Federal budget 2018: Billions for Gold Coast M1 upgrade and small business assistance

BILLIONS will be spent on the Gold Coast by the Federal Government, with the 2018 federal budget containing big spends on infrastructure, small business and tourism. Here’s the top things to look out for from the Turnbull Government’s election year pitch.

THE $1 BILLION M1 upgrade is the centrepiece of the Federal Government’s post-Commonwealth Games budget rollout for the Gold Coast.

The Turnbull Government used tonight’s federal budget to announce a range of measures which will set the stage for the city’s economy after the Games and maximise the legacy of the international sporting event.

Minister for Finance Senator Mathias Cormann and Treasurer Scott Morrison with the budget papers. Picture Kym Smith

Here’s the 15 things you need to know:

1: The Government has put forward half the cost of upgrading the Gold Coast stretch of the M1 between Varsity Lakes and Tugun as well as the Daisy Hill to Eight Mile Plains section, requiring a 50 per cent commitment from the State Government. A business case study is currently being prepared by the Palaszczuk Government.

M1 BUDGET DOOMED TO STALL

2: The Government is moving forward with a $9 billion inland rail link between Melbourne and Brisbane which reduce freight on major roads and ease congestion.

Treasurer Scott Morrison in delivering the 2018-19 Budget speech tonight admitted “we always know more needs to be done”.

“Our $75 billion ten year rolling infrastructure plan will continue — strengthening our economy, busting congestion in our cities, making rural roads safer and getting our products to the market,” he told federal Parliament.

“Tulla Airport Rail, Western Sydney Airport Rail. Brisbane Metro. Perth Metronet. The MI upgrade on the Gold Coast.”

Australia's Treasurer Scott Morrison unveiled the election-year budget tonight. (AP Photo/Rod McGuirk)

3: The Treasurer announced a $1 billion Urban Congestion Fund to support projects at a State level to fix pinch points and improve traffic flow.

WHY GOVERNMENT MUST FAST TRACK M1

4: The Budget Papers again made no mention of contributing to the Cross River Rail project which is critical to the Coast rail’s future needs. The $5.4 billion plan to double the capacity across the Brisbane River would have created three new rail station’s in the Coast’s fast growing northern suburbs and ensured faster and less crowded trips to the city for workers.

5: No funding was committed to light rail stage 3A, which will connect Broadbeach south to Burleigh. The Federal Government is awaiting the completion of a business case study from the council.

6: $140 million was committed to attract big-budget films to Australia, with the Glitter Strip one of the major locations following the success attraction of the soon-to-shoot Dora the Explorer.

$1 billion was put to the upgrade of the M1. Picture Glenn Hampson

7: The spotlight to be put on the Asian market by Tourism Australia and increased focus on attracting and hosting business events and creating signature experiences in the wake of the Commonwealth Games.

8: A crackdown on businesses which deliberately go bust to avoid paying bills with new anti-phoenixing measures at a cost of $40 million across forward estimates.

9: An extension of the popular small business asset write-off program, which is open to those with a turnover of up to $10 million to instantly write off purchases of up to $20,000.

10: Bigger tax offsets for research and development (R & D) companies, which will boost the Gold Coast’s Health and Knowledge precinct.

11: The budget deficit will remain at $18.2 billion, less than half it was just two years ago and to would fall again to $14.5 billion in 2018-19.

$140 million to attract new films on the back of Dora the Explorer shooting on the Gold Coast.

12: The Budget offers tax relief for middle and low income earners with 94 per cent of taxpayers paying no more than 32.5 cents in the dollar, meaning those earning more than $37,000 a year receive a $530 cut.

13: The Government is promising power bills will fall by $400 on average for every Australian household once the national energy guarantee kicks in from 2020.

14: Aged care has been targeted with the number of home care places to increase by 14,000 across four years at a cost of $1.6 billion. The Gold Coast will be among the greatest beneficiaries of this, with data released earlier this year revealing the over 60s market was worth $3.5 billion to the city, with nearly $1 billion worth of retirement villages in the pipeline.

15: The Government’s needs-based funding at schools to deliver $24.5 billion in benefits or 50 per cent more per student in the next decade. No increase is to occur in the Medicare levy.

The Gold Coast Health and Knowledge Precinct.

STATE OF THE ECONOMY

Mr Morrison said the Government was making real progress after the global financial crisis and end of the mining boom ripped out $80 billion from the economy.

“What have you achieved. What are you going to do now. What does it mean for me,” Mr Morrison said, at the start of his Budget speech.

“These are the questions Australians want answered tonight. So let me get to it.

“A stronger economy. More jobs. Guaranteeing essential services. The Government living within its means. That’s what this Budget is about.

“The Australian economy is now pulling out of one of the toughest periods we have faced in generations.”

Treasurer Scott Morrison Picture Kym Smith

Businesses were responding to the improved conditions by investing again, and confidence was up with more new enterprises starting up.

“We’ve backed small and medium sized businesses with legislated tax cuts and investment incentives,” he said.

“We have invested at record levels to build the roads, railways, airports and energy infrastructure Australia needs for the future.”

The Government predicts the Budget will return to surplus in 2020-21, of $11 billion and increase to $16.6 billion in 2021-22.

But the key for the Coast from the $1 billion in the Budget Papers for the M1 will be whether the Queensland Government agrees to match the funding.

Talks are set to continue for the rest of the year as Labor seeks the traditional 80-20 commitment from the Federal Government rather than the 50-50 deal offered up in the Budget.