Federal Budget delivers tax cuts and ‘congestion-busting projects’ targeting Gold Coast

The government has delivered generous tax cuts and narrowed in on fast-growing cities like the Gold Coast with its congestion-busting projects.

THE Morrison Government has delivered a Budget surplus while still offering generous tax cuts and congestion-busting projects targeting fast-growing cities including the Gold Coast.

Treasurer Josh Frydenberg last night framed an election-friendly package with no new taxes, guaranteeing essential services and talking up the economy despite a cooling of the housing market.

Middle-income earners and small businesses are the big winners as the government heads to the polls, either on May 11 or 18. An announcement is expected on Sunday.

The Budget pitch is clearly aimed at marginal seats such as Forde, in the Gold Coast’s north, which Coalition MP Bert van Manen holds with a slim margin and must win for the government to be returned.

“Tonight, I announce that the Budget is back in the black and Australia is back on track,” Mr Frydenberg said in his first budget speech.

Treasurer Josh Frydenberg after delivering his first Budget speech yesterday. Picture Kym Smith

The Budget surplus of $7.1 billion — a $55 billion turnaround from six years ago — is expected to increase to $11 billion in 2020-21 and $17.8 billion in 2021-22, slightly higher than predicted a year ago.

As promised, the Coast will get $112 million for light rail to be extended from Broadbeach to Burleigh Heads, but Mr Frydenberg talked up fast rail.

Assistant Treasurer and Fadden MP Stuart Robert described the Budget as “superb” for the Coast.

“It’s all about connectivity on the Gold Coast, and we have seen money for light rail stage three and fast rail and the M1. This is fully funded with a surplus of $7.1 billion and rising strongly,” he said.

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But Gold Coast-based Senator Murray Watt took aim at Mr Robert, describing him as “out of touch”, and referred this recent scandal where he repaid $38,000 for home internet bills.

“His Budget has done nothing to restore cuts to Gold Coast schools and hospitals,” Senator Watt said.

“It still predicts Gold Coast workers’ wages will barely rise. If Stuart Robert thinks this is superb for the Gold Coast, he needs to get out and talk to Gold Coasters and stop spending time downloading the internet.”

Labor Senator Murray Watt took aim at MP Stuart Robert and the Budget. (AAP Image/Mick Tsikas)

Mr Frydenberg in his Budget speech spoke specifically on an $8 million study into a proposed Gold Coast-Brisbane fast-rail link, which will consider heavy rail south to the airport.

“Central to our plan is a long-term fast-rail vision for Australia. To make this vision a reality, we are providing $2 billion in this Budget for fast-rail between Melbourne and Geelong, slashing travel times in half,” he said.

“Work is underway to develop fast-rail corridors in other areas — Sydney to Wollongong, Newcastle, Bathurst, Orange and Parkes. Brisbane to the Sunshine Coast and Gold Coast.

Melbourne to Shepparton, Traralgon and Wodonga. We are getting on with the job of building infrastructure.”

Congestion and transport will be a major focus.

The Treasurer announced the urban congestion fund would have a fourfold increase from $1 billion to $4 billion.

“This fund will focus on immediate, practical measures to cut travel times within our cities. Removing bottlenecks and improving travel corridors,” he said.

The key points for the Coast in the Treasurer’s speech included:

* Teachers, tradies and nurses — those earning up to $126,000 — benefit from the largest personal income tax cuts since the Howard Government, amounting to $158 billion.

* Single income households could get more than a $1000 extra a year, and families on duel incomes up to $2016. The tax relief will be as soon as returns are submitted in 13 weeks — more than 10 million people will benefit, 4.5 million getting the full amount.

* Cutting small business taxes to 25 per cent, increased access to finance through a $2 billion fund and expansion of the popular instant asset write-off — from $25,000 to $30,000, every time new tools or appliances to that amount are bought.

* A $100 billion infrastructure spend across the next decade, includes the Gateway Motorway upgrade in Brisbane ($800 million) and Daisy Hill to the Logan Motorway on the M1 ($500 million) along with $2.2 billion for safer roads. Regional airports get $100 million.

* Older residents to get 10,000 new home care packages — the increase brings to 40,000 the number approved in the past 18 months.

* Pensioners to get a one-off energy assistance payment of $75 for singles and $125 for couples.

* Funding of $570 million to Federal police and ASIO not just to combat terrorism and extremist threat but “cracking down on outlaw motorcycle gangs and their drug supply chains”.

* The Glitter Strip to be part of major tourism promotion with funding for Tourism Australia increasing from $170 million to $175 million.

Mayor Tom Tate has labeled the Budget a “winner”. Picture: Jerad Williams

Mayor Tom Tate branded the Budget a “winner” for the Coast, noting the tax cuts for small businesses.

“We have 65,000 registered small businesses in our city. We are Australia’s small business engine room so this will put a smile on the faces of thousands of mum-and-dad business operators,” he said.

“I am pleased to see Federal investment in transport including light rail and the fast-train study. I expect Gold Coasters will like what they see in this federal Budget.”

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Gold Coast Central Chamber of Commerce President Martin Hall said he hoped the tax cuts would bring a spike in small businesses.

“If ever there’s an opportunity to have a go, to use the mayor’s phrase, it’s now,” he said.

“Reducing that threshold from an income tax perspective ... will certainly encourage people to maybe take that extra step.

“It’s increasing that business activity on the Gold Coast outside of the tourism, construction and health care side of things.”

Minister for Industry, Science and Technology Karen Andrews said the record funding for tourism and boosting instant asset write offs for small businesses showed the Morrison Government supporting key pillars of the Gold Coast economy.

Karen Andrews also expressed her support.

Mr Frydenberg said the fundamentals of the Australian economy were sound but admitted there were “genuine and clear risks emerging both at home and abroad”.

“The residential housing market has cooled, credit growth has eased and we are yet to see the full impact of flood and drought on the economy,” he said.

“Global trade tensions remain, the Chinese economy has slowed and there has been a loss of momentum in Japan, Europe and other advanced economies.

“Notwithstanding these challenges, it is a testament to the strength of the Australian economy that it is in its 28th year of consecutive economic growth.”