Explore who wins and who loses as a result of Scott Morrison’s 2017 budget.
Most taxpayers will soon be paying more tax.
The Medicare Levy is set to increase by 0.5 per cent – from 2 to 2.5 per cent of taxable income – to help fund the $22 billion National Disability Insurance Scheme (NDIS) and avoid future budget black holes.
If it’s passed by Parliament, the change will kick in on July 1, 2019.
The Treasurer says all Australians have a role to play in supporting the disability scheme, even if they aren’t directly affected.
Loser: Big banks
The big banks aren’t going to be happy. They’re getting whacked on a number of fronts as the Treasurer works to level the playing field.
The biggest is a 0.06 per cent levy – essentially a new tax – that will kick in on July 1.
It’ll only affect the five biggest banks – the Commonwealth Bank, Westpac, National Australia Bank, ANZ and Macquarie – and will boost the budget bottom line by $6.2 billion over the forward estimates.
Economists warn some of these costs could be passed on to customers, who may then turn to their smaller competitors.
The big banks are also facing new rules on providing credit cards and there’ll be a new authority to help consumers with complaints.
There’ll be more Commonwealth funding per student, for most schools. The Federal Government will give schools an extra $18.6 billion over 10 years.
The Government says it will standardise school funding, but as part of that about two dozen schools will lose Commonwealth funding and about 300 more won’t receive as much as they expected.
Loser: University students
University fees are on the rise. Students will have to pay an extra $2,000 – $3,600 for a four-year course. That’s a fee increase of 1.8 per cent next year, and 7.5 per cent by 2022.
The income level at which you will have to start repaying your HECS debt will also be reduced. Currently, you only have to repay your debt when you earn over $55,000. From July next year, you’ll have to repay it once you hit $42,000.
Universities are also facing a 2.5 per cent efficiency dividend.
The only win for university students is the introduction of Commonwealth Supported Places in sub-bachelor programs like diplomas.
Foreigners are losing out when it comes to visas, employment, property and education.
Under the new Temporary Skills Shortage visa employers will have to pay a levy of up to $5,000 for each foreign worker they employ. The levy will be put towards a fund to train Australian apprentices and trainees.
Foreign investors are being slugged with an extra charge for properties left vacant.
Foreign property owners are also being stung on their main residence; they’ll now have to pay the capital gains tax when they sell it. And foreign ownership of new developments will be capped at 50 per cent.
Australian permanent residents and most New Zealand citizens will no longer be able to apply for Commonwealth supported university places.