How Does The Upcoming Budget Affect You?
Scott Morrison is presenting his first budget and even though he has to make cuts, he also has the tough job of deciding which segment of the population to appease, for elections are near and nobody wants to make the voters angry. Therefore he has delivered a budget which promotes business by cutting the company tax, while at the same time it targets elite earners and takes away all concessions that had been available on the superannuation tax. If a person is from the middle income earners, then they too may rejoice as they have been given a cut in their income tax for the next four years.
Academia gets their just rewards
The budget has bode well for the academia as schools are set to receive an increase of 11.1% in their funding if they are public and the ones of the private variety are set to get an increase of 7%, both of these are by no means nominal and have been long sought after. Combined these will equate to more than $1.2 billion in hard monies granted to schools.
Young jobseekers get new opportunities
Young job seekers are going to get more opportunities seeing that the government is going to invest more than $751.7 million in its aptly titled “Youth Jobs PaTH” (yes that is not a typo, rather it is an acronym standing for “Prepare” , “Train” and “Hire”). For the young men and women who want to follow their own paths, a sum total of $88.6 million will be invested in programs that encourage and aid young entrepreneurs and allow young people to get self-employment. However on the converse side the work for the dole will be gutted and a sum total of $494.2 million will be removed from the program making it harder to enter the program.
Young entrepreneurs, small business owners get a tax cut
One of the most important aspects of the budget is that government will change the official definition of a “small business”. From 2016 onwards a small business will be one that turns overs up to $10million instead of only $2 million. It is estimated that more than a hundred thousand small business owners, new entrepreneurs and self-employed people will come under this umbrella thereby getting a tax relief that they had been denied before.
Online purchases get hit with gst
With all the tax cuts going around, there will be some tax hikes as well. The hardest hit will be online purchases of under $1000 which were exempted from tax till now, but come July 2017 they will be paying tax as per the rules of GST. According to rough estimates, customers who buy these low value goods will be paying taxes to the amount of more than $3 million over the next three years.