year early.
Treasurer Scott Morrison is riding record job growth and company tax revenue to support his $140 billion plan to put hundreds of dollars a year back in taxpayers’ pockets.
“This is not spending or a giveaway. We are simply enabling Australians to keep more of what they have earned,” he said in his budget speech in Canberra on Tuesday.
The tax cuts start at $200 a year for those in the lowest bracket, rising to $530 a year for those earning up to $90,000, from July 1 this year.
“Anyone who thinks that doesn’t matter clearly is not in touch,” Mr Morrison told reporters.
So what does the Federal Budget mean for you?
Here’s everything you need to know:
It’s all about the next election with
– Tax relief to encourage and reward working Australians.
– Support for business to invest and create jobs.
– Guaranteeing “essential” services.
– Keeping Australia safe.
– And the government living within its means.
Budget deficit of $14.5 billion in 2018/19 with a small surplus of $2.2 billion forecast for 2019/20.
Economic growth (GDP) of 3.0 per cent through to 2021/22.
Inflation of 2.25 per cent rising to 2.5 per cent in 2019/20 and beyond.
Unemployment rate of 5.25 per cent falling to 5.0 per cent in 2021/22.
Government spending to dip to 24.7 per cent of GDP by 2021/22.
Taxes to GDP ratio to remain under the self-imposed limit of 23.9 per cent.
Net debt to peak at 18.6 per cent of GDP.
Conservative estimates taken on commodity prices such as iron ore and coal, but exports rising strongly.
Multi-year plan to make personal income tax lower, fairer and simpler.
Top tax threshold will increase from $87,000 to $90,000 – meaning 94 per cent of Australians will pay no more than 32.5 cents in the dollar.
Those earning $37,000 or less will save up to $200 on tax.
Those earning more than $37,000 up to $90,000 will save up to $530 on tax.
Little tax relief for those earning over $125,000 until 2024/25 when the 37 per cent tax bracket is abolished.
Relaxing the Parental Income Tax for access to Youth Allowance by $10,000 per annum per child.
Tax changes to cost $13.4 billion.
SUPER AND PENSIONS
Banning exit fees on superannuation accounts when people change funds.
Those under 25 won’t be forced to pay for life insurance as part of super fund.
Pensions Loan Scheme opened to all older Australians without impact on pension or benefits.
Expanded Pension Work Bonus will allow pensioners to earn an extra $1300 a year.
Wage subsidies of up to $10,000 for employers who take on older workers.
Skills and Training Incentive to allow mature age workers to update their skills.
Increase in the number of home care places by 14,000 over four years at a cost of $1.6 billion.
$146 million to improve access to aged care services in rural, regional and remote areas.
$83 million for mental health services in residential aged care facilities to help combat depression.
Creation of a national online register for enduring powers of attorney.
Government to fund targeted programs run by local sporting organisations and community groups to encourage older Australians to remain physically active.
Instant asset write off for business with a turnover up to $10 million extended to purchases up to $20,000.
New anti-phoenixing measures to make sure small businesses don’t get ripped of by those trying to avoid paying bills.
Extra $250 million for the Skilling Australians Fund.
Changing the tax treatment of stapled structures to remove loophole that gives foreign companies a tax break over Australian companies.
Tightening thin cap rules to stop multinationals from fiddling with debt to reduce their tax liabilities.
Discussion paper to come that will explore options for taxing digital business in Australia.
Black Economy Taskforce recommendations will bring in $5.3 billion over the next four years by targeting sectors that under report income.
MEDICAL AND HEALTH
The new five year hospitals agreement with States and Territories will deliver $30 billion in additional funding.
21st century medical industry plan to create more jobs in the sector.
$500 million over 10 years for the Medical Research Fund.
Extra $1.4 billion for listings on the PBS, including treatments for HIV, spinal muscular atrophy, breast cancer, refractory multiple myeloma, and relapsing- remitting multiple sclerosis.
$125 million over 10 years from the Medical Research Future Fund for Lifeline Australia and Mental Health Research.
$20.9 million for tests to ensure that debilitating conditions are picked up early.
$154 million to promote healthy living, including $83 million for existing community sport facilities and to expand local and school sporting programs.
Increased financial support for the Royal Flying Doctor Service.
$2.4 billion to be invested in public technology infrastructure including super computers and satellite technology.
Refocusing the R&D (research and development) tax incentive to support companies that invest in R&D.
Additional funding to protect farmers from pests, disease and weeds.
National energy guarantee to see annual power bills fall by an average of $400 a year from 2020.
Emission reduction target to remain at 26-28 per cent.
In addition to the 10-year $75 billion infrastructure projects already announced, the government will create a $1 billion Urban Congestion Fund to improve traffic flow and safety at state level.
And a $3.5 billion for a Roads of Strategic Importance initiative upgrading key freight routes.
$550 million will be spent to address remote housing needs in the Northern Territory.
Needs based funding for schools to deliver $24.5 billion more over the next 10 years.
Schools to receive $18.7 billion, with a legislated rise to around $30 billion in 2027.
National Schools Chaplaincy program extended with a focus on anti-bullying.
Universal access to early childhood education extended for a year costing $440 million.
$50 million to upgrade security infrastructure at 64 regional airports.
$122 million to enhance screening of inbound air cargo and international mail.
$122 million to increase border force capability at nine domestic and international airports.
$160 million to help agencies fight crime and prevent terrorism, including $68.6 million to prevent child exploitation and abuse.