The Federal Government has unveiled its 2017-18 national budget, with first time buyers and small business owners the big winners, and foreign workers, Australia’s major banks and middle to high income earners the biggest losers.
Last year, the Federal Government’s national budget gave us the usual showbag of fringe-based changes that seemed to affect few people. This year however, the story was a little different. According to treasurer Scott Morrison, this year’s federal budget was honest.
“This is an honest budget: it does not pretend to do things with money we do not have,” Mr Morrison said. “This is a budget and a plan that can be supported.” And while some members of the community will likely support the Government’s 2017-18 budget, others — namely higher income earners and foreign workers — may find it hard to do so.
Below are some of the highlights from the 2017-18 federal budget:
As promised, negative gearing was largely kept off the agenda. But while there were no material changes to this investment policy, the treasurer made it clear that certain tax advantages given to these property investors would be restricted. Negatively geared landlords will no longer be able to claim tax deductions for travel expenses related to owning and renting an investment property. In addition, the rules around depreciation deductions for plant and equipment items have been tightened. As a result, investors will only be able to claim deductions on plant and equipment items (such as washing machines and ceiling fans) that they actually purchased. Meanwhile, investors looking to purchase affordable housing will be rewarded with various tax incentives.
Housing and cost of living changes
In a bid to unlock even more property and create more supply for potential buyers, the government also said it would focus on