In 2016, the Budget rhetoric was the infamous three-word slogan “jobs and growth”.
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However, this year the government has take a different approach, adding another word to its 2017 motto: “Fairness, opportunity and security.”
We’ll have to wait until all the details are released to find out who the real winners and losers are, but we can get some idea thanks to the government’s traditional pre-Budget spruiking of big-ticket items.
The federal government has made some attempt to tackle the housing affordability crisis, with the introduction of a first home buyers savings account and incentives for retirees downsizing. Importantly for those who own a house, neither measure will decrease the value of homes.
While New England and the North West are yet to see huge housing price inflation, that will come. Five years ago, Newcastle and other NSW coastal cities were an investor’s dream. But with the sea-side cities beginning to experience sky-rocketing prices, investors are turning their eyes inland to regional hubs such as Tamworth.
The Medicare rebate freeze for doctors’ visits and medical procedures will be eased or lifted. The freeze has made it financially impossible for many rural and regional GPs to offer bulk billing to patients, as the clinics (which are also businesses) struggle with the rising rate of inflation.
Depending on how old your children are, the Budget’s education section is either great news or terrible news. The government is touting an extra $18.6 billion in primary and secondary school funding over the next decade under the Gonski needs-based model.
However, university students face a 7.5 per cent tuition fee hike, higher repayments on government loans, and universities have to meet a 2.5 per cent efficiency dividend.
The details of Deputy Prime Minister Barnaby Joyce’s plan to decentralise government agencies to the country will be revealed. Mr Joyce has also indicated multi-billion Inland Rail will be a delivered. The Melbourne to Brisbane freight line will run past Narrabri and Moree, bringing with it many business opportunities for regional NSW. The Coalition is still hell-bent on reducing the nation’s deficit – Treasure Scott Morrison has previously promised the government will deliver a budget surplus by 2020-21. The quickest way to get to a surplus is to reduce spending. Few funding cuts have been paraded before the Budget, don’t doubt their presence.
