Let us know how the budget will affect you in the comments below.
We’re all different. And, in many ways, we’re all winners and losers in this year’s budget. However, breaking down some of the spending initiatives and the (much more predominantly featured) spending cuts, we can get a better idea for how we may or may not be affected.
Firstly, the spending initiatives.
Most of it comes down to funding the NDIS and the Gonski education reforms. This spending – ignoring for a moment the cuts made in order to make it happen — largely appears good for all of us. Long awaited disability care gets funded, and much-needed reforms to our education system kickstarted.
Other than that (and the DisabilityCare levy we’ll be paying which will fund the bulk of the NDIS), the budget’s impact will depend on who you are and what your future plans are. So, are you:
Planning on having a baby at some point after the next nine months and two weeks?
You can forget about receiving the $5000 baby bonus, as well as the smaller $3000 bonus for a second child. You will still have access to Paid Parental Leave, if you’re working. And if eligible for Family Tax Benefit Part A, you will receive an additional payment of $2000 for the first child and $1000 for subsequent children.
Using childcare?
Don’t expect too much additional help for making it more “accessible and affordable”. The childcare rebate will continue to max out at $7500 per year per child for the next four years, regardless of any increase in childcare expenses. The government has also rejected calls by childcare operators to pay the rebate direct to centres, which would enable parents to simply pay cheaper fees upfront. A further $12.9 million has been allocated to fund trials of longer operating hours in certain child care centres.
Currently own your own business?
Well, the Treasurer may have promised to “support business to innovate” but according to Cara Waters over at our sister publication Smart Company, he hasn’t provided much for the business community. Businesses look set to be targeted under the new measures – via crackdowns on tax avoidance and provisions such as upfront checks for start-ups registering ABNs and an increased fee for business name registrations. There are a couple (but not many) changes designed to help, with the treasurer promising $29.4 million in assistance for small and medium sized businesses vying for government services and tenders, and $12.9 million to assist businesses in accessing the NBN.
Got the entrepreneurial bug?
Things could be looking up (once you pay that increased new business registration fee). Innovation funding has been spared, with $350 million allocated over 15 years to fund the new Innovation Investment Fund. A further $3.2 million has also been provided for the promotion and marketing of Australian start-up success stories.
Planning to apply for a 457 visa?
It may just get harder. This budget will see application fees for such visas almost doubled, with the Fair Work Ombudsman also receiving $3.4 million in new money over the next four years to monitor and enforce the activity of 457 visa holders.
Concerned about bullying in the workplace?
With new anti-bullying legislation set to take effect from July 1 this year, $21.4 million has been allocated to the Fair Work Commission to further crack down on workplace bullying and fund legal remedies for victims of bullying.
Spending over $2000 a year on self-education?
Expect to be taxed. The government will crack down on self-education tax deductions, capping the tax-free threshold at $2000. The change comes in line with also ending the 10% discounts students receive for paying university fees upfront. Business groups have previously stated the $2000 tax benefit cap could see employers drop their staff training initiatives.
Accessing cancer treatment and screening services?
Good news with a total $226 million allocated for cancer research, detection, prevention and support. More funding will be provided for bowel cancer screening while the target age range for BreastScreen Australia will be expanded. $29.6 million has been allocated to provide chemotherapy medicines.