Winners and losers : Budget 2016

Winners

  • Businesses with a turnover up to $10 million will pay a reduced company tax rate of 27.5 per cent.
  • Businesses with a turnover up to $100 million to gradually receive 27.5 per cent rate by 2020.
  • All businesses to receive reduced company tax rate of 27.5 per cent by 2024 and 25 per cent by 2027.
  • Unincorporated small businesses with a turnover less than $5 million get a tax discount of 8 per cent.
  • Businesses with a turnover up to $10 million receive $20,000 instant asset write off, expiring in June 2017.
  • People earning more than $80,000 receive a tax cut of up to $6 per week as the middle income tax threshold is increased.
  • Earners over $180,000 will see the Budget Repair Levy end as scheduled in June 2017.
  • People earning up to $37,000 won’t lose a tax rebate, capped at $500, on their contributions.
  • University students will not have their fees deregulated after the policy was officially dumped.
  • Schools get $1.2 billion in extra funding over three years from 2018 – less than Labor’s promised $4.5 billion.
  • Disabled students receive $118 million in funding for extra support.
  • State and territory hospitals receive $2.9 billion in additional funding between 2017 and 2020.
  • People with a disability will benefit from welfare budget cuts invested in a new NDIS savings fund.
  • Young unemployed offered training and internship programs, with rewards for the employers, under $750 million employment package.
  • Second Sydney airport at Badgerys Creek receives $115 million.
  • Inland rail project between Brisbane and Melbourne receives $594 million.
  • Sydney Metro rail project receives $1.7 billion from asset recycling fund.
  • Melbourne Metro rail project receives $857 million from asset recycling fund.
  • Parramatta light rail, regional road and freight corridors, NT flood mitigation receive grants from asset recycling fund.
  • Defence building projects get $195 billion over 10 years including submarine, frigate and patrol vessel construction.
  • Defence force gets $351 million for one year’s maintenance of the fight against Islamic State.
  • Australian Federal Police and Australian Crime Commission funding boosted by $153 million for security amid terrorism fears.

Losers

  • Multinational corporations will face a diverted profits tax or “Google tax” of 40 per cent on income they attempt to shift offshore and will be policed by a 1000 member taskforce in the ATO.
  • Banks to sacrifice $121 million to fund corporate regulator ASIC under user pays model.
  • Smokers face four 12.5 per cent increases in the tobacco excise, a policy the government copied from Labor and Tony Abbott attacked as a “workers’ tax”.
  • People with super balances over $1.6 million can no longer roll all savings into retirement funds with tax-free earnings.
  • People earning between $250,000 and $300,000 a year pay double the rate of tax on their super contributions.
  • Transition to retirement pension account holders have tax “loopholes” tightened.
  • Wealthiest 4 per cent forecast to be hardest hit by package.
  • Universities will still be hit with a 20 per cent funding cut, originally proposed as part of fee deregulation package.
  • Aged care providers to lose more than $1 billion in funding for complex healthcare over four years.
  • Doctors: Medicare benefits schedule frozen for three years.
  • 90,000 disability support recipients will have their payments reviewed to assess capacity to work, with 30,000 undergoing medical assessment.
  • Family tax benefit recipients still face tightening of the payments as the government persists with savings held up by the Senate.
  • Parents will wait until 2018, one year later than scheduled, to receive childcare subsidies funded by FTB changes.
  • Businesses: Subsidies for employing young people tightened.
  • Unemployed: Some Work for the Dole recipients will see payments restricted.
  • New welfare recipients will not receive Carbon tax compensation payments.
  • Victoria gets less than 10 per cent of national infrastructure funding averaged over four years

 

Source: Sydney Morning Herald