The October Federal Budget appeals to families, patients accessing medicines, renters and home buyers, and those in vocational training.
An estimated $28.5 billion in revenue will be clawed back in this budget through a variety of means, including discontinuing some of the previous government’s measures and tax compliance activity.
Here are the winners and losers from the Albanese Government’s first budget.
Young parents were winners from the Federal Budget, with eligibility for Paid Parental Leave expanded to families earning up to $350,000 per year.
The government will also expand paid parental leave from 20 to 26 weeks in stages over the years until 2026, with parents deciding on how to split the leave between them.
To ramp up the scheme, the budget commits more than $530 million between now and 2026.
Alongside the expansion of paid parental leave, the budget subsidises more childcare places, claiming that the higher subsidies will make early childhood education and care more affordable for more than 1.2 million Australian families.
The measure is expected to increase the number of working women, and the number of hours they can work.
Apprentices and trainees
The budget commits $1 billion in a deal with the states and territories to fund fee-free TAFE and vocational educational places, equivalent to 180,000 places next year.
The Treasurer said this was the first part of the government’s plan for almost half a million fee-free TAFE courses in priority areas such as aged care and the digital economy.
The budget also commits $485 million to create 20,000 new university places over the next two years for students from disadvantaged backgrounds.
It helps to tackle the skills shortage by investing $42.2 million to speed up visa processing and raise awareness of opportunities in Australia among potential skilled migrants.
“We’re pleased to see the government maintain the momentum from the Skills and Jobs Summit in the budget,” said CPA Australia’s Senior Manager Business Policy, Gavan Ord.
“A campaign to attract skilled migrants is a great step to ensure Australia is destination of choice in a highly competitive global market for talent. We still need a multi-pronged approach to managing skills shortages in the long-term.”
Home buyers and renters
People struggling to pay rent and first home buyers were also targeted in the budget. The government announced new measures around affordable and social housing and committed to the “Help to Buy Scheme” it announced during the election campaign.
Housing measures include the Housing Australia Future Fund to build 30,000 new social and affordable homes over the next five years. A National Housing Infrastructure Facility will support an additional 5500 new homes.
The Help to Buy Scheme aims to give 40,000 eligible Australians the opportunity to own their own homes with a lower deposit and smaller mortgage. Meanwhile, a Regional First Home Buyer Scheme aims to support another 10,000 new homeowners each year.
The housing measures also open up new opportunities to institutional investors. In particular, superannuation funds will be given incentives to invest in new social and affordable housing through a new National Housing Accord, which aspires to build one million new homes by 2024.
Disclcaimer: The information provided within this article is general information only. None of the comments in these notes are intended to be advice, whether legal, financial product or professional. You should obtain specific advice regarding your particular circumstances from a tax or legal professional.
Copyright © Wilson & Assoc Pty Ltd. All rights reserved.
About Wilson & Assoc
Wilson & Assoc Chartered Accountants provides taxation and business advisory services to individuals, investors and businesses wherever you are based. We provide specialist services to startups and health care providers.
If we can help in any way, we’d like to hear from you.