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2018 Budget Summarised

In what is clearly a pre-election budget, the Government has certainly delivered a wide range of announcements likely to be favourably received by Australian individuals and businesses. You really have to look closely to try to find any real losers in Treasurer Morrisonโ€™s third budget. ย 

The 2018 Budget, the good and the bad:

 

  • Tax cuts for more than 1 Million Australians
  • Savings of over $530 for people earning up to $90k, but they will need to wait until after 2019 to see these changes
  • People commuting to work will benefit from $1 Billion Dollars in investment into a transport infrastructure fund
  • Victoria will receive around $7.2 Billion Dollars for transport infrastructure which is inclusive of a rail airport link
  • Parents were looked after with no limit on child Care Subsidy
  • Super Funds to benefit from the abolition of the exit fee
  • Employers will receive a subsidy of $10,000 if they employ older Australians
  • For the older Australian, there will be around 14,000 more home care packages available
  • In the health sector, the government will invest $338 Million in suicide prevention research and mental health research for older Australians
  • A further $83 Million will be used for psychological services in aged care
  • $1.4 Billion will also be used to expand the listing of subsidized medications on the PBS Scheme
  • Australia is maintaining its current freeze on foreign aid

The next hurdle will be navigating the Senate and securing cross-bench support for any measures which are not waved through by the Opposition. From there, time will tell if the announced measures will result in long-term and sustainable economic prosperity for the country but the fact that economic growth this year will be 4.25 per cent (nominal), up from a forecast 3.5 per cent and given the prospect the budget could potentially be back in balance in another two years, this yearโ€™s budget is looking pretty good.