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Home › General › Federal Budget 2017 Snapshot
Federal Budget 2017 Snapshot
17 Jun 2017General

Federal Budget 2017 Snapshot

With commentators calling it ‘Labor-lite,’ Scott Morrison’s second budget attempted to reset the Coalition’s narrative with mainstream voters and to finally draw a line under the disaster that was Joe Hockey’s 2014 budget. In this regard, the budget was generally seen as a fair budget with limited scope for attack in Bill Shorten’s Budget Response.

Key Points

As seems to be the way now, most of the key measures were pre-announced or leaked prior to budget night. Below we highlight the main points.

Economy

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  • Growth to rise from 1.75% this financial year to a steady 3% by 2018/19
  • Unemployment to remain steady around the 5.5% over the next few years
  • Iron ore price to average $55 per tonne over the next four years
  • The last time the government ran a budget surplus was in 2007/08. Under current assumptions the next one will be in 2020/21

Infrastructure

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  • $75 billion planned funding and financing over the next ten years on road and rail infrastructure
  • Establishment of a $10 billion National Rail Program to fund regional and urban rail investments
  • $500 million on Victorian regional passenger rail and $30 million to help plan a Tullamarine airport rail link (at last)
  • $844 million on the Bruce Highway in Queensland and $1.6 billion for various projects in Western Australia
  • $5.3 billion to develop Western Sydney Airport

Tax Screen Shot

 Individuals

  • An increase of 0.5% in the Medicare Levy from 2019, taking it to 2.5%
  • More measures to curtail the cash economy and improve the tax and welfare systems

Business

  • Extension of the $20,000 asset write off provisions for small business
  • A new 0.6% levy on the big four banks and Macquarie Bank

Investors

  • Restrictions on deductions for residential property investments including no longer being able to deduct travel expenses relating to inspecting or maintaining the property
  • Incentives for investment in affordable housing
  • Tax changes for foreign tax residents and property owners

Super

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  • A super savings scheme of up to $30,000 in total to assist in building a deposit for first home buyers
  • Allowing people over 65 to contribute up to $300,000 into super from the sale of their principal home if they’ve owned it for longer than 10 years

Education

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  • $18.6 billion in extra school funding (Gonski 2.0)
  • Increased university fees, with students contributing an extra 7.5% phased in over the next four years
  • New tighter thresholds for HELP debt repayments

Social Security

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  • Reinstatement of Pensioner Concession Card entitlements
  • Fully funding the National Disability Insurance Scheme
  • A new upper income threshold of $350,000 will apply to the child care subsidy from 1 July 2018

For more information contact us on (03) 8610 6396.

Keep Wealth Partners Pty Ltd (AFSL 494858). This information is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different and you should seek advice from a financial planner who can consider if the strategies and products are right for you.

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