According to The Australian Financial Review, business owners, families and first home buyers get a hand up in the 2017 budget. Students, property investors and bank CEOs face tougher times.
Extension of the instant $20,000 write-off for businesses with annual turnover of less than $10 million. $300 million to states that cut red tape for small business. Commitment to continue pursuing 25 per cent tax rate for all businesses.
Set up Western Sydney Airport Corporation to build new airport creating 20,000 jobs by early 2030s. Win for infrastructure companies.
CITIES AND REGIONS
$70 billion for transport projects to 2020-21 nationally. $8.4 billion to be provided for the Melbourne to Brisbane Inland rail project. A $472 million regional growth fund to be set up. $10 billion national rail program for better connnections between cities and regions. Upgrades to major regional roads and highways.
HEALTH AND DOCTORS
Freeze lifted on indexation of Medicare and Pharmaceutical Benefits Scheme. Set up Medical Guarantee Fund. Reverse removal of bulk-billing incentive for diagnostic imaging and pathology.
Levy on foreign workers to raise $1.2 billion for a Skilling Australian Fund to train workers
FIRST HOME SEEKERS AND PROPERTY BUYERS
First home buyers can save a deposit by salary sacrificing into superannuation, with contributions and earnings taxed at 15 per cent rather than marginal rates.This is to help build a home deposit, Contributions limited to $30,000 in total.
To enable downsizing, homeowners older than 65 will be able to make a non-concessional contribution of up to $300,000 to super funds from the sale of their principal home. The aim is to help boost available housing stock for families.
Childcare package of $373 billion to easing cost of living pressures on families. $428 million to extend access to early childhood education.
The National Disability Insurance scheme to be fully funded by a 0.5 percentage point increase in the Medicare levy in two years' time.
DEFENCE AND SECURITY FORCES
Defence spending to bei ncreased to 2 per cent of GDP three years early. $300 million to the Australian Federal Police for counter-terrorism.
SCHOOLS, TEACHERS AND STUDENTS
$18.6 billion in extra funding for schools, in line with Gonski needs-based funding.
$90 million set aside to ensure domestic gas supply. Funding for Snowy Hydro extension and $37 million to South Australia for new infrastructure.
BANKS AND BANK EXCUTIVES
New tax on big banks' liabilities starting July 1 to raise $6.2 billion over forward estimates.
Medicare levy to be increased by 0.5 per cent in two years' time to help fund National Disability Insurance Scheme.
UNIVERSITIES AND STUDENTS
Efficiency dividend of 2.5 per cent on universities for next two years. Students to pay additional 7.5 per cent for tuition, to be phased in over four years.
FOREIGN HOUSING INVESTORS
Tougher rules on foreign investment in residential real estate. Annual levy of at least $5000 on future foreign investors who fail to occupy or lease a property for at least six month of every year. Stronger capital gains tax rules.
Travel expenses between properties disallowed for those who negatively gear property. New limits to depreciation of plant and equipment.
Restore rule that prevents developers from selling more than 50 per cent of new developments for foreign investors.
Tax crackdown extended to structures involving foreign partnerships and trusts plus hybrid structures.
Abolish 457 visas and introduce new temporary shill shortage visa to make sure only needed workers come to Australia. Businesses that benefit from employing foreign workers will be required to contribute to a Skilling Australia Fund.
Penalties for those who fail to turn up to appointments or take on suitable work. News drug testing for welfare recipients. A crackdown on recipients of multiple payments.
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