Australian Government sets out the economic and fiscal outlook for Australia and includes expenditure and revenue estimates for the current financial year. It’s the Federal budget for the current year along with three forward financial years for a stronger economy. The budget maintains the national economic growth for the 27th consecutive year. The Budget exhibits the Federals Government’s social and political priorities on how the Government is going to achieve them. Following is the overview.
The Federal Budget has also taken following steps keeping in mind for the next elections.
• Supporting organizations for investing and creation of jobs
• Tax relief for encouraging and allowing Australian to monetize their efforts
• Keeping Australian safe across the Globe
• Guaranteeing essential services reaching every part of the corner
• Government living within its means
• Budget deficit reported in 2018/19 of $14.5 billion, forecasted with a surplus of $2.2 billion in 2019/20.
• Average Economic growth (GDP) predicted of 3.0 percent up to 2021/22.
• Inflation might be 2.25 percent rising to 2.5 percent in 2019/20 and beyond.
• Reduction in the Unemployment rate of 5.25 percent to 5.0 percent within 2021/22.
• Government expenditure to dip to 24.7 percent of GDP by 2021/22.
• Tax to GDP ratio to be maintained under the self-imposed limit of 23.9 percent.
• Net debt to be managed at 18.6 percent of GDP.
• Conservative estimates accounted on commodity prices such as iron ore & coal with a strong rise in exports.
SUPER AND PENSIONS
• Exit fees removed from superannuation accounts when people change funds.
• Youngsters under 25 won’t be forced to pay for life insurance as part of the super fund.
• Pensions Loan Scheme opened to all older Australians without impact on pension or benefits.
• Expanded Pension Work Bonus will now allow pensioners to earn $1300 more per year.
• Wage subsidies allocated up to $10,000 for employers who take on older workers.
• Skills and Training Incentive to allow mature age workers to update their skills.
• Multi-year plan lowering personal income tax apart from being fairer & simpler
• Top tax threshold will increase from $87,000 to $90,000 – meaning 94 per cent of Australians will pay no more than 32.5 cents in the dollar
• Those earning $37,000 or less will save up to $200 on tax
• Those earnings are more than $37,000 up to $90,000 will save up to $530 on tax
• Little tax relief for those earning over $125,000 until 2024/25 when the 37 percent tax bracket is abolished
• Relaxing the Parental Income Tax for access to Youth Allowance by $10,000 per annum per child
• Tax changes to cost $13.4 billion.
• Increase in the total number of home care places by 14,000 over four years at the cost of $1.6 billion.
• $146 million for improving access to aged care services in rural & remote areas.
• $83 million for mental health services to combat depression.
• Creation of an online register for enduring powers of attorney.
• Funding for specific programs run by local sporting organisations & community groups for encouraging elder Australian citizens to maintain their fitness.
• Instant asset writes off for business with a turnover up to $10 million extended to purchases up to $20,000.
• New anti-phoenixing measures ensure small companies don’t get ripped off by those trying to avoid paying bills.
• Extra $250 million allocated for Skilling Australians Fund.
• Changing the stapled tax structures to remove loopholes that give foreign companies a tax break over Australian companies.
• Strict thin cap rules for stopping multinationals from fiddling with debt & reduce their tax liabilities.
• Discussion paper that is finding valid measures for taxing digital business in Australia.
• Black Economy Taskforce recommendations will bring in $5.3 billion over the next four years by targeting sectors that underreport income.
MEDICAL & HEALTH
• The new five-year hospital’s agreement with States & Territories will be delivering $30 billion in additional funding.
• 21st-century medical industry plans to create more jobs in the sector.
• $500 million over ten years for Medical Research Fund.
• Extra $1.4 billion for listings on PBS, including treatments for HIV, spinal muscular atrophy, breast cancer, multiple refractory myelomas, and relapsing of multiple sclerosis.
• $125 million over ten years from the Medical Research Future Fund for Lifeline Australia & Mental Health Research.
• $20.9 million for tests to ensure that debilitating conditions are detected early.
• $154 million to promote healthy living, including $83 million for existing community’s sports facilities & expanding local and school level sporting programs.
• Increased financial support for the Royal Flying Doctor Service.
• $2.4 billion to be invested in public technology infrastructure including supercomputers and satellite technology.
• Refocusing on the R&D tax incentive to support companies that invest in R&D.
• Additional funding to protect farmers from pests, disease & weeds.
• National energy guarantees to see annual power bills fall by an average of $400 a year from 2020.
• Emission reduction target to remain at 26-28 percent.
• In addition to the 10-year $75 billion infrastructure projects announced earlier, the government creates a $1 billion Urban Congestion Fund to improve traffic flow & safety at the state level.
• $3.5 billion allocated for Roads of Strategic Importance initiative upgrading key freight routes.
• $550 million will be spent to address remote housing needs in the Northern Territory.
• Needs-based funding for schools to deliver $24.5 billion more over the next ten years.
• Schools to receive $18.7 billion, with a legislated rise to around $30 billion in 2027.
• National Schools Chaplaincy program extended with a focus on anti-bullying.
• Universal & Unrestricted access to early childhood education extended for a year costing $440 million.
• $50 million to upgrade the security infrastructure at 64 regional airports.
• $122 million for enhancing the screening of inbound air cargo and international mail.
• $122 million to increase border force capability at nine domestic and international airports.
• $160 million for fighting crime and prevent terrorism, including $68.6 million for preventing child exploitation.
Concluding on the topic from a reliable bookkeeper in Melbourne we are proud to state that the Australian economy continues to strengthen, while it is shaking off the downturn in the mining investment. Under the Government’s economic plan, jobs are being created, investment is rising, and the budget is strengthening, which is enabling the Government to guarantee the essential services to all Australians where their citizens rely on. This Budget is about building on the plan to ensure the benefits of stronger economic growth that can be continued to be secured and shared amongst citizens.