When there is an election year, then the budget seems to offers a lot of positivity for you, but sometimes what is good for one would be bad for another.
Positive Impacts
Impact Over Middle-Income Earners – The tax cut limit is now starting for working Aussies from those earning $18,200 a year, the tax relief is actually there for middle-income earners and, those who earn between $48,000 to $90,000 in a year have to pay $550 as their tax amount.
This announcement’s calculation says it doubles the tax a cut was announced last year. If both cuts are collected together, then around $1080 tax relief will be received by singles and for dual income families, this would reach to $2160 as maximum. The average Aussies’ earners are between $80,000-$90,000 would be able to enjoy this benefit.
Commuters – The budget having goods for infrastructure as the new rail and road budget is $15 billion. The $2 billion is safe for fast rail between, Melbourne and Geelong. This is supposed to be the fastest train in Australia having speed 160 km/h and would save much of your time. There are five more rails proposals in Victoria, Queensland and in New South Wales. The Urban Congestion fund is also raised 4 times and many of the parking related issues are focused under that.
Small Businesses – The fast tracking tax cuts are planned for medium and small businesses by five years. The tax rate is having a reduction from 27.5 to 26%. These fast tracks would offer benefits to 970,000 companies. Assets write off is also expanded and extended as well as it covers the purchases under $30,000 with the annual turnover of under $50 million that was revised from $10 million.
Struggling Farmers – The cash of $6.3 billion is committed for regional farmers are there that makes them help in dealing with floods and drought. The lowest cost loans and less interest are also introduced. They also safeguard the crops for future natural disasters.
Cashed-Up Retirees – This year’s budget promises nice perks for older people. Anyone who ages between 65 and 74 must work for 40 hours in a month, incase, they wanted to offer volunteer contribution to their super. From July 1, 2020, the age limit will be changed to 66 and 67. Those who are under that age can make up to 3 years of voluntary contributions.
Mental Patients – For ultrasounds and x-rays around $308.9 million is suggested to support mental health. Scans are usually left burden in the pocket, but, now, this is being reduced along with fewer cost medicines as well. For the Pharmaceutical Benefits Scheme, five drugs are being added to support Batten disease and Hereditary Tyrosinemia Type 1. $5 billion funds are given in clinical trials and other research. A huge amount is there for other medical requirements.
Negative Impacts
High Income Earners – Tax cuts having huge beneficial proposals, but they are not meant for the high earners. This financial year is not having anything special for those who earn more than $126,000.
Big Businesses – The small and medium business, having tax relief, but they are not meant for large scale businesses. If your business has more than $50 million, then there are no tax cuts, even, the government having the strict rules and cuts for big businesses.
First Home Buyers – The first home buyers will feel sorry after this budget as treasurer understands the housing affordability an issue. Their focus is moreover community housing.
People On The Dole – Newstart recipients and the welfare payment for job seekers are not expected to be at the top of this budget. The payment has not been enhanced for many years, despite the efforts of economists and welfare advocates. People having the unemployment allowance are even missed governments energy assistance payments. $75 for singles and $125 for couples for a household assistant with the power bills are paid to the bank accounts for carers, veterans, single parents, aged people on a pension and people with disability support pensions.