Treasurer Scott Morrison has delivered his second Budget, declaring there are, “better days ahead,” but here’s who won’t be seeing those better days he so willingly claims are coming.
Taxpayers – Majority of taxpayers are going to feel the effects of tax increases. The Medicare Levy is set to increase by 0.5% to 2.5% of taxable income with the aim of funding the $22 billion National Disability Insurance Scheme. In real world terms, Labor MP Emma Husar said, “if you earn $65,000 per year, you’ll pay $325 more each year in tax, but if you earn $1 million per year you’ll pay $16,400 less per year in tax.” This goes to show that this Liberal Government is relying on those worse of in our community to fix their debt woes, those who don’t have the extra to spare.
Uni Students – Students will end up spending an extra $2,000-3,600 for a four year course, a fee increase of 1.8% next year, and 7.5% by 2022. The HECS debt repayment threshold is set to be reduced, which means students will have to start paying back debt when they begin earning over $42,000 a year, instead of the previous $55,000 per year.
Welfare Recipients – Some new welfare recipients will now be subject to drug testing. People deemed to be at risk of substance abuse will be required to undertake random saliva, urine or hair follicle tests for drugs in three locations from 2018. Jobseekers who test positive to drugs will have their payments quarantined. About 450 people each year will be blocked from claiming the Disability Support Pension on the basis of drug and alcohol abuse alone. Many are saying this decision doesn’t really have a clear goal, as many believe those with addictions to illegal substances won’t stop because of a payment quarantine, and will need therapeutic help to stop.
You can view Labor Leader Bill Shorten’s full budget reply here.