To some, this topic may be as boring as watching paint dry but trust me, you’ll want to at least know a summary of what the 2016/17 budget means for you (plus you’ll be able to sound smarter at family gatherings – you’re welcome). After all, why wouldn’t you want to know how the government is spending part of your hard earned pay check – your tax money. I’m going to make this short and sweet, so take out 5 minutes of your day to educate yourself on where our economy is heading.
- Are you an Average Income Earner?
Good news for you then! The Government finally wants to keep us folk on a lower tax rate, for a longer period of time. That threshold is going to go from $80,000 to $87,000 if you are a middle-income earner on the 32.5% threshold. I don’t know about you, but a part of me dies a little inside when I see my weekly pay check and how much tax is taken out, so I’m stoked.
- Everyone loves a good raise
Australian wages are said to increase by around 2% – it was 1.5% last year – I wonder what next year will bring?
- The 9-5 is so lame – be an Entrepreneur
There is no better time than right now to start your own business. They’re lowering the small business tax rate to 27.5%. Threshold turnover? They’re increasing it to a massive $10mil from $4mil. Not only is that a pretty sweet deal but it will also encourage outside investment in your business.
- Hate your hour long commute home?
I do. Even though I have Hamish and Andy to keep me company, I’m pretty frustrated that the extra traffic adds on another half hour to my already 40min trip home from the office. The Government is now investing $50 billion in infrastructure. So keep an eye out for road and rail upgrades so you can decrease the hours you spend in your car.
- We love science and technology
You’ve heard it on the news already – the innovation boom is coming! So, get ready to put your analysis skills to work and invest. Not only are there some seriously cool gadgets in the works, but hello new job opportunities!
- Thought about quitting smoking? Let me give you even more of an incentive
There will be four annual increases of 12.5% in tobacco with the first increase being introduced September 1, 2017. Meaning, you’re going to pay more for your smokes. Hang on, I’ll just put that into perspective for you – in a nutshell, the extra money you pay will raise around $4.7 billion in the next 4 years – so you’re practically giving away your hard earned dollars.
- Australian Budget Heading for Surplus
They’re predicting the budget deficit will decrease to a low $6 billion from a massive $37.1 billion come 2019/2020. If you’re not familiar, the budget deficit reflects the financial health of a government where expenditures exceed the amount of revenue coming in. In other words, our government is facing some pretty big debt right now, but it’s great to see it’s on the road to surplus.
If any of that has got your juices going, head over to http://www.budget.gov.au/ to find out more and what it means for you.
Or if you’re more of a visual learner (like me) go to https://www.commbank.com.au/business/federal-budget.html and scroll down to Key Facts.
Until next time,