Budget 2017: Your five-minute guide
FEDERAL Treasurer Scott Morrison has handed down his second Budget, but how will it affect you?
Our five-minute guide gives you an overview of all you need to know.
- The 2017-18 budget deficit is $29.4 billion, forecast to drop to $21.4 billion in 2018-19, and then $2.5 billion in 2019-20, with expectation of a return to surplus of $7.4b by 20-21
- Unemployment is now expected to have peaked at the current rate of 5.75 per cent and will fall to 5.5 per cent in 2018-19, then to 5.25 per cent in 2020-21
- Inflation at 2 per cent this year and rising to 2.25 per cent next year, then 2.5 per cent in 2019-20 and through to 2020-21.
- Total revenue $444.4 billion, up from $412.1 billion in 2016-17 and estimated to reach $476.1 billion in 2018-19
- Real GDP of 2.75 per cent, expected to rise to 3 per cent in 2018-19, where it will remain through to 2020-21.
- Net debt to peak at 19.8 per cent of GDP in 2018-19, falling to 8.5 per cent in 2027-28
- First-home buyers to salary-sacrifice into their superannuation, taxed at a lower margin, to save for a home deposit
- Can contribute a total of $30,000 into their super, on top of compulsory contributions, or $15,000 per year.
- Retired couples who downsize will be able to put $300,000 each into their superannuation, from the proceeds of their home sale.
- A tax of $5000 per annum to be imposed on foreign investors who leave their properties vacant for six months or more for the year.
- Medicare rebates will rise from 2018 by around 50 cents.
- Price of some medicines will fall
- $300 worth of extra dental care for children every two years
- Mental health funding for telehealth consultations, suicide prevention and research
- Families who refuse to vaccinate children will lose $28 a fortnight in family tax benefits.
- The government will fully fund the NDIS by raising the Medicare levy by 0.5 per cent, it will introduce a new system to check the quality of care providers.
- A program to help train the extra 60,000 NDIS care workers needed has been funded in the budget.
- The government will also set up a program to find jobs for people with a disability.
- Thousands of Australians who have disabilities but won't qualify for the NDIS will get funding for community based mental health programs.
- University graduates to pay back student loans from a starting salary of $42,000 a year, down from $55,000
- Higher education fee contributions to be increased by 7.5 per cent, phased in over four years, from 2018
- $18.6-billion in extra funding for children in all schools over the next 10 years.
- meet 20 per cent of needs-based funding for students in public schools and 80 per cent for students in non-government schools.
- funding for each student across all sectors to grow by 4.1 per cent per annum on average.
- New Jobseeker Payment, which will consolidate seven existing income support payments
- $263 million allocated over four years to expand ParentsNext services, supporting parents of young children
- New measures, including a drug testing trial among 5000 welfare receiptients and a crackdown those collecting multiple payments, to ensure benefiaries fulfil job seeking obligations.
- $75 billion in infrastructure funding from 2017-18 to 2026-27
- Up to $5.3 billion committed for the Badgerys Creek Airport, commencing works in 2018.
- Government to deliver inland rail connecting Brisbane with Melbourne, using an $8.4-billion equity investment in the Australian Rail Track corporation and a public-private partnership.
- $1 billion infrastructure package for Victoria
- $1.6 billion for new Western Australian projects
- More than $400 million combined in new funding for ASIS and the Australian Federal Police specifically to fight the rising threat of terrorism.
- Budget recommits troops for a further three years to overseas operations, notably the Middle East and the fight against Islamic State
- Various ADF bases to get upgrades and facelifts to cater for new hardware
- Military to play a $35 million role in the 2018 Gold Coast Commonwealth Games.
- Medicare Levy low income threshhold will increase so low income tax payers such as singles, seniors and pensioners will continue being exempt from paying the levy.
- Singles threshold to be increased to $21,655; families to $36,541 plus $3356 for every independent child
- Property investors no longer allowed to travcel deductions to visit rental properties. Depreciation deductions to be limited.
- Investment in new and existing affordable rental housing by increasing the capital gains tax (CGT) discount from 50 per cent to 60 per cent.
- Tourism Australia to have budget cut from $160 million to $148 million
- Extra $410 million in revenue flagged from linking visa application charges to annual CPI increases.
- Government to invest $185.4 million over four years from 2017-18 in significant reforms to Australia's visa processing arrangements
- $33.4mm to establish a redress scheme for survivors of institutional child sex abuse
- Once scheme is live on July 1, 2018, survivors can claim up to $150,000 in compensation for abuse
- Will help 3000 victims who suffered abuse at hands of Commonwealth agencies. including Defence, Immigration and indigenous Affairs
PAID PARENTAL LEAVE
- Changes to the PPL scheme will be scrapped under a $17b saving for unlegislated policies, aka "zombie measures"
- Will mean 72,000 people won't see a scaling back of payments and 7000 people who were due to have entire payment cut will now not suffer that fate.
- $381 million funding for homelessness services through to 2019-20, which is a major commitment to the sector as homelessness continues to rise.
- For the first time, states will now face sanctions from the Commonwealth if they don't meet agreed homelessness targets.
- Government to introduce levy on major banks with liabilities greater than $100 billion, raising $6.2 billion over four years.
- Diplomats posted overseas to lose some of their salaries with a streamlining of allowances to save the government $37 million
- Cost of roll-your-own cigarettes and cigars to increase
- Will be taxed the same excise rate as manufactured cigarettes
- Government to strip $217 million and 408 staff from the Australian Bureau of Statistics over the next year.