The OPMG Budget Roundup

10 May 2018

The OPMG Budget Roundup

The Federal Budget for the 2018/19 Financial Year has been handed down in Canberra.
Here’s a round-up of the information you might want to know.


In 2018/19, the Government projects that

the deficit will be $14.5 billion dollars.

net debt will reach $349.851 billion dollars.

This is down from $18.2 billion last year. The budget is expected to return to a surplus of $2.2 billion by the 2019/20 year. This is up from $341.003 billion last year. It is expected to fall next year as the surplus kicks in.

In addition

the GDP (gross domestic product) will grow by 1.5% p.a.

unemployment will be 5.25%.

inflation will reach 2.25%.

This is down from 2.75% p.a. last year. This is 0.25% down from last year. This is 0.25% up from last year

The Government will

receive $473.7 billion dollars

made up of

$322,980 million in income taxes

$117,500 million
in indirect taxes

$33,265 million in non-taxation income

including $218 million from individual taxes, $4.220 million from the fringe benefits tax, $89,100 million from company tax including $67,527  million from the GST,  $6,200 million from the petrol excise, $12,530 million from the tobacco, and $1,600,000 from 2016/17’s major bank levy including $14,551 from sales of goods and services, and $4,257 million in interest

and

will spend $488.584 billion dollars

including on

defence
($31,215 million)

public order and safety
($5,324 million)

being $7,003 million on the Royal Australian Air Force, and $7,382 million on the Australian Army being $1,224 million on courts and legal services, $2,789 million on policing, and $1,311 million on border protection.

education
($34,736 million)

health
($78,825 million)

social security and welfare ($175,971 million)

including $11,781 million in private school support, $7,687 million to public schools , and $7,062 in Commonwealth Grants including $21,189 million in assistance to the states, and $12,088 million to the Pharmaceutical Benefits Scheme including $46,838 million in income support for seniors, $16,695 million for the National Disability Insurance Scheme, $16,564 for income support for disability, and $8,689 million for carers

 


 

Important measures in the Budget include:

  • tax reform, including changes to the low-income tax offset which means those earning up to $37,000 will save $200 a year, and up to $530 a year for people on incomes up to $90,000; and changes to tax brackets, cutting out the middle tax bracket over seven years – meaning people earning between $41,000 up to $200,000 will pay a flat tax rate of 32.5% by July 2024
  • a freeze in ABC funding indexation, equating to an $84 million dollar cut
  • a new round of “robodebt” electronic debt recovery, saving $373 million in 2021; and savings of $200 million by extending the waiting period for new migrants to access welfare benefits
  • a ban on superannuation funds from charging exit fees for customers changing super, and a 3% cap on fees they can charge accounts that are passive with balances under $6,000
  • $1.6 billion over four years to create 14,000 home care places for older Australians, $146 million to improve age-care in rural Australia, $83 million in increased mental health services for aged care facilities, and $20 million to combat loneliness for older Australians
  • $338 million in mental health funding and suicide prevention research, including $125 million towards research, and increased funding for Lifeline and SANE Australia
  • $161 million over four years to improve satellite navigation
  • $1.6 billion for South Australian roads including $1.2 billion for the North South Corridor; $1.1 billion to build the Perth Metronet$2.1 billion for Western Australian roads including the extensions to the Tonkin Highway; and $220 million  for the Gawler rail line in South Australia.
  • $3.9 billion for Indigenous health, a 4% increase, with $10 billion to be provided over a decade
  • six new drugs for the Pharmaceutical Benefits Scheme to treat refractory multiple myeloma, relapsing-remitting multiple sclerosi, refractory Hodgkin lymphoma, spinal muscular atrophy and breast cancer, costing $1.4 billion over four years

amongst others.