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The winners and losers of the 2018 Federal Budget.

With AAP.

If you ask PwC Australia chief economist Jeremy Thorpe, this budget was a “Slurpee budget”.

“We’re going to get a sugar high as the windfall spending flows through the economy, but hopefully we avoid the brain freeze,” Thorpe told AAP.

Meanwhile, executive director of The Parenthood, Alys Gagnon, said: “Scott Morrison is offering most middle-income families $530 a year in tax cuts, but for many of those same families, that extra money is eaten up by costs that just keep rising.

“… About a quarter of a million Aussie families will be worse off under the government’s new childcare plan. A $530 saving in a tax cut won’t help pay the $100 a day childcare bill. And if you earn less than $37,000, that tax cut is just $200.”

So, who are the overall winners and losers?

WINNERS

Average income earners – 94 per cent of Australians will be on a tax rate of 32.5 per cent or less in 2024, with those on the average wage of $84,600 saving $530 a year.

Seniors – will be able to keep more of what they earn on the side, access equity in their homes for retirement and face a shorter waiting list if they are seeking care at home.

Small business – will get an injection of life from a corporate tax cut and a year-long extension of the instant asset write-off.

The sick – a new public hospitals agreement will deliver an extra $30 billion to 2024, while medicines to treat breast cancer and multiple sclerosis will be made cheaper.

Schools – set to benefit from an extra $24.5 billion under the so-called Gonski 2.0 needs-based funding package.

States – 10-year $75 billion infrastructure package for projects in various states and territories and a $1 billion Urban Congestion Fund to improve traffic flow and safety at state level.

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Expectant parents – Hard copy baby book on a child’s health record will go digital, vaccine for whooping cough will be free for pregnant women, and $3 million has been set aside for a new simple guide for would-be parent to stay healthy and active during pregnancy.

LOSERS

The rich – not much tax relief for those earning over $125,000 until 2024/25 when the 37 per cent tax bracket is abolished.

Banking and financial sector – major bank levy to continue, executive accountability regime to start on July 1 and stronger penalties and enforcement against misconduct in the sector.

Multi-nationals – tax changes to remove loopholes that gives foreign companies a tax break over Australian companies and allow them to fiddle with debt to reduce their tax liabilities.

Digital giants – Discussion paper to come that will explore options for taxing digital business in Australia.

Preschoolers – The budget failed to guarantee funding for kindy and preschool beyond the next 12 months. “Mums and dads need certainty,” The Parenthood’s Alys Gagnon said. “There’s not much more that worries a parent than their child’s education and right out of the gate, parents have no guarantees that their kids will be able to access affordable, quality pre-school.”

Terrorists and pedophiles – $160 million to help agencies fight crime and prevent terrorism, including $68.6 million to prevent child exploitation and abuse.

Visa overstayers – $122 million to increase border force capability at nine domestic and international airports.

Tax cheats – Black Economy Taskforce recommendations to bring in $5.3 billion over the next four years by targeting sectors that under report income.

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