Federal Budget 2017: Scott Morrison takes swig from Bill Shorten’s brew
FEDERAL BUDGET GUIDE: SCOTT Morrison has delivered a high-taxing, big-spending Budget designed to neutralise Bill Shorten’s political attacks, save the government’s bacon and lay to rest the ghosts of the Abbott government.
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SCOTT Morrison has delivered a high-taxing, big-spending Budget designed to neutralise Bill Shorten’s political attacks, save the government’s bacon and lay to rest the ghosts of the Abbott government.
From July 2019, a worker on $80,000 a year will pay $400 more income tax when a new 0.5 per cent Medicare levy slug kicks in, to make up a 10-year $56 billion shortfall in funding the National Disability Insurance Scheme.
An hour before Mr Morrison was due to give his Budget speech, he intervened to block his staff from giving the Herald Sun details on how much that slug will hit workers on other incomes.
The big banks will also be hit for $6.2 billion over four years, to partially overset $13 billion in zombie savings measures left over from the two Budgets Joe Hockey delivered.
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The payroll tax on foreign workers will be replaced with a levy of between $1200 and $5000 per employee, raising $1.2 billion over four years to improve Australian workers’ skills.
The Treasurer called it an “honest” Budget that forecast a return to surplus within three years. “This makes the right choices for Australians who are working hard to secure the better days ahead for themselves and their families,” he said.
Retirees who lost their pensioner concession cards earlier this year will get them back.
Bulk-billing incentives for diagnostic imaging and pathology services will be restored.
And a freeze on indexing payments to doctors will be lifted two years ahead of schedule.
MEDICARE FREEZE TO END, REBATES SET TO RISE IN HEALTH BUDGET
Other key Budget measures Mr Morrison announced include:
A WELFARE crackdown that will see 5000 new claimants drug-tested, with the threat of them losing Centrelink cash if they repeatedly fail;
A THREE-STRIKE system that will suspend welfare for up to a month for job seekers who wilfully miss interviews and appointments as well as a big increase in their activity tests;
TAX BREAKS for empty-nesters and first-home buyers;
A NEGATIVE gearing and capital gains tax crackdown to raise $1.6 billion over four years;
A NEW $10 billion fund to pay for national rail projects that could include a Melbourne airport link, and;
A $5000 tax on properties left empty for six months or more by new foreign owners.
RETIREES GIVEN A SUPER INCENTIVE
BUDGET TRYING TO HELP YOU BUY A HOUSE
The Budget also spends up big, including a $8.6 billion on a Melbourne-to-Brisbane railway link.
Victoria will get an extra $1 billion on infrastructure in return for leasing the Port of Melbourne which — while more than the $877 million originally offered — is well short of the $1.45 billion the state government will have been hoping for.
On Tuesday night, Prime Minister Malcolm Turnbull told the Herald Sun the Budget included a substantial infrastructure package including $30 million for planning of an airport-to-CBD rail link in Melbourne.
WHAT THE FEDERAL BUDGET MEANS FOR VICTORIA
“It is vitally important for major cities to have more rail as they become more densely settled,” he said. “I strongly believe it is an omission that Melbourne does not have a rail line to the airport. This Budget takes steps to change that.”
The federal government is offering to buy New South Wales’ and Victoria’s shares of the Snowy hydro scheme, with the money to be spent on infrastructure projects.
Housing in the inner west of Melbourne will get a boost with up 6000 new homes set be built on old Defence land owned by the commonwealth.
MORE FEDERAL BUDGET COVERAGE:
SCOTT MORRISON HITS ‘RESET BUTTON’ ON BUDGET
TOURISM ONE OF BUDGET’S BIG LOSERS
CHILD ABUSE VICTIMS TO BE COMPENSATED
$15M PLAN TO BOOST VACCINATIONS
GOLD COAST COMMONWEALTH GAMES SECURITY TO COST $34M
KOCHIE’S VERDICT ON THE 2017 FEDERAL BUDGET
AUSTRALIAN DIPLOMAT PAY PACKETS SLASHED
QUIRKY STUFF WE LEARNT FROM THE 2017 FEDERAL BUDGET
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