2016 Federal Budget Winners and Losers

Tuesday saw not only the 2016 Federal budget release but also a reserve bank interest rate cut of .25% from 2% to 1.75% in a reserve bank first to have the cuts occur on the same day.

There was a generally positive reaction to the 2016 Federal Budget released Tuesday, certainly from any News Corp Media on the topic.

The Herald Sun described in a handy video, the winners and losers of the 2016 budget.

2016 Budget Winners include:

Business:

A reduction to tax rates for small business with a turnover of less than $10 Million dollars. There is also a continuation of the $20,000 asset write off.

Unemployed Youth:

Will have their payments increased and a scheme to encourage employment called PaTH : Prepare, Trial, Hire will be implemented.

80K per Annum Earners:

The second highest tax bracket of 37c to the dollar has been increased to $87K per Annum from 80K.

Working Older Auzzies:

Between the ages of 65 and 74 will not need to put part of their income toward their superannuation.

Women:

Women are encouraged to build their superannuation while on maternity leave with wtheir partners also eligible for certain tax offsets in some scenarios.

In addition to the Herald Sun video on winners and losers;

Everyone who is not so good at maths:

They have not proposed to change the GST rate to a new number. Higher or lower, I think we can all agree 10% is far better in terms of calculating with mental math.

2016 Budget Losers include:

First Home Buyers:

As negative gearing has not pulled back, first home buyers may remain ‘priced out of the market’ due to subsequently higher market prices accessible more-so to small and medium investors.

Higher Income Earners:

The government will seek to find $2.9 Billion from reductions in tax concessions for higher income earners.

Smokers:

Just quit. Projections in cost are aimed to reach $40 a packet.

Public Servants:

More job losses in store for public servants from now to 2019-2020 with the Coalition seeking to recover $1.6 Billion for the budget here.

Disability Support Pension Receivers:

This group will need to justify their claims again in an effort to crack down on welfare rorting.

What are your thoughts on the Governments 2016-2017 budget?