Budget 2019: The complete list of winners and losers

Everyone’s a winner, baby … except at Budget time, when only some people are. This is the ultimate guide to the winners and losers of Josh Frydenberg’s inaugural Budget.

Treasurer Josh Frydenberg’s inaugural Budget is big on good news, with tax cuts, one-off payments to pensioners, and the ultimate election sweetener: for the first time in 12 years the Budget is back in black, with a projected surplus of 7.1 billion.

But deep in the fine print you’ll find the savings, fee hikes and other nasties.

Here’s the ultimate guide to both.

BUDGET 2019: THE WINNERS

PENSIONERS

A total of $285 million has been allocated to assist almost four million pensioners to cover the cost of their energy bills. The one-off Energy Assistance Payment will be $75 for singles and $125 for couples — and it will be paid this financial year, the Treasurer said. Qualifying payments include the aged pension, disability support pension and veterans’ service pension, among others.

SMALL BUSINESS

Small business owners were also given a tax cut to 25 per cent and increased their access to finance with a new $2 billion fund. The instant asset write off will also be increased from $25,000 to $30,000 and expanded to include businesses with a turnover of up to $50 million. This will allow a further 22,000 businesses employing 1.7 million Australians to take up the offer.

MORE BUDGET 2019 NEWS:

Treasurer’s Budget speech in full

Budget 2019: How it will affect you

Kochie’s verdict on ‘resurrection’ budget

Barefoot Investor’s Budget verdict

Mental health gets crucial boost in Budget

Treasurer Josh Frydenberg after delivering his first Budget speech in the House of Representatives Chamber in Parliament House in Canberra. Picture: Kym Smith

COMMUTERS

Multiple infrastructure announcements to relieve congestion in cities. A total of $100 billion has been allocated over the next decade to increase safety on roads, manage congestion and population growth. The Urban Congestion Fund — which aims to cut travel times within cities — will be increased fourfold to $4 billion. This includes a $500 million Commuter Car Park Fund to improve access to public transport hubs and take more cars off the road.

To sweeten the deal even more for commuters, the government will provide $2 billion for a fast-rail service between Melbourne and Geelong. Frydenberg also said work was underway to deliver fast rail for Sydney to Wollongong, Newcastle, Bathurst, Orange and Parkes as well as Brisbane to Sunshine Coast and Gold Coast and Melbourne to Shepparton, Traralgon and Wodonga.

TAXPAYERS

“The largest personal income tax cuts since the Howard government”. That’s how the Treasurer described his tax cuts. Single-income families (earning up to $126,000) can expect $1080 per year more, while dual-income families will get $2160 more. The government will also double the low and middle income tax offset from 2018-19. More than 10 million taxpayers will benefit, and 4.5 million of them will receive the full amount. Frydenberg said this money will be available to workers after their tax returns are submitted in July. He also announced the 32.5 per cent tax rate will be lowered to 30 per cent from July 1 2024.

SCHOOLS

“Education is the first defence of the nation,” Treasurer Josh Frydenberg said in his Budget speech, and the government has announced $300 billion to all schools, increasing funding by 63 per cent. While the controversial school chaplains program has had its funding extended, a local school community program will provide funding for upgrades to libraries, classrooms and play equipment. A total of $453 million for preschool education will enable 350,000 children to receive 15 hours of early learning each week in the year before school.

RETIREES

Retirees aged 65 and 66 have been given extra flexibility to pump more money into their superannuation. From July next year, they can make contributions to their super funds even if they’re not working. Currently, people aged between 65 and 74 can only make voluntary super contributions if they work a minimum 40 hours in a 30-day period.

People aged 65 and 66 will also be able to make up to three years of non-concessional (after-tax) super contributions in one hit, and people aged up to 74 will be able to receive spouse contributions.

These new super flexibility measures are forecast to cost the Government $75 million over the next four years.

PREMATURE BABIES

Premature babies have been given a lifeline in the federal budget with $2 million committed to the Australian Red Cross to help expand donor breastmilk services.

In Australia, 4000 Australian babies a year are born at 32 weeks gestation or earlier which is considered extremely premature.

The World Health Organisation recommends these babies be fed breast milk to minimise complications and give them the best shot at life.

However, often due to the stress of delivering their babies early and having an infant in high care, many mothers of premature babies struggle to produce their own breastmilk or enough of it.

The Red Cross Milk Bank accepts donated milk from lactating mothers once they have passed the screening process.

The organisation believes this measure could help prevent 20 newborn deaths each year.

MORE BUDGET 2019 NEWS:

Christmas Island detention centre to close again

Medicare shake up among health sweeteners

Aged care pain despite funding boost

‘Secret’ funding to stop cyber spies

‘Funding flop’: $453m for preschools

Treasurer Josh Frydenberg and Tony Abbott after delivering his first Budget speech in the House of Representatives Chamber in Parliament House in Canberra. Picture: Kym Smith

DISASTER RELIEF

The government has set aside $3.9 billion for an emergency response fund, $6.3 billion for drought support and additional $3.3 billion for those affected by floods. This includes $232 million in 2018-19 for those affected by the floods that hit North Queensland in late January.

