Budget 2017-18 will be released at approximately 7.30pm (AEST) on Tuesday 9 May 2017, as the Treasurer, Scott Morrison commences his speech in the parliament.
The treasurer has revealed and given hints as to what to expect from budget 2017-18.
HEALTH PACKAGE:
Mr Morrison has hinted there'll be more money for health. The government is tasked with easing growing cost of living pressures when wages haven't risen to keep up.
"The choices you have to make are about growing your economy but they're also about ensuring the services that Australians rely on and Medicare and the PBS, these are critical services and we've been doing a lot of work in that area," Morrison said.
That should mean unfreezing the Medicare rebate for GPs and making it easier for them to prescribe generics, so medicines are cheaper.
HOUSING AFFORDABILITY:
One can expect a 'comprehensive' housing package from Tuesday’s budget.
Jill Sheppard, a researcher from the ANU says the housing concerns could become a big problem for future governments.
"What we've found is that there is really deep seated concern among the Australian population. Almost all Australians are worried about future generations' ability to be able to own a home. But we still factor this in to our national identity. So there's a real problem really facing the current and future governments that the inability to be able to buy a house as we move forward is really going to eat away at what we think about being Australian means."
Government hopes to address this. Speaking to Nine Network, Morrison promised what he calls a comprehensive package.
"It'll address everything from the needs of those who don't even have a roof over their head to those trying to buy one to put over their head and it will even deal with those who later in life are looking to change their own housing arrangements."
PENSIONERS:
Pensioners will get a boost in Tuesday's budget with a one off payment to help with power bills.
Treasurer Scott Morrison confirmed the cash hand out and said, "All of those payments, that $75 for a single payment, $125 for a couple payment, they will all be paid by the 30th June of this year and it'll be for aged pensioners, disability support pensioners, single parent payments as well as veterans and their partners. "
Independent Senator Nick Xenophon welcomed the move. He said, "That outcome is unambiguously good for those battlers that need help to pay their electricity bills this winter."
SMALL BUSINESS OWNER:
Last year, small businesses were among the biggest winners in the Federal Budget following a reduction in the company tax rate from 30 per cent to 27.5 per cent for those small businesses with a turnover under $10 million dollars.
It only passed the Senate in April and the rate will fall modestly in coming years, with larger and medium-sized businesses to benefit as part of the Government's 10-year company tax plan.
However, small business operators say it is not enough. KPMG Enterprise Tax Partner Brett Mitchell says over 60 per cent of KPMG's clients maintain that reduction will not make a material difference or has not gone far enough.
"It may be they haven't seen the benefit as yet of those tax cuts coming through, dropping from 30 per cent to 27.5 per cent. They're looking at the world stage and seeing Singapore at 17 per cent, UK at 19 per cent and Trump talking about the US going to 15 per cent."
Martin Fahy, chief executive of the Association of Superannuation Funds of Australia, said, "We're looking for some slight changes, primarily around the superannuation-guarantee compliance. We'd like to see the ATO given additional capability to help with lost super. We'd also like to see additional funding for enforcement and compliance, around non-payment of SG. In particular, we'd like to see superannuation contributions included in employment benefits for the purposes of insolvency situations. At the moment, if an employer doesn't pay your SG and they go into insolvency, then you rank quite far down, in terms of the creditors. We'd like to see it set alongside wages."
REFUGEES:
Budget will announce a measure to reduce the cost of bringing refugees to Australia.
For the first time in Australia, private businesses will be allowed to sponsor refugees coming to Australian on humanitarian visas.
SBS World News can reveal the government will shift the cost of 1,000 refugees to private companies, community groups and individuals.
The government says it'll cost about $60,000.
Some of the money will cover airfares and a medical screening, while $19,000 will pay the visa fee.
A further $20,000 will go into a welfare bond that the government can use for any Centrelink payments the refugee needs.
Alex Hawke, the assistant immigration minister says he hopes businesses will sponsor refugees and support them with a job, so they won't become dependent on welfare.
VISAS:
SBS has obtained information about a new government visa program that will allow people to pay tens of thousands of dollars for their migrant parents to come to Australia.
A new visa will allow as many as 15,000 people each year to bring their parents to Australia.
Applicants can seek a three-year visa for $5,000 or a five-year visa for $10,000, with the opportunity of a single renewal for another five years at the same price.
Children will be legally required to buy private health insurance for their parents and promise to cover any extra healthcare costs.
If the 15,000 quota were filled in the first year, the Treasury would bank $150 million in visa fees alone.
SCHOOL EDUCATION:
The government will allot an extra $19 billion into schools over the next decade under a plan labelled 'Gonski 2.0'.
More than 99 per cent of schools will see a year-on-year increase in funding, and on average per-student funding will grow 4.1 per cent a year over a decade.
Federal funding will grow from $17.5 billion in 2017 to $22.1 billion by 2021, and $30.6 billion by 2027.
The per student base amount in 2018 will be $10,953 for primary students and $13,764 for secondary school students.
UNIVERSITY EDUCATION:
Universities will be subject to a $2.8 billion efficiency dividend.
Students will have to pay up to $3600 more for a four-year university degree and start paying back their loans as soon as their income reaches $42,000.
The most expensive degree, medicine over six years, would cost $71,900, up from $68,000.
(With inputs from Daniela Ritorto, Ricardo Goncalves, James Elton-Pym and Gareth Boreham)
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