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2017 Budget

Budget 2017: All The Details At A Glance

The biggest losers in the 2017 budget are banks and businesses who will face increased taxes from 1 July worth $7.4bn over four years. Australians who earn more than $21,655 will have personal tax hikes from 2019 in the form of a Medicare levy increase of 0.5% to fund the National Disability Insurance Scheme.

Some welfare recipients will face drug testing while an attempt has been made to address housing affordability with harsher laws for foreign owners, incentives for managed funds to invest in affordable housing and tweaks to negative gearing.

 

budget

Infrastructure

  • Now the Treasurer has redefined borrowing to build things as “good debt” it’s the centrepiece of the government’s pitch on jobs creation, which all rests on economic growth.

  • $75 billion in infrastructure funding and financing over the next 10 years.

  • The Commonwealth will attempt to buy the Snowy Hydro outright from the NSW and Victorian Governments, provided they invest all the funds in their own priority infrastructure projects.

  • Rail investments will include investigating a train to Melbourne’s Tullamarine Airport and $8.4 billion into the Australian Rail Track Corporation to fund the Melbourne to Brisbane Inland Rail project.

  • $5.3 billion injected into the Western Sydney Airport Corporation, with the airport to be opened by 2026.

Jobs

  • A new annual foreign worker levy of $1,200 or $1,800 per worker per year on temporary work visas and a $3,000 or $5,000 one-off levy on workers on a permanent skilled visa, with the proceeds to be fed back into a new Skilling Australians Fund, worth $1.2 billion over four years.

Medicare

  • The four-year freeze on the indexation of the Medicare Benefits Schedule, will be lifted, hopefully increasing the availability of bulk-billed medical services.

  • A new permanent fund to pay for Medicare and the Pharmaceutical Benefits Scheme will be created.

  • $115 million extra on mental health, including rural telehealth services, research and suicide prevention.

NDIS

  • To fully fund the NDIS the Medicare levy will increase by 0.5 percentage points to 2.5 percent of taxable income in two years’ time. This means over the next four years Australians will pay an extra $8.2 billion. Morrison has asked the parliament to “meet us in the middle” on this issue.

Education

  • $18.6 billion extra funding for schools over the next ten years.

  • Funding for each student across all sectors to grow by 4.1 percent each year.

  • University students will pay more for their degrees and start paying back their HECS debts earlier, and universities will have to find 2.5 percent in savings.

Banking Services

  • Establishment of the Australian Financial Complaints Authority, to handle all consumer disputes with banks and other financial institutions.

  • A 0.6 percent levy on the liabilities of the biggest five banks, worth $6.3 billion over four years.

Small Business

  • The Government has extended the small business $20,000 instant asset write-off for equipment expenses, for its second year. 

Housing

  • A range of measures to increase supply of new homes, including opening up Commonwealth land for development and the establishment of a $1 billion National housing Infrastructure Facility to ease development.

  • A National housing Finance and Investment Corporation to provide low-cost finance for affordable rental housing.

  • First home buyers to be able to salary sacrifice into their superannuation fund so super fund tax advantages apply to their deposit savings.

  • Australians over 65 who downsize will be allowed to put up to $300,000 of the proceeds of the sale of their home into superannuation.

  • Foreign investors who leave properties empty will face a $5,000 levy.

  • The 50 percent cap on foreign investment in new developments to be reintroduced.

Welfare

  • A trial of drug testing on 5,000 welfare recipients. Those who fail a drug test will have their welfare payments made by a Cashless Debit Card.

  • Welfare recipients who fail to turn up to appointments or meet other obligations face having their payments reduced or cancelled.

Pensioners

  • 92,300 people will have their Pensioner Concession Cards reinstated, after they were initially rendered ineligible by a new assets test.

Sex abuse survivors

  • $33.4 million for the establishment of a Commonwealth Redress Scheme for survivors of institutional sex abuse.

Foreign Aid

  • Official Development Assistance to be frozen for two years from 2019-20, effectively cutting $303.3 million out of our foreign aid budget.

Offshore detention

  • An extra $21.2 million in 2017-18 for regional processing and resettlement, including the closure of Manus Island.

National Security

  • An extra $321.4 million for the Australian Federal Police, which will fund an additional 100 intelligence experts, 100 tactical response and covert surveillance operators, and almost 100 forensic specialists.

Family Law

  • A comprehensive review into the Family Law Act.

  • $80 million for frontline family law and family violence services, including Parent Management Hearings and additional family consultants.

Defence

  • The Defence Budget will grow to 2 percent of GDP by 2020-21.

  • $34.6 billion in 2017-18

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