APPRENTICES

Treasurer Josh Frydenberg announced a $525 million skills package to create 80,000 new apprenticeships in industries with skills shortages. The government will also double the incentive payments to employers to take on an apprentice to $8000. The new apprentices will also receive a $2000 payment.

MUSIC INDUSTRY

The music industry will be given a huge cash injection and help artists expand into lucrative international markets, with $30.9 million in new funding. The initiative will include grant funding of $22.5 million over five years to facilitate businesses to host local live music events featuring Australian artists.

WESTERN AUSTRALIA AND THE NORTHERN TERRITORY

Additional GST payments to WA and the NT will continue until 2021-22, bringing WA’s total payment from $9.8 to $11.1 billion, and the NT’s from $3.9 to $4.2 billion. Despite this, it is worth noting that WA will receive the lowest share of GST per person in the next financial year — but this is offset by the high level of revenue it can collect from mining royalties.

BUDGET 2019: THE LOSERS

DODGY POLLIES

The feds are stumping up for a Commonwealth Integrity Commission, to the tune of $104.5 million over four years. The independent statutory body will be led by an Integrity Commissioner, assisted by two deputies.

DODGY BUSINESSES

From July 1 this year the government will crack down on the black economy in the following ways:

— Ensuring people in high-risk industries are unable to hide or underreport their income.

— Toughening up on businesses paying cash wages to staff while avoiding reporting their income.

— Having good tax records when tendering for large Government contracts.

There is also a tougher stance on Australian Business Numbers (ABN), which for years have been easy to obtain and require few verification checks.

From July 1, 2021, ABN holders must lodge their income tax return — previously they did not have to do this — and from July 1, 2022 they will also have to confirm the accuracy of their details on the ABN register annually.

CHILD SEX OFFENDERS

The government has green lit a national, publicly available Child Sex Offenders Register. A total $7.8 million has been allocated over four years from 2019-20 to the Australian Criminal Intelligence Commission to establish the register, which will include the names, ages, aliases, photographs, physical description and general location of offenders as well as their crimes. A further $25.5 million has been set aside for the creation of a National Centre for the Prevention of Child Sexual Abuse.

Barefoot Investor’s Budget verdict

Treasurer’s Budget speech in full

Kochie’s verdict on ‘resurrection’ budget

Treasurer Josh Frydenberg has delivered tax cuts and one-off payments to pensioners. Picture: Kym Smith

TAX DODGERS

Tax dodgers, beware: the ATO is coming after you. The government has announced a billion dollars in funding over four years from 2019-2020 to beef-up its Tax Avoidance Taskforce. The measure is expected to pay for itself, and then some, bringing in an estimated $3.6 billion over the forward estimate periods. The taskforce will target multinationals, large public and private groups, trusts and high wealth individuals.

THE BANKS

Financial institutions will be more closely scrutinised, with a $400 million funding boost for ASIC, $150 million for APRA and $35 million for a new criminal jurisdiction of the
Federal Court. The government announced it will “take action” on all 76 recommendations of the Hayne Report, including setting up an industry-funded compensation scheme and providing $30.7 million for unpaid dispute resolution determinations.

MIGRANTS

It had been flagged already, but the government has used the Budget to announce a cut in Australia’s migrant intake — from 190,000 currently, to 160,000 for four years starting from 2019-20. Of the 160,000 places, 108,682 are in the skill stream, 47,732 are in the family stream and 3586 places are in the child and special eligibility streams.

VISA APPLICANTS

The government is jacking up the base charge for all visa applications (except the 600 subclass) by 5.4 per cent from July 1, 2019. For example a student visa will rise by $30 from $585 to $615. A short term temporary work visa will rise by $65 from $1205 to $1270. This little measure is expected to bring in $275 million from 2018-19 to 2021-2022.

QUEENSLAND, SOUTH AUSTRALIA, TASMANIA

Total payments will be cut — either through GST or other funding. Queensland totals will go from $28.9 billion to $26.7; SA totals from $11.1 billion to $10.7; and Tassie totals from $3.8 billion to $3.7.

BUDGET 2019: THE OTHERS

In every Budget, there are certain groups who don’t exactly win — but they don’t exactly lose, either. In this cohort for 2019 we have to add smokers and drinkers, who have not been slugged with increased excises this year. In a similar way, the Australian Public Service — frequently a target for cost-savings measures — was relatively untouched this year, with only minor staffing adjustments in a few agencies. Interestingly, the ABS — which suffered a big cut last year in the wake of the 2016 census debacle, has had a $38 million funding boost for 2019-2020, to help plan the 2021 census.

Originally published as Budget 2019: The complete list of winners and losers