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'It's their money, they should keep it': $530 a year in tax cuts for 10 million Australian workers, billions of dollars for baby boomers and a transport splurge - but NOTHING for first home buyers

Daily Mail logo Daily Mail 8/05/2018 Daniel Piotrowski

Video provided by Nine News

There's $530-a-year in tax relief for average workers and billions for baby boomers - but nothing at all for first home buyers or dole recipients. 

Treasurer Scott Morrison has handed down his third Federal Budget and there are millions of winners and losers plus several shock decisions.   

The biggest winners are the 10 million Australians earning $90,000-a-year or less. Most will be getting a lump sum of several hundred dollars later this year. 

An average worker can expect the equivalent of $10.20 a week to be tipped into their bank accounts once they have completed their tax returns. 

a man wearing a suit and tie © Provided by Associated Newspapers Limited Struggling pensioners who grew up before compulsory superannuation are certain winners after the government pledged billions to support programs.

But first home buyers, welfare cheats, wealthier taxpayers (people earning more than $90,000) and dole recipients essentially get nothing, at least for now.  

'It's a plan for lower taxes and reducing the pressure on households,' a triumphant Mr Morrison said, as he announced a narrow return to surplus a year early in 2019-20.

Daily Mail Australia takes a look at what the 2018 Budget means for you - whether it be tax changes or a bizarre new ban on cash payments of more than $10,000.

a group of people standing next to a person: Sealed with a kiss: Scott Morrison smooches his wife Jenny after delivering his Budget speech © Provided by Associated Newspapers Limited Sealed with a kiss: Scott Morrison smooches his wife Jenny after delivering his Budget speech

If you earn LESS than $90,000 a year...  

© Provided by Associated Newspapers Limited Low and middle-income earners are easily the biggest winners of this year's budget.

Mr Morrison tonight presented a three-step tax plan which will see 10 million Australians receive up to $665 in tax relief during the next financial year.

The tax offset will be accompanied by an increase in the middle tax bracket to $90,000.

FROM ZILCH TO $665: HOW BIG WILL YOUR TAX CUT BE?
Taxable income Annual reduction in tax paid
$20,000 

$0 (pays $0 tax)

$30,000 $200
$40,000 $290 
$50,000 $530 
$60,000 $530 
$70,000 $530 
$80,000 $530 
$84,600 (average wage estimate)$530 
$90,000 $665 
$100,000 $515 
$120,000 $215 

Mr Morrison hit back at claims Australians will be 'disappointed' in the $10.20 a week payout.

People could use the funds to buy school uniforms and books for the year or pay off their car registration, he argued. 

'Anyone who says $530 tax relief (the amount average workers will get) is 'no relief' is out of touch,' he told reporters at Parliament House on Tuesday afternoon.  

If you earn MORE than $90,000 a year... 

Bad luck - you won't be getting much personal income tax relief, at least, this year. 

Workers above $90,000 will still receive a tax offset - but it gradually reduces until tax relief 'reduces to zero at just over $125,000', Mr Morrison said.

The government claims it is committed to delivering bigger tax cuts to higher income earners in the future. 

But for that to happen the Turnbull government needs to keep getting re-elected. 

a close up of a newspaper © Provided by Associated Newspapers Limited Mr Morrison announced he will increase the new $90,000 tax relief threshold to $120,000 from July 1, 2022.

The fourth highest tax threshold, currently between $90,000 and $180,000, will be abolished in 2024-25.

Mr Morrison said that will mean millions of people will never find themselves forced into higher brackets, also known as bracket creep. 

a group of people standing in front of a crowd: Some workers will be better off thanks to the new tax relief - but others won't (stock image) © Provided by Associated Newspapers Limited Some workers will be better off thanks to the new tax relief - but others won't (stock image) Small businesses are also set to reap the benefits of a further 12-month extension of the $20,000 instant asset write-off.

Meantime, big companies will see their corporate tax rate progressively reduced to around the OECD median by 2026.   

If you are elderly...

a person posing for the camera © Provided by Associated Newspapers Limited There are plenty of goodies on offer for the older generation - including an expansion of what has been dubbed the 'baby boomer bonus'.

Before tonight's Budget, pensioners could earn more than $6,500 a year before it affected their pension.  

The Treasurer announced tonight he will increase that earning cap by a further $1,300 a year. It will also extend to self-employed individuals for the first time. 

That will be a relief to older Australians who still work but also receive the age pension. 

The government will also fund 20,000 new home care places to help older Australians stay at home for longer.

It will also expand a reverse-mortgage scheme which allows some pensioners to borrow against the value of their home.

