Is Scomo really Santa Claus?

By Steve Marsten

Federal Budgets in an election year is like Santa Claus on steroids. There are things to like; little surprises we weren’t expecting as well as the occasional gift we would like  to give back! Scott Morrison seems to be in his Santa suit a little early.

The Budget provides tax cuts of up to $530 a year for low and middle income earners.  

There is about $25 billion for infrastructure projects that will alleviate transport woes, especially in the outer suburbs of our major cities. Rail, roads and urban congestion are the targets for this funding. Also it is expected that 28,000 jobs will be created!

The budget also will allow older Australians to earn more without their pensions being cut and it commits the Government to a $5 billion increase in funding for aged care including an additional 14,000 high-level home care packages. Also employers who hire older Australians will receive a $10,000 wage subsidy designed to combat age discrimination.

Funded by an $80 billion surge in tax receipts, the budget also promises to deliver a $2.2 billion surplus in 2019. The deficit will be paid down by $126Billion dollars. That should help our credit rating.

The Government is also showing their stripes on their fiscal management by providing Tax cuts for middle Australia that extend for seven years together with efforts to impose fiscal responsibility on debt. Yes - this is definitely an election year budget! However it means we have to elect them twice to get the full measure of the tax cuts.

There are also tough new measures to combat “phoenix” activity. Dodgy operators who deliberately go bust to avoid paying their bills, only to re-emerge from the ashes later will be scrutinised more. These businesses operators who scam customers out of paid-for goods and services, other businesses through lost payments and staff via lost wages and entitlements. Changes will curtail the actions of theses dubious Directors.There is plenty in the budget to absorb and we must remember, this is the Governments wishes not the actual outcome. We need to wait for our colourful parliament and senate to agree to all these wishes before we can bank anything. Lets cross our fingers. For more information on the budget feel free to ring our team at Sothertons on 49721300 or book you place at the Tax and property seminar on 29^th May, 2018.