ScoMo has just handed down his 3rd Budget. You know there is an election ahead when you hear the news that “unexpected revenue” means we get tax cuts. It’s a delicate balancing act trying to be fiscally responsible and sucking up for votes at the same time.

I couldn’t wait to find out what was in Budget 2018. Here are a few highlights from the reading of the bill:

  • ScoMo rolled out so many cliches I couldn’t keep up- living within our means, not paying for expenditure on the credit card, national economy is strengthening, affordable and funded, stop the boats, hunting down criminals, protect our values, backing business, keeping Australians safe
  • 5 things we must do 1) tax relief, 2) back business to invest, 3) guarantee essential services, 4) keep Australians safe 5) government must live within our means
  • The usual surplus forecasts (as if they actually a chance of meeting them)
  • Permanent tax relief for low and middle income earners, increase in the tax thresholds to stop bracket creep (incentivise earning more)
  • Instant asset write off <$20,000 extended for another 12 months (buy up for another year)
  • Banning superannuation exit fees (great move)
  • Keeping dividend franking credits (good news for self funded retirees)
  • Sticking with their energy emission targets (looks like private investors will continue to lead the way)
  • Infrastructure – busting congestion in our cities (I bet you can’t wait Sydney!)
  • Increase in care places and improved aged care services in rural Australia (such a confusing area for families)
  • Support services around Elder abuse (this is an increasingly significant issue for any families)
  • More Choice for a Longer Life Plan – healthier living programs (no doubt health is a major issue for the average Australian)
  • Discussion paper to come on taxing digital businesses in Australia
  • Implementing recommendations from the Black economy taskforce  – “bad news for criminals and terrorists”

Posted by Dave Rae

CERTIFIED FINANCIAL PLANNER

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