How will the 2017 Federal Budget affect you?

May 09, 2017
Brett Mallott

WINNERS

* Disabled people

Funding guaranteed for the National Disability Insurance Scheme, which is expected to cost $21 billion a year once it is fully implemented in 2020.

* GPs and medical specialists

A gradual thawing of the freeze on Medicare rebates paid by the government.

* Schools

An extra $18.6 billion over 10 years, distributed on a needs-based model with average increases of 4.1 per cent per student.

* First home buyers

To help save for a deposit faster, people will be able to salary sacrifice $15,000 a year (or $30,000 in total) into their superannuation funds.

* Older home owners

Older home owners can tip $300,000 from the sale of their homes into their super funds in a measure designed to encourage people to move into smaller properties and the boost supply of family-sized homes.

* Pensioners

Concession cards are back for those who lost them after pension asset test changes earlier this year.

* Small-medium businesses with turnovers under $10 million

A one-year extension of the instant asset write-off scheme for capital equipment expenses up to $20,000.

* AFP

More than $300 million for more specialist officers targeting terrorism, organised crime, child exploitation.

LOSERS

* Big five banks

They’ll be slugged with a new levy designed to reap $6.2 billion from July 1 and face fines of up to $200 million if they cover up misconduct by executives.

* Senior bank executives

Could be stripped of bonuses, deregistered or disqualified if they breach new accountability rules.

* Taxable income earners

The Medicare levy will rise 0.5 percentage points to 2.5 per cent of taxable income from July 1, 2019, to raise $3.55 billion for the National Disability Insurance Scheme.

* Uni students

The cost of a four-year degree will rise 7.5 per cent and students will have to pay back government loans as soon as their income hits $42,000.

* Universities

A new 2.5 per cent efficiency dividend to apply in 2018 and 2019, saving the government $2.8 billion.

* Welfare cheats

Job seekers who regularly miss Centrelink appointments or turn down suitable work will have payments reduced or cancelled. Drug test trials for 5000 new welfare recipients.

* Foreign property investors

A new annual $5000 levy on owners of “ghost houses” left vacant for more than six months. New rules making these homes subject to main residence capital gains tax.

* Property investors who negatively gear

No longer able to claim travel expenses, with limits placed on some equipment and depreciation deductions.

* Employers of foreign workers

New annual levy of $1200 or $1800 for those hiring temporary foreign workers and $1800 for permanent foreign workers (replacing payroll contributions regime).

Courtesy of The West Australian newspaper

Posted in: News

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