Federal Budget 2018-19
Posted on May 16th, 2018
In addition to the major budget items including infrastructure, health and education, last year’s federal budget had a strong focus on small business. This year’s budget has focussed on a number of longer term tax incentives for individuals and SMEs and some new initiatives:
Small Business
- The Ten Year Enterprise Tax Plan includes legislated tax cuts for around 3.3 million small and medium Australian businesses and will progressively reduce the corporate tax rate for all companies
- The $20,000 instant asset write-off has been extended for a further 12 months to 30 June 2019
Major infrastructure
- $6.7B for the Bruce Highway
- Inland Rail – $9.3B for the Melbourne to Brisbane Inland Rail project, with preparatory work underway and construction due to commence this year (estimated 16,000 jobs during construction)
- Western Sydney Airport – up to $5.3B to build Western Sydney Airport with construction due to commence this year and will be operational by 2026
Regional tourism and communities
- $500M committed to the Great Barrier Reef, through improving water quality, combating crown-of-thorns starfish and conducting scientific research.
- $200M for a third round of the Building Better Regions Fund, which supports regional infrastructure and community investments. This is in addition to the Regional Growth Fund, $272M in larger regional infrastructure projects that support long-term economic growth and create jobs in regions undergoing structural adjustment
New initiatives:
- A 21st Century Medical Industry Growth Plan to deliver $1.3B to support Australia as a global health industry leader in medical technology, biotechnology and pharmaceuticals
- $2.4B over 12 years to boost Australia’s research, science and technology capabilities
- $1.9B in research infrastructure over 12 years to support Australia’s world-class research sector
- Investment in digital infrastructure to improve the accuracy of GPS and satellite imagery to promote the competitiveness of sectors like agriculture, mining, and marine industries.
- Support for the development of Australia’s artificial intelligence (AI) and machine learning capability to keep pace with global progress
- $24.5B of extra schools funding over a decade
- A new public hospital agreement to deliver more than $30 billion in additional funding between 2020-21 and 2024-25
- Funding for the Medicare Benefits Schedule and the Pharmaceutical Benefits Scheme is guaranteed through the Government legislated Medicare Guarantee Fund
- From 2 July 2018, the Government’s New Child Care Package will come into effect
- $45M earmarked for tourism projects as part of the Building Better Regions Fund to help move tourists beyond major cities
- $2.6M to Austrade for continuation of the Approved Destination Status scheme
- $535.8M record spend to accelerate the delivery of the Reef 2050 Plan in recognition of the environmental, economic, social and cultural value of the Great Barrier Reef
- $17M funding increase over four years for Tourism Australia
- $3.5B to establish the Roads of Strategic Importance Initiative
- $140M over four years to establish the Location Incentive Funding Program to encourage more international productions to film in Australia
Australian Mining: Industry welcomes federal budget reforms
- Forecast mining export growth of 4% for 2017-18 and 6.5% for 2018-19 and industry capital expenditure expected to grow by 3.5% in 2019-2020
- Australian businesses will contribute more than $100B a year in company tax payments by 2021-22
Regional Australia Institute – Top five new regional initiatives in Budget 2018-19
- Regional Employment Trials Program – 10 selected regional trial sites will get help to better respond to employment challenges
- Additional Infrastructure Funding – a series of new regional projects as part of its on-going $75B National Infrastructure Pipeline
- Stronger Rural Health Strategy and Regional Aged Care Investment – $83.3M Stronger Rural Health Strategy to build the capacity of the health workforce to meet needs
- Education – $28.2M over four years to expanded higher education places
- Commonwealth Commitment to the Regional Australia Institute
CCIQ – Some good measures, but fears for genuine budget repair
- Government remains committed to company tax cuts, with the remainder of the package aimed at reducing the company tax rate to 25 per cent for all companies by 2026-27
- Extension of the instant asset write-off provisions for small business capital purchases under $20,000
- $5.2 billion in Federal Government funding for infrastructure projects across Queensland
Australian Tourism Export Council
- boost to the tourism export sector through investment in destination marketing and support for regional tourism development according to the Australian Tourism Export Council (ATEC)
- budget commitment reveals the true strength of our industry
Queensland Resources Council – No surprise Federal Budget welcomed by resources sector
- The Federal Budget also is expecting an extra $3.7 billion in taxes over the next four years based on improved mining profitability on the back of higher commodity prices
- Initiatives to promote science, technology, engineering and mathematics (STEM) and develop satellite technology were positive investments for the future of the resources sector
- $260 million to develop the satellite technology which will help the resources sector benefit manage mine infrastructure, mine safety and use more precise data for on the mine site
Michelle Landry MP – Landry welcomes 2018 Budget
- Forecast a return to modest budget balance in 2019-20, increasing to a projected surplus of $11B in 2020-21
- Better childcare – 5,119 local families in Capricornia to benefit
- Supporting older Australians to stay in their homes
