Last year we introduced the budget as a pre-election budget so this year’s we will have to refer to as an "Election Eve” budget. This morning’s breakfast television summed the sentiment of the reception from all the top Australian news agency as "warm”, there were no "cool” receptions, which the Treasurer Mr. Frydenberg would have to be pleased with on his debut budget.
As to whether it is enough to win the Coalition the election, we will all just have to wait and see; the only thing we can be sure of is that, that was the primary focus of this budget. There is certainly plenty of cash being poured into the marginal battleground seats via massive increases to infrastructure stimulus in regional Australia as well as Urban "congestion busting”, relief for disaster affected primary producers as well as the personal income tax cuts being spread across middle income Australia.
Winners:
- Low to middle income earners – an increase to LITO and LMITO for those earning up to $126,000 per annum.
- Road users – particularly in Victoria and Queensland; Urban centres to receive "congestion busting” funds, including $500m for car parking spaces. An additional $3 billion for road projects.
- Civil construction and engineering firms - total nationwide infrastructure spend increased to $100 billion.
- Small to medium businesses – instant asset write off of up to $30,000 and businesses turning over up to $50 million will have access.
- Private Groups - Delay to proposed Division 7A change until 1st July 2020 to reopen the consultation process.
- Primary producers and tourism operators to receive increased luxury car tax refund from $3,000 up to $10,000.
- $528 billion earmarked for Royal Commission to investigate abuse of those in disability care.
- Increase funding for carers - $84 million.
- Increase for mental health services - $100 million per year for 7 years.
- ABC, SBS and Australian Bureau of Statistics to receive increased funding.
- Continued funding for pre-school education.
- Additional funding for PBS to include more cancer drugs - $215 million.
- Payments to pensioners to assist with electricity bills.
Losers:
- Additional $1 billion to the Australian Taxation Office over 5 years to extend the scale and scope of the High Net Worth Individual, Trusts, Large private/public groups and Multinational Tax Avoidance Task Force.
- ATO also receive funding to target compliance with tax and super obligations of larger businesses in general. SME’s not to be included in this.
- $337 million to target the drug trafficking operations of Outlaw Motorcycle Gangs.
- Fair Work Ombudsman will setup a "sham contracting unit” to target employers who attempt to engage "contractors in name only” to avoid their employment obligations.
Want to learn more about the Budget?
Check out our 2018 budget summaries:
Business
Individual
Superannuation
Economy
Social Security & Family Assistance
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