Treasurer Scott Morrison has just delivered his first budget on an election year. Here's the tl;dr summary from SMH — Winners & Losers. From tax perspective:
Winners:
Losers:
How are the OzBargainers affected by this year's federal budget?
Only the house wins
I run a casino. Now I have to pay more tax. gg
Hi James. How's Mariah?
By Turnbull leaving negative gearing in place, he is helping rich people buy their 7th house and preventing young people from being able to buy.
Did you know Turnbull bought his 23 year old daughter property over $2 million? No wonder he doesn't want negative gearing to go.
We try to save hundreds of dollars on this site but many Australians will spend thousands more because of Turnbull protecting the wealthy.
If you or your parents have a heart attack or need a scan, you may suffer health wise due to the Liberal's cuts.
If you or your family wants to study, you or your kids may suffer from $100,000 degrees and cuts to school funding.
That makes all average Australians to be losers from this Liberal government.
Self funded retirees also under attack.Even by the RBA. The economy is doomed
Turnball has more than enough money and probably bought that property outright.
The Australian economy is in trouble and even labor won't provide a budget that is good.
Labor's budget got us through the GFC.
It will be much better than austerity and the devastation of another Liberal term.
@arcticmonkey: Labor didn't help us through the GFC, it was the Chinese.
The GFC didn't impact us much as we had the Chinese growth and only now that China has slowed down we're going into a proper recession.
@GameChanger: This argument is largely discounted by George Megalogenis in 'The Australia Moment'. Australia made it through the GFC partly because of capital from superannuation and because of the Government's policy response, as advised by Ken Henry.
@GameChanger: not so much the Chinese as the mining industry. plus a more regulated banking industry than the US/EUR. and the Labor stimulus.
too bad all the profits from the mining boom are gone.
@drillvoice: Who is that? A journalist opinion lol
Have a look at the aggregate expenditure early 2009, it will tell that exports/imports was responsible for offsetting the decrease in private investment. The individual cash back was a massive a joke that barely aided private expenditure. By the time the cash splash had an impact the worse of the GFC was over.
Want to know the best information about the GFC read Ben Bernanke papers.
Turnbull said in an interview if you are young and cannot afford a house, get your parents to buy you a house.
Not very impressed by this budget, some of their assumptions could sink the budget.
Turnbull will not say how much it is going to cost us for the 10 year tax break plan for big business. It has been estimated to be around a $55 billion hit to the budget.
The budget is relying on iron ore to stay around $US55 a tonne for the next 4 years, up from MYEFO estimate of $US39 a tonne in December 2015.
Global miner BHP Billiton does not expect the current revival in iron ore prices to last long.
BHP's president of mining operations in Australia, Mike Henry, says stronger prices may last for a few months but then retreat again.
Mr Henry told the Melbourne Mining Club on Thursday that there is still lots of low-cost iron ore to work its way through the market.
http://www.sbs.com.au/news/article/2016/04/21/bhp-expects-ir…
Your life's a Looney Toon Cartoon whilst extra-terrestrials watch and laugh at your silly daily actives. That's all Folks!!
If you got a tax cut you can work it out on http://www.taxcalc.com.au which has been updated.
Not a whole lot really.
Nice, $16,000 tax cut.
Just to quantify:
"Winners:People earning $80k+ as the bracket will be moved to $87k"
It is only worth $315 per year…
They are making it as a BIG THING.
Hardly worth getting too excited about…
Ha. It's just the psychology thingy. $315 more per year might not feel a lot to those on $87k+. Now imagine the headline of "low income earner will lose up to $315/year" — all hell will break loose.
Yes, forget about the other about $18,000 +medicare they extract from you if you earn between $80k and 87k.
Wow, $315 less now!!!
Edit. On more accurate calculation they extract over $20,000+medicare($1740) from you if you earn $87k
Yeah $315 is peanuts.
What a disappointing budget in many aspects.
To be fair, $315 buys a lot of peanuts
And yet it's another billion dollars of debt for the country PER YEAR. I'm not sure that's a fair trade, I mean, it's not like I'm going to do anything useful with that money.
Yeah $315 is peanuts.
What a disappointing budget in many aspects.
:
To be fair, $315 buys a lot of peanuts
:
sash213:
Explain how
yes they are like $7 a kg. $315 will buy you about 45 kgs of peanuts. That's a lot of peanuts for a year if you are not allergic to them.
Well, as a percentage, it would be almost twice as much for a low-income earner. Also, if you are a high-income earner, the 'extra' isn't worth as much - it just joins your disposable income.