If you are a first home buyer... 

a sign in front of a fence: Sold - but not to a first home buyer. No changes were announced to ease the pressure of high house prices © Provided by Associated Newspapers Limited Sold - but not to a first home buyer. No changes were announced to ease the pressure of high house prices If you were hoping for good news from the Budget, you will have to wait another year.  

No changes were announced to help ease the pressure of high housing prices, with the Government choosing tax relief instead. 

If you like paying for things in cash…

In a surprise move, it will soon be illegal to make cash payments of over $10,000 to businesses for goods and services.

From July 1, 2019, payments of $10,000 or more for goods or services will have to be made with a cheque or through an electronic payment system like EFTPOS. 

'This will be bad news for criminal gangs, terrorists and those who are just trying to cheat on their tax,' Mr Morrison said.

If you drive or catch the train... 

a close up of a map: This map shows where the government will spend nearly $25billion on roads and rail networks © Provided by Associated Newspapers Limited This map shows where the government will spend nearly $25billion on roads and rail networks A whopping $24.5 billion will be poured into building infrastructure around the country which will, eventually, reduce travel time, the government claims.  

Daily Mail Australia's graphic, below, shows the biggest winners in the roads and railways splurge are commuters in Victoria - the recipient of $8 billion.

The most eye-popping promise is a $5 billion investment to build a rail link between Melbourne and Tullamarine Airport, 20km north of the city. 


a passenger train stopped at a station: Coming soon? The government is splashing $5 billion on a Melbourne airport link train © Provided by Associated Newspapers Limited Coming soon? The government is splashing $5 billion on a Melbourne airport link train But it's still many years before construction starts, with Mr Turnbull last month describing 2020 as an 'ambitious' target.

Mr Morrison has pledged more than $1 billion to extend Perth's Metronet network and $2 billion to improve the M1 Motorway, also known as the Pacific Highway which connects Sydney with Brisbane.

Another $1 billion will be used to expand the choked highway between Brisbane and the Gold Coast and more than $950 million to build a bypass near Coffs Harbour.

If you are a welfare cheat or a criminal on the run...  

Welfare recipients with unpaid court fines or outstanding criminal warrants will be targeted under new hardline measures laid out in the federal budget.

People with outstanding Centrelink debts of more than $10,000 will also be aggressively pursued.

a group of people standing next to a person: Unemployed criminals will have their Centrelink benefits cancelled under a new govt plan © Provided by Associated Newspapers Limited Unemployed criminals will have their Centrelink benefits cancelled under a new govt plan 'We will ensure our targeted safety net helps people when they need it, but that people receive only what they are entitled to, nothing more and nothing less,' Social Services Minister Dan Tehan said.

'When welfare recipients have received money they are not entitled to, we will ensure those debts are repaid.' 

If you are a university student...

There isn't much, although regional university campuses will benefit form additional study places, thanks to a $123.6 million investment.  

The government will support new bachelor degree places at the Sunshine Coast University, the University of Tasmania and Southern Cross University. 

If your power bill is too large…

Good news, maybe. 

If it's approved by state governments - and it is a strong 'if' - the National Energy Guarantee will see the average power bill shrink by $400 a year.

If you pay the Medicare Levy...

You won't have to pay more tax. 

Mr Morrison has scrapped a proposed 0.5 per cent increase in the Medicare Levy. He only proposed the hike last year.

Better-than-expected tax receipts mean the hike - introduced only last year - is no longer necessary, he said.

a close up of a piece of paper: Mr Morrison announced the scrapping of a previously proposed 0.5 per cent Medicare levy increase (stock image) © Provided by Associated Newspapers Limited Mr Morrison announced the scrapping of a previously proposed 0.5 per cent Medicare levy increase (stock image) 'The reason we proposed to increase the Medicare levy was only to fully fund the gap left behind by Labor on the (National Disability Insurance Scheme),' Mr Morrison said.

'We no longer believe we need to do this.'  

If you have children...

The government's childcare package begins on July 2 this year, with increased support to a larger number of families.

Preschools will benefit from $870 million in total funding for the 2018 and 2019 school years.

Some $440million will be used to extend the Universal Access to Early Childhood Education program.

a group of people sitting at a table: Education (stock image) © Provided by Associated Newspapers Limited Education (stock image)

The Government has backed the Gonski 2.0 review and has created a $24.5billion Quality Schools package.

If you are on the dole... 

Nothing has changed, even despite the big business lobby calling for an increase to the dole, which is officially known as Newstart. 

Most single people receive about $538.80 a fortnight, or roughly $38.40 a day, as part of the unemployment program.

If you are expecting a baby....

A free whooping cough vaccine will be offered to all pregnant women from July 1, under new measures announced tonight. 

