Aust Govt unveils budget to manage three-point plan to diversity economic base 4 May 2015 (Translation of this article appears in Arabic section) The Australian Government will boost its anti-people smuggling and anti-radicalisation efforts as well as fund migrant resettlement efforts under the 2016 Federal Budget, details of which were announced by Treasurer Scott Morrison. Treasurer Scott Morrison, in his Budget speech, said: “… our future depends on how well we continue to grow and shape our economy as we transition from the unprecedented mining investment boom to a stronger, more diverse, new economy.” “This Budget delivers our economic plan in three key ways: First, by sticking to our plan for jobs and growth … second, by fixing specific problems in our tax system so we can sustainably cover the government’s responsibilities for the next generation … and third, by continuing to ensure the government lives within its means, to balance the budget and reduce the burden of long term debt. “The Turnbull Government understands the economic challenges that Australia faces. This Budget is a practical, targeted and responsible economic plan that meets these challenges by clearing the way for jobs and growth, in a stronger, more diversified new economy.” The Federal Government will deliver an extra $9.2 million for its People Smuggling and Human Trafficking Taskforce. In addition, $2.7 million has been allocated to establish Australia's first Cyber Ambassador in response to cyber security threats. The Cyber Ambassador will promote internet governance and cyber security with the Federal Government also due to set up a $4 million cyber co-operation program for the Indo-Pacific region. Under the Budget, Australia will increase the Emergency Fund to $130 million in 2016-17 for its responses to disaster and other humanitarian crises and another $220 million over three years to address the humanitarian and longer-term needs in Syria and neighbouring countries hosting large numbers of refugees. Another $5 million will support communities impacted by violent extremism and to prevent young people being radicalised. The Government will invest in a national help line for families who fear their children are being radicalised with funding for the Office of the Children’s e-Safety Commissioner to expand digital programs to help families fight violent extremism online. Spending on anti-extremism programs will increase to more than $40 million over four years. Labor’s reaction Labor is expected to back modest personal income tax cuts but oppose company tax cuts for larger businesses. Shadow Treasurer Chris Bowen had already signaled Labor's support for some measures including lifting the income tax threshold from $80,000 to $87,000 to give 500,000 Australians a reprieve from paying a higher 37c tax rate for every dollar earned above the threshold, compared to 32.5c. Also likely to sail through the parliament is an increase in tobacco taxes, which will see the cost of cigarettes rise to more than $40 per packet by 2020. Mr Bowen also said the Opposition would "of course tick" the government's plan to lower the threshold from $300,000 to $250,000 for taxing super contributions at 30 per cent rather than the lower 15 per cent rate. But Labor is still to examine other measures curbing superannuation concessions including: the $1.6 million cap on how much of their superannuation can be invested on a tax-free basis, and lowering the superannuation concessional contributions to $25,000 per year or $500,000 over a lifetime. NSW welcomes lower taxes THE NSW Government has welcomed moves to lower income and business taxes which it says will “support economic growth, lift business and consumer confidence and support jobs”. A NSW spokesman said an extra $2.2 billion in funding from the Commonwealth’s asset recycling fund will be used on infrastructure projects across the state like Sydney Metro, rail, Parramatta Light Rail and a Regional Road Freight Corridor program. “We welcome the restoration of around $1 billion in health funding over the next three years as agreed at COAG and we also welcome the Commonwealth’s additional commitment to NSW schools.” Other Budget measures include: • Growing the 2016 Defence Budget to 2 per cent of GDP by 2020-21, three years ahead of a 2013 election commitment. This will result in an extra $29.9 billion over the next decade with $32.3 billion in 2016-17 and $142.9 billion over forward estimates. • A Contingency Reserve provision of $160 million for a referendum on constitutional recognition of Indigenous Australians and another $160 million for same-sex marriage. • Education, training and child care spending will increase to more than $41.8 billion in 2016-17.$100 million over three years to reduce violence against women and children. • $7.1 million in 2016-17 to fund an extra 12 months of financial counselling for problem gamblers. • An extra $10.9 million over three years to support newly arrived migrants and refugees. • Cutting the small business company tax rate to 27.5 per cent and making it available to all small companies with an annual turnover of less than $10 million from July 1, 2016. The lower tax rate will extend to all companies, progressively reducing to 25 per cent, by 1 July 2026. • The unincorporated tax discount will increase from 5 per cent to 8 per cent from July 1, 2016. The discount will progressively increase to a final discount rate of 16 per cent from July 1, 2026. • An extra $2.1 billion of Budget savings for the NDIS Savings Fund Special Account once it is established which will then be quarantined, with a national roll-out of the scheme by 2019-20. • Commit $15 million to clean up waterways with up to 95 per cent of carp in the Murray Darling Basin expected to be culled under a national carp control plan. • $100 million for Geoscience Australia to map mineral, energy and groundwater potential in northern, and South, Australia. |