One can look into as $315 worth of eneloop batteries ;)
Or
Almost 79 days worth of morning coffees
Or
Trip to Asia and back
Not sure what calculator the wife used, but we stand to lose ~ $500 per year. We both study full time with 3 kids under 6 years old. really glad she finishes her degree this year.
Yay $315 a year.
It's like getting a free window clean, when you buy a brand new Cadillac.
On a side note, does anyone ever look at the "total tax" and go "Holy christ, that is a crazy amount of money!" ?
Yes that $315 is going to make a huge difference in paying the required $1 million plus for a house in Sydney! Pure pre-election bribery. The budget is in deficit for the foreseeable future, so they give out a tax cut??? And a pretty pointless one at that.
Short-termism, no plan, the usual.
After years of declaring Peter Costello to be a genius of a treasurer, they are now reversing the short-termism based changes he made to superannuation towards the end of his reign. Costello rode along on a wave of economic prosperity, none of which was down to the government only the Chinese wanting to buy lots of rocks from us, and squandered the lot by giving away tax concessions on the assumption I assume that said prosperity would last forever. A genius indeed.
Nothing to alleviate the housing situation for young people as expected. However given previous government attempts to affect this, stupid grants that only inflated prices further, perhaps that's a good thing!
The alternative government is no better either.
Still, I'd rather get $315 than nothing.
You're not getting nothing if that $315 is diverted somewhere else, you're getting a safer and economically stable society when the poorer have more money to keep themselves off the street and have money invested in their health and education. A hole in your pocket rather than a hole in your abdomen.
No guarantee that the $315 will be invested in areas you mentioned. It can be blown in some silly policies.
It can and it most likely will.
@kolorijo: From one perspective, if the person is starving, and they aren't an addict, then it will most likely go on food. Everything else scales. If someone is a millionaire, is it better to give them the same $315? Hardly, they don't appreciate it anyway it's completely pointless
@kolorijo: probably Helicopter ride for the speaker from Melbourne to geelong to attend a private party? ;)
Edit: just realized someone beat me to it.
Are you really ozbargainer? $315 is a lot of money!
Yeah, in Bali. :P
On a most serious note, it truly is not a lot of money for people in the 80K+ bracket, especially when stretched out over a year.
less than $1 a day.
what i don't get is the reasoning behind it, its to save these people from the bracket creep. Then why aren't low income earners afforded the same increase in their rate?
What benefits are given to low income earners in this budget at all?
What benefits are given to low income earners in this budget at all?
From scrimshaw's tl;dr
Accompanying his crackdown of super tax concessions for higher income earners, the Treasurer announced a Low Income Superannuation Tax Offset, which will give people with incomes up to $37,000 a refund of up to $500 in their super account of the amount of tax paid on their super contributions.
So in other words, sweet FA.
About $26 a month.
Wow.
I'm one of those who will get this, but I don't really want it. Its not enough to make the slightest bit of difference to my life and the budget needs more tax revenue, not less.
What does it mean by double super tax? Does that mean I pay 30% tax every time super gets put into my account?
Basically previously if you contribute more than $30k a year into super (or $300k annual taxable income) and you are under 50yo, you get taxed at 30%. Now the threshold gets lowered to $25k (or $250k annual taxable income).
I am far from it so won't worry about that.
Hi Scotty,
I don't think that's quite right - but I could be wrong.
Currently for < 50yo, if you contribute more than 30,000, that amount is taxed at your top marginal rate. That 30,000 is getting lowered to 25,000, as you said.
The other tax is Div 293, which is the extra 15% for income > 300,000 and is now getting lowered to 250,000.
Was it a good decision financially to leave your job to start ozbargain? (feel free not to answer :)
I started OzBargain way before I left my job, and when I left my job 5 years ago I'm already almost debt-free.
It only affects people who are in the highest tax bracket.
I believe it was taxed at 15%, now it will be taxed at 30%, there is still savings but now people might reconsider putting money into their supper.
Yep, might have to start salary packaging some more stuff now :(
I wouldn't recommend putting money into supper either way :)
One has to eat to survive ;)
More negative gearing instead of super contribution as a result?
Not necessarily as this change will probably only impact the behaviour of people who are far away from retirement age. There is still a tax incentive to contribute to super but some might say it's not enough.
All this depends on the person age, as I would imagine 40 year olds might not be as keen as a 60 year old.
I reckon the government should find someone from OzB community to get the budget back on track. We know how to deal with money
If it were up to Ozbargainers we would face deflation for decades lol
"I reckon the government should find someone from OzB community to get the budget back on track"
So true…these people (both sides of politics) spend like a drunken sailor.
