Federal Budget 2018: What it means for you

The 2018-19 Federal Budget has been handed down by Treasurer Scott Morrison, which is his last before the next election.

Yahoo7 takes a look at how the budget could affect you.

The 2018 Federal Budget is expected to see a tax cut for low and middle income earners. Source: AAP

If you are a low or middle-income earner…

The Turnbull government will splash the benefits of a booming economy on a $1000-a-year tax break for working couples ahead of a federal election.

Treasurer Scott Morrison’s third budget on Tuesday night set out a seven-year plan to flatten personal tax rates, which would put 94 per cent of Australians on a 32.5 per cent or less rate in 2024.

The top tax threshold will increase from $87,000 to $90,000. Those earning more than $37,000 up to $90,000 will save up to $530 on tax.

If you are a high-income earner…

There is not much tax relief for those earning more than $125,000 until 2024/25 when the 37 per cent tax bracket is abolished.

If you are a parent…

Regional families will be offered some relief, with parents allowed to earn an extra $10,000 before their child’s youth allowance is affected.

Schools are set to benefit from an extra $24.5 billion under the so-called Gonski 2.0 needs-based funding package, while a new childcare system starts on July 2.

Universal access to early childhood education extended for a year costing $440 million.

 

Treasurer Scott Morrison and Finance Minister Mathias Cormann ahead of the Federal Budget 2018. Source: AAP

If you are an expectant parent…

Meanwhile new parents will no longer need to keep a paper baby book recording their child’s development under changes announced in the federal budget.

The government is committing $5 million over two years to develop a national digital baby book.

And every Australian mother will be able to be vaccinated against whooping cough for free after the government found $39.5 million to list the vaccine as part of the national immunisation program.

Universal access to early childhood education extended for a year costing $440 million. Source: AAP, file

If you are an older Australian…

This budget will see 14,000 new high level home care packages to help ease a 105,000 wait list of older Australians needing help.

This builds on the 6000 announced in the mid-year budget update. Another 13,500 residential aged care places will also be opened up.

There is a $82.5 million boost for mental health services in aged care facilities.

Wage subsidies of up to $10,000 for employers who take on older workers.

If you are a job seeker…

An extra $250 million has been allocated for the Skilling Australians Fund.

Additionally $89 million more will fund upwards of 40,000 Transition to Work position to help out people between the ages of 15 and 21 who are considered to be more likely to be unemployed in the long-term, according to news.com.au.

More support for youth jobseekers will also be handed to the Brotherhood of St Lawrence who will get $700,000 to set up a Youth Employment Body to ensure “best-practice youth employment service models”.

If you like to drink beer…

A bizarre beer tax that slugs craft brewers 40 per cent more for using smaller kegs has been axed.

A two-tier tax system means draught beer sold in 50 litre kegs are currently taxed at $34 a litre, but beers in kegs under 30 litres are slugged $49 a litre.

A tax on craft beers has been axed by the federal government. Source: AAP, file

If you are a celebrity…

Celebrities will be hit with new rules on their image rights to make sure they are not dodging their income tax.

Tuesday’s federal budget contains a ‘fame tax’ that will make sure celebrities and high-profile people who licence their image rights to other companies pay tax on all the income and non-cash benefits they receive.

Celebrities can currently licence their image rights to a business, which can claim losses on the investment, and then pay just 30 per cent tax on the profits.

If you own a small business…

Small businesses which employ about 3.3 million Australians will get an injection of life from a corporate tax cut and an extension of the instant asset write-off.

The Government extended the $20,000 instant asset write-off for another 12 months.

If you have a medical condition…

Treatments for breast cancer, spinal muscular atrophy, and Hodgkin lymphoma have had their prices slashed in this year’s federal budget.

From June 1, Spinraza will cost patients with spinal muscular atrophy less than $40 a script, and $6.40 for concessional patients, instead of more than $367,850 a year.

There is now Medicare support for dialysis in remote areas, a new listing for spinal surgery, MRI scans for prostate cancer and 3D tests for breast cancer.

If you play sports…

The federal government will provide more than $150 million over the next five years to support grassroots sport and help ensure Australians stay active.

More than $40 million has been allocated in the federal budget to expand the Sporting Schools Program to 5200 primary schools and 500 secondary schools over the next two years, providing free sport-based activities for students.

Community sporting facilities will get a boost through 500 infrastructure development grants of up to $500,000 each, and nearly $30 million will be given to various National Sporting Organisations over four years to increase participation in sport.

If you are in need for mental health support…

Millions of dollars have been set aside in the federal budget to help support people who have attempted suicide.

More than $37 million has been pledged over four years for follow-up care for people discharged from hospital, with $10.5 million going to beyondblue.

Charity Lifeline has been given $33.8 million to bolster its telephone crisis service and to train more staff.