Last night Treasurer Scott Morrison handed down the 2018 budget, designed to focus on job creation, guarantee essential services and supporting older Australians. He also announced greater infrastructure initiatives including 24 Billion to be spent over roads and rail in the next decade while “bringing the budget back into balance”.
Treasurer Scott Morrison’s Budget Speech Streamed live on Facebook
- The budget deficit is forecast to drop to $18.2 Billion in 2017-18, $14.5 Billion in 2018-19 and due to hit positives in 2019-20.
- Inflation, currently at 2.25 per cent is set to hit 2.5 per cent and stay there for the next two years.
- Real GDP to grow by 3 per cent in 2018-19 and continue through the next three financial years
- Tax relief of up to $530 a year for middle and lower income individuals. Punch in your numbers here.
- $24.5 billion in funding for major transport projects, with $75 billion allocated to infrastructure upgrades over the next 10 years. This includes up to $5 billion for Melbourne Airport-CBD rail link and $3.3 Billion for Qld’s Bruce Highway.
Apart from the infrastructure upgrades, which is likely to be positive around the industry, there was not a lot of property in this year’s budget compared to last year.
- No mention at all of anything for First Home Buyers and other than the 2017-19 super savings scheme allowing tax-free savings for a deposit (so not much there for struggling property owners)
- There was a commitment to establish a $1 billion National Housing Finance and Investment Corporation and release more land suitable for housing – this includes unlocking Commonwealth land for example in Queensland’s Redland City area where the Government is divesting some land owned by ACMA (around 400 homes)
- From July 2019, Property owners leaving land sitting empty will no longer be able to claim expenses such as council rates and maintenance costs (adding $50 million to the bottom line)
- $1.6 billion to support state affordable housing services (down $295 million from last year’s budget) and $4.8 billion over four years to the ABS to construct better estimates of the stock of affordable housing.
- $1.6 billion to go into providing 14,000 home care packages for seniors that want to remain in their homes, and expanding the pension loan scheme (possibly disadvantaging growing families looking for larger homes).
- No changes to tax or negative gearing.
- Over the next five years, approximately $5.3 billion in revenue is forecast to be delivered by cracking down on the ‘black economy’, meaning scrutiny on things like ‘under the table’ business transactions and not allowing businesses to claim for deductions on things like wages where PAYG has not been withheld.
- Company’s with up to $50m in turnover continue to receive tax cuts over the next decade from 30 per cent to 25 per cent.
- Extensions of the instant asset write off up to $20,000 for businesses with a turnover of up to $10 million and GST reporting to be further streamlined.