But then it is easy to spend money if it is not your money. They are very careful when they spend their own money…and when they do they claim back as much as possible… and more
Remember though that most government spending promotes growth. It's called spending, but in reality it's more like investing.
Not sure why this got negged, its completely correct, basic economics. Spending promoted growth. Well, to clarify, smart spending promotes economic growth. But this government seems to do a lot of stupid spending :(
The government, that is, federal, state and local should not be allowed to spend any money.
Because they "spend like a drunken sailor" all spending should be tendered out to the private sector.
Yes, with the "private sector" companies making large donations to the party in order to get the contracts ;-) !!!!!!
Public service announcements on freebies/deals so no one wastes money!
Nah we'd waste the budget on eneloops
Isn't battery storage the new 'thing' anyway? We'd save money on eneloops!
So… OzBargains political party?
Scotty for PM
If anything, it's pretty much a thankless job where you suffer scrutiny from media and citizen journalists (or just keyboard warriors) everyday, get attacked by opposition for every word you say, need to watch out for stab in the back from your own party, lots of pressure and no matter what you do "hater gonna hate".
Not sure why some people still want to do it especially when your personal worth is already in millions of dollars.
Regardless whether the current / past PMs are good or bad, they have my sympathy.
@scotty: In a politically crippled country like Australia with its two major parties, the PM is a stick figure puppet pulled by the strings of its masters. If you do or say anything contrary to your masters desires, you are fired just like the apprentice =)
Liberal PM is the Sith Lord's Apprentice, and Labor PM is seduced by the dark side hahaha.
Do the world government give discount vouchers and codes?
OB govt announcement - sign up for rent assistance and get 10% off with code "tightrent".
I want an OzB government so I can see Alan Koler on the ABC point to a graph of Eneloop/MicroSD/SSD/$30 SIM packs prices going down.
JV in opposition during parliament- "you still haven't explained what the bargain is!!!!"
Prime Minister - "Members of parliament, we can balance the budget if we use 5%-off vouchers bought with my amex card and then stack with the coupon "surplus" and "fiscal""
Opposition Leader - "ridiculous, buy the vouchers using a new ING pay wave account in amounts of $99. Get 5% off + flybuys. Then buy vouchers from the entertainment book. That would give us a 1.7% better margin. Voucher code " surplus" expired 2 days ago!!! Members of the House! The PM is clearly incapable of running this country and I call for an early election. To reduce cost I'll disband the AEC and use survey monkey.
People earning between $250,000 and $300,000 a year pay double the rate of tax on their super contributions.
Still a 15% saving? Self managed super funds will be hit the most.
The reason why he's earning this sort of money is because he's on OzBargain site.
People who earn in this bracket, don't have one primary source of income.
Many are partners at businesses which they never step foot in and they get a share of the profit which can easily be in 100,000's of dollars.
Yikes, some people can't take a joke
Welcome to ozbargain! You will get used to it.
This was happening before, I just think they;re lowering the limit from 300,000 to 250,000.
https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawi…
The Australian Government is a joke; have a read of this crap.
The Government’s innovative $752 million Youth Jobs PaTH (Prepare-Trial-Hire) Programme will help young job seekers to move off welfare and into employment.
http://www.budget.gov.au/2016-17/content/glossies/jobs-growt…
Employers get free labor + bonuses for doing these 'internships', these sort of rubbish programs distort the job market for the young. Why hire a graduate, when you can get free work done all year round lol
At least then the 99.9% of jobs that say 'experience required' will actually have an audience of employment-seekers that have said experience?
You'll then have ads for entry level roles asking for 10 years of experience.
Tier 1 Tech Support?
Must have experience coding Python, Ruby, and Java with 5 years of Unix administration and a government clearance.
Mind you, you'll need none of that shit on a day to day basis, but we like seeing how little we can pay someone with all that shit in today's economy.
The experience will not be related to a job course, it will doing the work like admin at best.
How will you tell future employers that your internship was gained through centrelink? So many firms look down upon people on centrelink.
The only people who win is the job providers who get paid to run this program and employers who will abuse this. The $752 million should be spent on creating jobs, not training people to work free.
You don't need to tell them you found your internship through Centrelink. You can think of them as your job agency.
@ronnknee: It might slip from the mouth of the employer once they get called for a reference. Smart employers will also figure out the employers who have sold themselves to CL for the $$$.
The quality of these internships will be akin to working for the dole, I imagine. Last time I read work for the dole didn't help many find paid employment.
@GameChanger: I also don't think it's necessarily a bad thing that the person had found the job through Centrelink. Like yes, I would avoid including unnecessary details but at the same time, it's no biggie that the employer knows about it. In the end, it would be about how well the candidate had performed in the interview and the previous job.
