Member for McMillan Russell Broadbent said the 2016 Budget was an economic plan for the nation.
“It’s a plan for a strong new economy with more jobs and growth,” Mr Broadbent said.
“As Australia successfully transitions from the mining investment boom to a stronger, more diversified economy, it is vital that our tax system drives economic growth and national prosperity.
“It is vital that we give McMillan businesses every opportunity to invest, grow and employ more locals.”
To make it easier for these businesses to expand and create more jobs, the company tax rate will be cut, with small and medium businesses benefitting first.
From 1 July this year, small and medium businesses with annual turnover less than $10 million will have their company tax rate cut to 27.5 per cent. This will reduce the tax rate for around 3,679 companies in McMillan.
Since many small businesses are not companies, from 1 July 2016, the Government will also increase the unincorporated small business tax discount to 8 per cent and extend the threshold from a turnover of $2 million to $5 million.
After the initial increase, the discount will be increased in phases to a final discount rate of 16 per cent from 1 July 2026.
The Government will also increase access to a range of small business tax concessions to more Australian businesses with turnover of less than $10 million.
Mr Broadbent said this would enable 19,160 businesses in McMillan to access these concessions. Access to the small business capital gains tax concessions will remain at a turnover of less than $2 million.
“Small businesses are the engine room of our local economy and the backbone of our local community. These tax cuts will provide significant benefit to our local businesses and help drive jobs and growth in our local economy,” Broadbent said.
Mr Broadbent said another key Budget measure was the Government’s introduction of a Low Income Superannuation Tax Offset from 1 July 2017. This will ensure that low income earners are not paying more tax on their superannuation than they are on their take-home pay.
“This means that 24,735 individuals in McMillan earning $37,000 per year or less will effectively pay no tax on the money they contribute to superannuation,” he said.
Mr Broadbent believes that working mothers would particularly benefit from the measure.
“Evidence shows that despite living longer than men, on average women retire with 35 per cent less superannuation,” he said.
“Women should not be economically disadvantaged because they take time out of the workforce – the Coalition Government is taking action to ensure the gap in superannuation accounts between men and women is lowered.”
Mr Broadbent said that in 2016–17, the Australian Government would be providing $13.75M of Roads to Recovery funding for local councils in McMillan, for essential road repairs and upgrades.
“Funding from the Roads to Recovery Programme is provided to all local government authorities to assist them maintain and upgrade their local roads,” Mr Broadbent said.
Roads to Recovery funding McMillan – 2016/17
Total Allocation for Period 2016-17 Up to $
|8||Bass Coast Shire Council||1,534,481||M|
|9||Baw Baw Shire Council||2,900,773|
|10||Cardinia Shire Council||2,703,102||M|
|11||Latrobe City Council|
South Gippsland Shire Council
He believes McMillan will also benefit from the continuation of a number of essential funding programmes for rural electorates, with a nationwide investment of $560 million per year from 2019–20 to further support the Roads to Recovery Programme, the Bridges Renewal Programme, the Heavy Vehicle Safety and Productivity Programme, and the Black Spot Programme.
Other key budget measures:
- An additional $1.2 billion over four years from 2017–18 to maintain growth in Commonwealth school funding beyond the 2017 school year at a rate that better reflects the increasing costs of schooling. This measure will bring the Government’s total funding commitment for school education to a record $73.6 billion over the Budget and Forward Estimates period. This represents a growth of $4.1 billion, a 26.5% increase over 2015-16.
- A new $840 million Youth Employment Package for job seekers under 25, including skills training, a voluntary “internship” between four and 12 weeks, and a new Youth Bonus wage subsidy of between $6500 and $10000 for businesses who take on eligible job seekers.
- $102 million to ensure viability of aged care providers in rural and remote areas through the Aged Care Viability Supplement.
- A new $1.7 billion Child and Adult Dental Scheme.
- $100 million in new funding over three years to reduce violence against womenand their children.
- Support for Rural and Remote Registrars, enabling general practice registrarstraining on the Australian College of Rural and Remote Medicine Independent Pathway to claim a higher level of Medicare benefits for the services they provide in rural and regional areas whilst training.
- Rural General Practice Grants Programme to improve rural health services by redesigning Rural and Regional Teaching Infrastructure Grants Programme, in order to create a more streamlined Programme.
- Providing $73.6 million over four years for the network of 55 Regional Development Australia Committees (RDAs), to foster and strengthen local leadership across regional communities.
- Also beginning on July 1 is the roll out of an additional $298.2 million over four years to support the National Ice Action Strategy, which came after the Australian Crime Commission identified ice dealers were targeting rural and regional Australia.
- $160 million to fix thousands of mobile black spots under the Mobile Black Spots Programme all of which goes to rural and regional areas.