Changes to superannuation, tax concessions and a crackdown on multinational tax avoidance have dominated this year’s federal budget.
In his first budget speech, federal treasurer Scott Morrison said the coalition has stuck to its plan for ‘jobs and growth'.
“This economic plan is the foundation on which we can build a brighter, more secure future, in a stronger, new economy with more jobs,” said Mr Morrison.
The budget deficit has increased to $37.1 billion for 2016-17. There are clear budget beneficiaries, including small business owners and middle-income earners.
The treasurer announced a 10-year enterprise tax plan that will cut the small business tax rate to 27.5 per cent, while the company tax rate will be cut to 25 per cent over 10 years.
The government will also tackle so-called ‘bracket creep’ by preventing around 500,000 middle income earners from moving into the second highest tax bracket. The upper limit for the middle income tax bracket has been increased from $80,000 to $87,000 per year.
“This is about providing room in our tax system for average full-time wage earners to earn more without being taxed more,” said Mr Morrison.
The federal government will also establish a tax avoidance taskforce to target large corporates and multinationals. More than 1,000 specialist staff in the Australian Tax Office will ‘police and prosecute’ companies, multinationals and high wealth individuals at a cost of $678.9 million.
“Everyone has to pay their fair share of tax,” said Mr Morrison.
The budget papers also indicate better protections to be provided for tax whistleblowers in a measure to take effect from 1 July 2018.
A multi-million dollar program targeting vulnerable young people will see thousands involved in internship programs and receiving on the job training. The $752 million Youth jobs PaTH – Prepare, Trial, Hire will begin from 1 April 2017 and will involve young job seekers participating in intensive pre-employment skills training within five months of registering with ‘jobactive.’
“It is worth trying new ways to get young people into real jobs,” said Mr Morrison.
