The Budget projections are for a $7.1 billion surplus in 2019-20, which he said was a $55 billion turnaround on when the government came to power.
“Australia is stronger than when we came to government six years ago,” Mr Frydenberg said.
“Growth is higher. Unemployment is lower. There are fewer people on welfare. There are a record number of Australians with a job.”
While the government is earning more than it spends for the first time in more than a decade, Mr Frydenberg has also outlined a long-term planned reduction in net debt.
However, the treasurer said the country faces significant fiscal challenges, including the slowing global economy.
“Communities are feeling the impact of flood, fire and drought. Families face cost of living pressures and everyone one of us wants to see wages growing faster.”
The solutions to those challenges “are not higher taxes”, Mr Frydenberg said, but growing the economy, lowering taxes and investment in infrastructure.
Too see where you sit on the scale of budget “winners and losers” you can use one of these various calculators:
https://www.abc.net.au/news/2019-04-02/federal-budget-2019-winners-and-losers/10939098
We’ve highlighted the key outcomes proposed by the Federal Budget, but you can read the full document here.
Income tax cuts
Middle-income earners will receive immediate tax relief regardless of who wins the election after the Coalition committed to give an extra $550 back to people earning between $50,000 and $90,000.
$100bn spending on infrastructure
The centrepiece of this year’s budget, the government has pledged a $100bn, 10-year spend on infrastructure for roads and rail, bridges, dams, and ports. Around $42bn is earmarked for spending in the next four years.
Budget will pump $550m into bank regulators in response to royal commission
The Morrison government will boost funding for the corporate and banking watchdogs by $550m over the forward estimates.
Permanent migration target to be reduced by 30,000
The government will cut the permanent migration target to 160,000, down from the current cap of 190,000.
Extra $328m to address domestic violence
A March 2019 pledge by Scott Morrison and Kelly O’Dwyer for an extra $328m over three years for measures fighting domestic violence, including frontline services ($82m), safe places ($78m), prevention strategies ($68m), hotline service ($62m), and support and prevention measures for Indigenous communities ($35m).
Funding for a disability royal commission
The federal government will allocate $527.9m over five years for a royal commission into violence, abuse, neglect and exploitation of people with disability.
$1.6bn in extra funding towards roads in WA
Almost half of WA’s $535m of funding from the roads of strategic importance scheme will be spent on the road from Karratha to Tom Price. The remainder includes $75m for the WA sides of the road from Halls Creek to Alice Springs, and the road from Port Augusta to Perth ($50m).
Environmental education and environmental restoration
One of the centrepieces of the Morrison government’s spending on the environment in the 2019-20 budget is $25m over five years for the Harry Butler Environmental Education Centre.
Up to $216m for Kakadu national park upgrade and Jabiru township transition
With the closure of the Ranger uranium mine in 2021 the town of Jabiru must either close or transition to a tourism based economy. Deputy PM and minister for infrastructure, transport and regional development, Michael McCormack said the federal government funding would include up to $70m for roads to “open up Kakadu” and up to $111m for tourism infrastructure and attractions.
Health funding for Victoria
The government announced a $496m package for medical facilities in Victoria for cancer treatment, hospital infrastructure, mental health services and medical research.
Funding for securities agencies
$570m in extra funding has been promised to boost Australia’s counter-terrorism and counter-intelligence operations. The federal police will receive the bulk of the money, getting an additional $512m.
One-off payments to cover energy bills
More than 3.9m Australians will receive one-off payments of $75 for singles and $125 for couples to help cover energy bills. The payments of $75 for singles and $125 for couples will go to 2.4 million pensioners, 744,000 disability pensioners, 280,000 carers, 242,000 single parents and 225,000 veterans and their dependents – provided legislation is passed by 1 July.
$550m for NT remote housing
First promised nine months ago, the federal government this week committed to funding $550m for remote housing in the NT, matching a commitment by the NT government, which will take responsibility for remote housing until 2023 in return.
$313m in new funding for Tasmanian road projects
Tasmania gets $210m from the roads of strategic importance scheme and $35m from the urban congestion fund. The biggest portion of $130m is for the Hobart to Sorrell road corridor.
$1.5bn to complete Adelaide’s north-south road corridor
The federal government has promised an extra $1.5 billion to complete Adelaide’s north-south road corridor.
$172.9m for Hinkler Regional Deal, QLD
One of three regional deals announced by the government so far, the funding package comprises $172.9m for development in the the Bundaberg and Hervey Bay regions
$8m to increase aviation student loans
From January 2020 aviation students planning on becoming commercial pilots will see the lifetime loan limit for students at VET Student Loans approved providers increased from $104,440 to $150,000. The increase lifts the cap on aviation students to the same level as medicine, dentistry, and vet science courses.
$100m for regional airports
$100m funding boost to upgrade regional airports, including safer regional runways, taxiways, and better fencing.
$700m to duplicate rail lines in the Geelong region
$700m will be allocated to duplicate a section of rail in the Geelong region.
$2bn for fast rail link between Melbourne and Geelong
$2.0 billion from 2021-22 for the delivery of fast rail from Melbourne to Geelong to reduce travel times, increase train patronage and ease congestion on the Princes Highway and West Gate Bridge.
