WINNERS
Parents
For families earning $65,000 or less, up to 85% of the costs of childcare will be paid for by the government, decreasing to 50% for families earning $170,000 or more. Parents working 49 hours or more will be eligible for up to 100 hours of childcare.
Parents will not have to spend extra on preschool programs, which are fully funded.
Shift workers with children
(including nurses, police, firefighters and ambulance officers)
To provide more flexible childcare options, from January 2016 families on incomes below $250,000 will receive a subsidy of $7 an hour for each child for nannies. This pilot project will cost $246m over two years.
Small business owners
Businesses with a turnover of less than $2m will receive a boost with a tax cut of 1.5% on profits. The government will also funnel money into cutting red tape and regulation as well as offering a 100% deduction on expenses of up to $20,000 per item over the next two years with no cap. If you’re an entrepreneur, accessing funding and finance will also be easier.
Poor pensioners
The full pension will now be accessible where a person’s assets – excluding the home – are worth up to $250,000 for single people (up from $202,000) and up to $375,000 for couples (up from $286,500).
Farmers
Farmers who are affected by drought will benefit from the $250m for loan schemes provided by the government as well as an additional $25m to tackle pest animals in these areas. There are also tax deductions for water facilities and depreciating assets, such as fencing, and money for infrastructure projects and community support services.
The military
There is extra funding for the Australian Defence Force to expand military operations in Afghanistan, Iraq and the Middle East.
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LOSERS
Graduates
Students living overseas who have taken out a loan under the Higher Education Loan Programme and whose payments are above $53,345 will be made to repay existing debts from July 2017.
Wealthy pensioners
Couples will qualify for the part pension only if their assets – not including the home – are worth up to $823,000. This has decreased from value of $1.15m.
Foreign backpackers
Workers from abroad on working holiday visas will no longer qualify for the $18,000 tax-free threshold for residents, and from July 2016 will have to pay full 32.5% tax on all their earnings.
Foreign digital business
The “loophole” that allows digital businesses such as Netflix to supply Australians with films, TV programs, ebooks and other downloads from abroad without paying GST will be closed.
Families
About 573,000 families could stand to lose Family Tax Benefit (FTB) Part B if the government succeeds in passing stalled legislation to stop such payments to families whose youngest child is six years or older. The government last year also banked savings of $2.6bn by freezing FTB payment rates for two years.
Mothers or pregnant women
Joe Hockey has changed the terms of paid parental leave benefits, which means that mothers can no longer claim paid parental leave from the state if their employer also provides the benefit. Those whose employer offers benefits that are less than the state offer will receive a top-up.
Indonesia, Africa and the Middle East
There is a 40% cut to Indonesia’s foreign aid budget and $1bn in reductions to other countries including Vietnam, the Philippines and Burma. Aid to Africa and the Middle East will be reduced by almost 75% from $143m to $52.9m.
