By JESSE GRAHAM
HELP for small businesses and a backdown from last year’s more intense measures are two notable standouts from last week’s Federal Budget, with pleasure and pain in its pages for Yarra Ranges residents.
On Tuesday, 12 May, the Federal Government released its budget for the coming financial year, outlining new savings, along with policies for businesses and families across the country.
Small businesses are expected to be one of the best-off groups under the Federal Budget, with the government bringing in a new immediate tax deduction for any assets purchased for less than $20,000.
Any of these assets – a lawnmower, industrial oven, coffee machine or printer were examples given by the government – can have their entire cost deducted from tax, as long as the business has an annual turnover of under $2 million.
Tax on small business is also to drop by 1.5 per cent, and unincorporated small businesses will receive a five per cent tax discount – up to $1000 – each year.
According to treasurer, Joe Hockey, the budget also features provisions for farmers, who will be able to make immediate tax deductions on new fencing, as well as adding $250 million into the Drought Concessional Loan Scheme.
The government backed down on its controversial proposal to bring in a six-month waiting period for Newstart payments for those aged under 25 from last year’s budget, replacing it with a four-week waiting period in the latest budget – the current waiting period is two weeks.
Under the government’s recently-announced ‘no jab, no pay’ policy, parents whose children do not have up-to-date vaccinations will lose access to Family Tax Benefit Part A’s end-of-year supplement and subsidised childcare.
The budget papers estimate this will affect the families of 39,000 children under the age of seven across the country who do not have up-to-date vaccinations.
The policy’s only exemption is for medical reasons – religious or personal objection will no longer allow parents to continue to receive payments – and will begin in January 2016.
The proposed GP co-payment or increased Medicare payments proposed under last year’s budget, which were widely protested and later killed off by Prime Minister Tony Abbott, does not appear to have returned in this year’s documents.
How will the latest Federal Budget affect you? Email editor@mailnewsgroup.com.au or write a letter to the editor at 244 Maroondah Highway, Healesville.
For more budget coverage, including articles on local and state budgets, visit mail.starcommunity.com.
