Scott Morrison focused on creating jobs, tax relief and hospital funding this year. Here are some of the pleasant and unpleasant Budget measures included in the Federal Budget 2018:
WINNERS
First, many will rejoice that over 10 million low and middle income earners will get a tax break of up to $530 a year or $10 a week starting 2019. The government is hoping for its seven-year personal tax cut package to be realised after multiple elections and Senate crossbench negotiations.
The offset will increase incrementally for those who earn between $37,000 and $48,000, before the $530 offset will be applied to those with an income of $48,000 to $90,000. The benefit will decrease to zero for taxable incomes of around $125,000.
Boutique brewed beer will also be cheaper after a tax cut that provided excise relief to beer makers filling kegs over 48 kg and the government has committed $24.5 billion to road and rail projects across the country as well. Other budget winners include small businesses whose instant asset write offs for purchases less than $20,000 will be extended; and retirees who will be able to earn an increased $300 a fortnight without it affecting their pension.
Meanwhile, here are the losers. A Tobacco Task Force has also been created to focus on the illegal tobacco industry, clawing back $3.6 billion in four years. Importers will be required to pay all duty and tax at the border as a task force targets organized crime groups.
Amazon, Facebook and Google will have to pay more tax to crackdown digital economy. The government will continue its crackdown on black economy, money laundering and multinational tax avoidance while the trial of cashless debit cards for welfare recipients to stop drug use will be extended. The ATO will roll out auditors, teams and a community hotline to target those who avoid tax and hide transactions.
National broadcaster ABC will have a budget cut of $83.7 million in three years and will save taxpayers $3.16 over the same period. Starting 1 July 2019, overseas business involved in online shopping will also be required to calculate their GST turnover the same way as local sellers.
High-profile individuals won’t be able to take advantage of lower tax rates by licensing their fame or image to another entity anymore. These are actors and sportspeople who can license their image of fame to a trust or business. Income from their image or fame goes to the entity for tax benefits. However, all remuneration will soon be included in the individual’s assessable income.