The Bull

Wednesday 26

September, 2018 9:06 AM



Stronger economy brings extra tax dollars

Stronger economy brings extra tax dollars

The federal budget bottom line has been bolstered by growing revenues enabling the Turnbull government to announce new spending ahead of the election.

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By AAP 06.05.2018 11:23 AM

BUDGET 2018 - WHAT WE KNOW SO FAR

- Overall theme is: "A stronger economy means a stronger budget, creating more jobs while guaranteeing essential services"

- Tax receipts are running at least $4.8 billion higher than estimated in mid-year review in December

- Federal election is due before May 2019

Medicare levy hike scrapped

- Won't go ahead with a 0.5 increase in the Medicare levy to pay for the NDIS. How it will be funded will be spelt out in the budget

Budget surplus in 2021

- Budget papers to show a return to the black on time, as promised

Income tax cuts

- Low and middle-income earners are the priority for immediate tax cuts but they won't be "mammoth

- Those earning above $180,000 a year may have to wait until 2024

- Options include lifting tax brackets. Current zero rate applies to incomes up to $18,200; 19 per cent bracket covers $18,201 to $37,000. 32.5 per cent covers $37,001-$87,000; 37 per cent covers $87,001-$180,000; 45 per cent top rate

Education

- Needs-based funding to deliver an extra $23.5 billion to schools over the decade

- New child care and early learning system starts July 2

- $271 million Community Child Care Fund for regional and disadvantaged communities

- One year extension of preschool into 2019 at cost of $440 million

- Extra funding for school chaplains expected

- University funding frozen and changes to Higher Education Loan Program

GST distribution

- States and territories to benefit from an extra $3.4 billion in GST revenue in 2018/19

- NT and WA benefit from top-ups

Superannuation

- New laws to guarantee tax rates and rules regarding superannuation

- Expand limit on the maximum number of members in self-managed super funds from four to six

Infrastructure

- $75 billion plan over the decade

- Melbourne airport rail link $5 billion

- M1 upgrade between Brisbane and Gold Coast, at cost of $1 billion

- Other rail projects including Inland Rail, metropolitan commuter rail projects, study into possible Western Sydney Airport rail link

- Package of projects for Western Australia. $3.2 billion for 2018/19 including $1.84 billion for Metronet rail

- $155 million for northbound bridge across the Shoalhaven River, southern NSW

Space

- Australian Space Agency seed funding of $50 million, but no decision yet on where it will be based

Corporate tax cuts

- Government will budget for a corporate tax rate to fall for all companies to 25 per cent by 2026/27, despite being stalled in the Senate

Instant Asset Write off extended

- Small businesses to benefit from extension of $20,000 instant asset write-off, first introduced in 2015. Allows firms with a turnover of up to $10 million a year to instantly claim tax deductions on all equipment purchases worth less than $20,000.

Crackdown on illegal economy

- Australian Border Force-led taskforce set up to crackdown on illicit tobacco trade, predicted to raise $3.6 billion in revenue

- Government received advice on reaping extra income tax, GST and business tax revenue from the $32 billion a year black economy

Research and development tax breaks

- Changes to the way the $3 billion R&D tax incentive can be accessed to prevent firms claiming tax breaks for business-as-usual activities

Medicare

- Funding to upgrade computer system which handles $50 billion a year in payments

Health measures

- $40 million for drug addiction services

- $39.5 million for free whooping cough vaccinations for all pregnant women.

- $241 million to make spinal muscular atrophy drug Spinraza available on PBS from June 1 this year

Mental health

- $84 million to establish a Flying Doctor mental health service as part of a four-year, $327 million commitment

- $33 million to boost 24-hour telephone service at Lifeline

Cancer

- Medicare-funded MRI scans to check if men have prostate cancer

- 200,000 women to receive $200 towards 3D breast cancer screening.

Water safety

- $36.9 million over three years to reduce the rate of drownings

WA hospitals

- Three WA hospitals to get a total boost of $189 million

Aged Care

- Possible boost to funding following a taskforce report into the sector which warns of billions of dollars of investment needed

Housing agreement

- $4.6 billion to address housing affordability, working with the state and territory governments

Crime

- $70 million on a new Australian Centre to Counter Child Exploitation, based in Brisbane, for countering child exploitation and boost police and border force numbers to stamp out trafficking and live-streamed material

Climate

- Clarification on future of the Emissions Reduction Fund, which had $265 million left in it as of December 2017 (out of an initial $2.55 billion).

Snowy Hydro 2.0

- Commonwealth to buy Victoria and NSW government shares in project

National security

- New counter-espionage unit in the Department of Home Affairs, under a national countering foreign interference coordinator

Data

- $65 million over four years for a national data commissioner to oversee access to government-held data

Environment

- $500 million Great Barrier Reef rescue plan including programs to tackle runoff from farming, the destructive crown-of-thorns starfish, and fund new research on coral bleaching

City deal

- Perth to sign 'city deal' to integrate transport and housing

Film

- $140 million to boost tax rebate for filmmakers

Alcohol

- Tax break for craft brewers and distillers

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