Budget 2019 to soften superannuation rules for over 65s
The Morrison government will use Tuesday’s budget to allow 65 and 66 year olds to make voluntary superannuation contributions without meeting the current work test.
New drugs to be subsidised by listing on the Pharmaceutical Benefit Scheme
New drugs for kidney, bladder, liver and skin cancer will be subsidised by the government.
$165m to fund projects under the Adelaide City Deal
Under the City Deals program, the government will provide $165m in funding towards development projects.
North Queensland flood relief
On the back of up to seven years of drought, northern graziers were hit by extensive flooding, wiping out a large percentage of their herds.
Early childhood education
Access to early childhood education has been extended for another year, with $453m committed to extending the national partnership agreement on universal access until the end of 2020.
Savings on refugee support services
The federal government will save $79.9m by supporting newly arrived refugees for longer before making them take part in government-mandated job-seeking.
Christmas Island detention centre
The government’s decision to reopen Christmas Island will cost more than $180m because it is pledging to close the detention centre again before July.
$128.8m to expand the cashless welfare card
The government’s highly controversial cashless debit card for people on welfare has been expanded to cover every welfare recipient in the Northern Territory as well as communities of Cape York in Queensland, with a $128.8m government federal contribution. Further funding details were not published because the government was still negotiating with potential commercial providers.
Mental health and suicide prevention
The government announced an additional $461m investment in a youth mental health and suicide prevention strategy. It includes $111.3m for another 30 headspace services, bringing the total number to 145 by 2021, and $152m to reduce wait times across the network.
Foreign aid to increase… then decrease
The budget papers reveal foreign aid expenditure is expected to increase, in real terms, by 6.6% from this financial year 2019-20, before decreasing by 11.8% between 2019-20 and 2022-23.
Small business instant asset write-off
The Coalition has promised a $400m expansion of the small business instant asset write-off on top of incentive payments of $2,000 to new apprentices in a bid to boost business investment and skilled employment.
Skills package
The federal budget also included a “new $525m skills package” which included $55m of new money and $463m of unspent money from the Skilling Australians Fund (Queensland and Victoria didn’t sign up to the scheme).
$800,000 for Australia Day
The budget includes $800,000 for “additional support for Australia Day activities and funding to undertake a review of the National Australia Day Council’s programs”. The boost for Australia Day comes after the government committed $25m in last year’s budget to a statue of Captain Cook in Scott Morrison’s electorate.
$11m to provide luxury car tax breaks for farmers and tourism operators
The government will amend the luxury car tax refund arrangements so that primary producers and tourism operators will be able to apply for a refund of any luxury car tax paid, up to a maximum of $10,000. The current cap is $3,000. Luxury vehicles above $75,526 ($66,331 for a fuel-efficient version) attract a 33% tax.
$9.5m to teach maths and phonics online
$9.5 million over four years from 2019-20 to strengthen the capacity of teachers across Australia to teach mathematics and phonics through the delivery of online teaching and learning resources.
$17.1m for Pacific Broadcasting
The government has promised to provide $17.1m over three years from 2019-20 to Free TV Australia to deliver 1,000 hours of Australian television content each year to broadcasters in the Pacific.
$73.3m for the ABC and SBS
The government has promised to provide an additional $73.3m for the public broadcasters, though the ABC is still reeling from unexpected budget cuts in 2017.
Savings from social security and the NDIS
Two of the biggest savings in the budget have come from the welfare sector with data-matching technology expected to save $2.1bn over the next five years from social security payments and a slower than expected uptake of plans under the National Disability Insurance Scheme delivering an immediate $1.6bn boost to the budget bottom line.
$6.2bn for infrastructure projects in Victoria
New commitments for Victoria include $396m from the urban congestion fund and $490m from the roads of strategic importance scheme. Dozens of projects have been highlighted in the budget papers, including $1.14bn for suburban road upgrades, $2bn for a Geelong to Melbourne fast rail, $360m for the final stage of the Western Highway, and $300m for sealing roads in the Dandenong Ranges and surrounds.
$7.3bn for roads and other infrastructure projects in New South Wales
Almost half a billion dollars from the roads of strategic importance scheme is being spent in NSW, including $300m for the NSW part of the interstate road from Toowoomba to Seymour and $140 for Tenterfield to Newcastle. $254m from the urban congestion fund will address congestion issues and build commuter carparks around Sydney and the central coast.
$2.6bn for infrastructure projects in South Australia
$220m from the roads of strategic importance scheme will be spent in South Australia on projects including $100m on the road from Port Augusta to Perth, $50m for Cockburn to Burra, and $70 for Renmark to Gawler.
Indigenous scholarships and reduction in student loans for teachers in remote locations
As part of its refresh of the Closing the Gap measures to address Indigenous disadvantage, the federal government has pledged Indigenous scholarships and the reduction or cancellation of student loans for teachers who work in very remote locations.
But we all know by now that budgets and political grandstanding are unlikely to help us to consolidate our wealth and ensure we’re enjoying the highest standard of living possible. To speak with an award winning Perth mortgage broker about tangible ways to save money (eg. by leveraging your home loan), please contact us today.