@ronnknee: Whilst I don't think its a bad thing, but what does it tell a potential employer?
If you can't obtain a job through your own means then it reflects that you weren't good enough or lazy. Employers are harsh as the cost of hiring a bad employee is very costly in this country. If the Govt really wanted to help the youth they would be thinking about creating jobs, not a short term solution. Programs like this won't help those countless engineering, commerce, law graduates etc… there if there is no jobs.
As long as there's a way to get free money, some people will stay on benefits. Why work when you can get away without it? That's why these programs will see little success.Then again, without work for the dole, we're still just giving away money. Sigh
Yeah this is nonsense.
This is a TLDR edition sourced from ABC
| Winners | |
|---|---|
| Small Business | Tax cut from July 1st (rate reduced to 27.5 percent), the threshhold for eligible businesses will rise from $2m in annual turnover to $10 million. |
| The ATO | In addition to combating multinationals, the Government will also seek to recover lost tax revenue by going after high-income earners and companies avoiding tax by moving profits offshore. A Tax Avoidance Taskforce of more than 1,000 specialist staff will add to the organisation's watchdog capabilities. The staff costs will come out of a $678.9 million boost in funding over the forward estimates. |
| Drivers | The Government will spend nearly $3 billion on new infrastructure projects, much of it concentrated in Victoria and focused on roads. |
| Upper Middle earners | increasing the upper limit for the middle income tax bracket from $80,000-$87,000, the Treasurer has given those towards the top of the earnings pile an extra boost, with roughly the top 25 per cent of working Australians set to benefit. |
| Young Jobseekers | A new initiative, the Youth Jobs Path program, will provide $752 million to get people under 25 and currently on employment benefits trained to enter the workforce. |
| Losers | |
| Multinational Corps | Firms such as Apple and Google have come in for criticism over their creative tax practices. The Government, following in the footsteps of the UK, will put in place a diverted profits tax, which will tax at a higher rate of 40 per cent profits those multinationals attempt to shift offshore. It will apply to large global companies turning over $1 billion or more. The Government hopes it will claw back $200 million in lost tax revenue over the forward estimates. |
| Smokers | The country's 2.5 million smokers will be hit once again, with four annual rises of 12.5 per cent in the tobacco excise meaning smokers will pay 50 per cent more for a pack of cigarettes by 2021. |
| Working Parents | The Government has held off implementing the childcare subsidies, which were a major sweetener in last year's budget. |
| Uni students | While not articulating how they will achieve it, the Government has kept almost $2 billion in savings from Higher Education Reform in the forward estimates. This reform was stymied in the Senate, but its inclusion in this budget indicates the Government intends to pursue this reform if elected on July 2. |
| Public Servants | The public sector is taking a hit in this budget due to an increase in the standard efficiency dividend. The dividend, generally around 1.25 per cent is a standard annual reduction in funding for government agencies. |
| Neutral | |
| High Income earners | Changes to superannuation tax concessions were a clear attempt by Scott Morrison to inject some fairness back into the budget. High income earners are expected to be hit hard by super changes with economist John Daley expecting the measures to bring an additional $2.6 billion dollars into government coffers from the top four per cent of income earners in the 2019-20 financial year. |
| Low income Earners | Accompanying his crackdown of super tax concessions for higher income earners, the Treasurer announced a Low Income Superannuation Tax Offset, which will give people with incomes up to $37,000 a refund of up to $500 in their super account of the amount of tax paid on their super contributions. |
| Healthcare | The major cuts to healthcare funding outline in the 2014 budget have continued to hang over negotiations between the Federal Government and the states. |
| Schools | As with health, cuts to Gonski funding have cast a shadow over the future of public education funding. While the Government announced an additional $1.2 billion for schools between 2018 and 2020, this falls short of the Gonski funding it promised it would match at the 2013 election. |
No sympathy for smokers. Smoking is a choice, not a need, that damages the health of smokers and those around them. It places undue burden on our health care system and is a leading cause of days off work due to illness and disability.
Increasing taxes on tobacco products year-on-year is a great way to cut down smoking rates in Australia and recoup some of their exorbitant health care costs along the way.
no citations
Increasing taxes on Cigs, will just create a black market.
If there is a good margins to be made, just watch how drug dealers will soon have supply of cigs.
Have you ever tried to quit ?, if it was as simple as just waking up one day and deciding not to smoke then nobody would.
It's a choice to start.
Regardless, CBT, DBT, NRT, bupropion are all things that can help.
Let's face it - we're all losers folks.