2015 Federal Budget: The Winners and Losers

2015-15-budget

Following last years controversial budget, Treasurer Joe Hockey announces a win for small businesses, a focus on health and a crackdown on student loans in the new federal budget. Here’s a breakdown of the winners and losers.

Federal Budget 2015

Business

A 1.5% tax rate discount for small businesses, as well as a $20,000 tax deduction for assets purchased by businesses with a turnover less than $2 million will encourage small business and startups in the Australian economy in an effort to raise employment as the mining boom continues to slow.

Families

Families looking to adopt will be encouraged to do so with $33.7 million allocated towards a national support service for those considering overseas adoption. Families earning less than $250,000 annually will be able to apply for ‘The Nannies Trial’, a program that will provide care for children of families that find it difficult to access to regular childcare services.

Welfare & Pensioners

Unemployed youth will now only have to wait 4 weeks, instead of the disputed 6 months proposed in last year’s budget to receive the dole. Employers will also be encouraged to hire older job seekers with a $10,000 subsidy on offer over 12 months if they hire a person over the age of 50 who has been unemployed for over 6 months. Wealthy pensioners will be hit with a tightening of the pensions assets test in a bid to assist over 170,000 low-to-middle income pensioners.

Health

Living organ donor’s win with the Supporting Leave programme extended from 6 weeks to 9 for the recovery period. $600 million has been allocated towards medicine for cancer patients, aiming to help those suffering with melanoma, breast cancer and blindness. However, no increase to hospital funding means that the existing shortfall will remain, placing more pressure on states to provide for their health care facilities. In a controversial move families that choose to not vaccinate their children will lose child care subsidies and family benefits.

$600 million has been allocated towards the medicine for melanoma, breast cancer and patients suffering with blindness.

Environment

Drought stricken farmers will receive assistance with a total package of $400 million budget allocation announced by Hockey. Efforts to protect the Great Barrier Reef will be boosted with an extra $100 million in funding.

Education

Australian’s with outstanding HELP debt who live internationally will be targeted in a crackdown on those with outstanding student loans.

Infrastructure

Motorists in Sydney’s South-west will be able to take advantage of upgraded roads with $2.9 billion allocated to the task. Public Transport initiatives in NSW have however been ignored with no new funding. There was little focus on sustainable energy initiatives with no new money allocated to the Clean Energy Finance corporation and Green Army’s funding reducing by $73 million over the next four years.

Thinking about budgets? Conduct a health check on your personal finances. Get a free quote to see if you can save on your home loan.

 

Blaize Pengilly

Blaize Pengilly

Money Saving Expert at SwitchMyLoan
Blaize Pengilly

Latest posts by Blaize Pengilly (see all)