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 Morrison’s third budget.
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 year’s budget is looking pretty good.