Health Minister Greg Hunt paid tribute to two infants who died from the deadly disease as he announced the $40 million move this week. 

a person sitting on a bed: Pregnant women are better off - with the government adding the whooping cough vaccine to the national immunisation program © Provided by Associated Newspapers Limited Pregnant women are better off - with the government adding the whooping cough vaccine to the national immunisation program

Pregnant women are better off - with the government adding the whooping cough vaccine to the national immunisation program

'I know what a devastating impact this disease can have on families and beautiful young children like Dana McCaffery and Riley Hughes,' he said.   

Vaccinating pregnant women is the most effective way to protect newborns from the illness, as newborns cannot be vaccinated until they are six weeks old.   

If you are a smoker...   

A crackdown on the black economy includes changes to how tobacco is taxed, making it harder for those trading in illicit cigarettes.

Tobacco will be taxed when it enters Australia rather than when it leaves warehouses and enters the domestic market, beginning in July 2019.

Beginning on the same date it will be illegal to import tobacco without a permit, and the black market in cigarettes will be tackled by a new multi-agency Tobacco Taskforce. 

a man wearing a suit and tie: Scott Morrison has touted 'the likelihood of cheaper craft beer' © Provided by Associated Newspapers Limited Scott Morrison has touted 'the likelihood of cheaper craft beer'

If you like craft beer...

It's increasingly popular - and now the government will axe a 40 per cent tax on smaller kegs typically used by craft beer brewers. 

The aim is to level the playing field between boutique breweries and mass producers. 

'This not only champions the craft brewers that we've all grown to love, it raises a very tantalising prospect for Australians: the likelihood of cheaper craft beer,' Mr Morrison said. 

But despite the government's claims, there are not much evidence craft brewers will slash prices substantially. 

If you're an environmentalist...

The has announced a half-a-billion dollar plan to save the world's biggest living thing, the Great Barrier Reef.

The reef has been reeling from bouts of coral bleaching and the threat of climate change. Just this month, scientists recently revealed a 2016 heatwave had resulted in a 'catastrophic die-off' of coral.

The Government said the funds will go towards improving water quality and fighting pests.

If you're famous...

Celebrities will be hit with new rules on their image rights to make sure they're not dodging their income tax.

Celebrities can currently license their image rights to a business, which can claim losses on the investment, and then pay just 30 per cent tax on the profits. 

But new rules will make sure celebrities and high-profile people who license their image rights to other companies pay tax on all the income and non-cash benefits they receive. 

The money raised from the change is "unquantifiable", the budget said. 

Man in the middle: Scott Morrison, surrounded by advisers and journalists, on Tuesday © Provided by Associated Newspapers Limited Man in the middle: Scott Morrison, surrounded by advisers and journalists, on Tuesday

THE WINNERS... 

Average income earners - 94 per cent of Australians will be at a tax rate of 32.5 per cent or less in 2024, with those on the average wage of $84,600 saving $530 a year.

Seniors - will be able to keep more of what they earn on the side, access equity in their homes for retirement and face a shorter waiting list if they are seeking care at home.

Small business - will get an injection of life from a corporate tax cut and a year-long extension of the instant asset write-off.

The sick - a new public hospitals agreement will deliver an extra $30 billion to 2024, while medicines to treat breast cancer and multiple sclerosis will be made cheaper.

Schools - set to benefit from an extra $24.5 billion under the so-called Gonski 2.0 needs-based funding package.

States - 10-year $75 billion infrastructure package for projects in various states and territories and a $1 billion Urban Congestion Fund to improve traffic flow and safety at the state level.

Expectant parents - Hard copy baby book on a child's health record will go digital, a vaccine for whooping cough will be free for pregnant women, and $3 million has been set aside for a new simple guide for the would-be parent to stay healthy and active during pregnancy.

AND THE LOSERS 

The rich - not much tax relief for those earning over $125,000 until 2024/25 when the 37 per cent tax bracket is abolished.

Banking and financial sector - major bank levy to continue, executive accountability regime to start on July 1 and stronger penalties and enforcement against misconduct in the sector.

Multi-nationals - tax changes to remove loopholes that give foreign companies a tax break over Australian companies and allow them to fiddle with debt to reduce their tax liabilities.

Digital giants - Discussion paper to come that will explore options for taxing digital business in Australia.

Terrorists and pedophiles - $160 million to help agencies fight crime and prevent terrorism, including $68.6 million to prevent child exploitation and abuse.

Visa overstayers - $122 million to increase border force capability at nine domestic and international airports.

Tax cheats - Black Economy Taskforce recommendations to bring in $5.3 billion over the next four years by targeting sectors that underreport income.

SOURCE: AUSTRALIAN ASSOCIATED PRESS 

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