NEWS DESK
Big bucks for rail but Neil Walker neil@baysidenews.com.au
Mark Dreyfus
‘Big business’ budget slammed by Labor FEDERAL Labor Isaacs MP Mark Dreyfus has hit out at the federal budget as favouring “big business” over health services and education. Mr Dreyfus said Prime Minister “Malcolm Turnbull had one last chance to fix five years of unfairness — and he failed”. “Instead Mr Turnbull gave an $80 billion handout to big business through a corporate tax cut, while locking in cuts to schools, universities and Medicare,” he said. “Budgets are about priorities and this is a government that has prioritised tax cuts for big multinationals over better schools and hospitals. It’s as simple as that. “The government’s insistence on keeping the Medicare rebate freeze in place for years to come will force up out-of-pocket costs to see specialists and hurt residents of Isaacs.” Mr Dreyfus said: “The Liberals will rip away funding from hospitals, schools and the ABC to further boost the balance sheet of big business and the banks.”
A PLEDGE to spend $225 million to electrify rail tracks from Frankston to Baxter was the big ticket item for the region in last week’s federal budget. Federal Liberal Treasurer Scott Morrison confirmed the federal government’s commitment to the project as part of a $7.8 billion package for new roads and rail lines across Victoria. But it seems construction works to extend the metropolitan line to Baxter are still some way down the track. The project is not yet fully funded and a business case has not been completed before the federal and state governments can agree on a funding split. Federal Dunkley Liberal MP Chris Crewther said estimates “are between $500-800 million for the build” when asked. “The $3 million federal Coalition governmentfunded business plan, commenced a couple of weeks ago by the state government, will determine the full build options and associated costs,” Mr Crewther said. “The overall budget for the project won’t be known until the business plan is finished.” The Dunkley MP said it will take about four years to electrify the rail line from Frankston to Baxter after work begins. “Given $225 million is already on the table to build the project, works can start on part of the project quite soon after the business plan is finished and after a build option is chosen from the options presented.” The business plan is expected to be finalised later this year. Labor candidate for Frankston, Peta Murphy, supports the electrification of the line to Baxter but questioned the federal government’s head-
Crafty cut for beers THERE were cheers all around about a tax cut for craft beer brewers after last week’s federal budget but price drops are unlikely to trickle down to drinkers. Federal Treasurer Scott Morrison has decided smaller brewing businesses will no longer be slugged a higher excise rate on smaller kegs under 48 litres in volume. Mr Morrison and Coalition finance minister Mattias Corman visited a brewery in Canberra to toast the craft beer tax drop ahead of the 2018-19 federal budget released on Tuesday 8 May. Dunkley Liberal MP Chris Crewther hailed the tax relief measure as “giving local brewers a fair go” when competing against major brewing firms. “Previously, beer kegs larger than 48 litres have been taxed at a lower rate than smaller kegs, which meant that craft breweries were already having to start behind large companies, with far more resources and buying power than microbreweries,” Mr Crewther said. “This was ridiculous and unfair and it is something I met with Mr Banks brewery in Seaford and Mornington Peninsula Brewery in Mornington about, and then put in advocacy to get changed.” The alcohol excise refund scheme cap will rise from $30,000 a year to $100,000, from 1 July next year for all brewers and distillers. Dan Dainton, co-founder of Dainton Family Brewery in Carrum Downs welcomed the excise change. “It’s a big improvement on an archaic tax that makes producing beer on a small and medium scale pretty expensive,” Mr Dainton said. “The ability to claim $100,000 is fantastic and much welcomed, though it is far from the $500,000 that wine and cider producers can claim. So the
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playing field is still quite unequal in that regard.” Mr Dainton said the tax relief would mean the business could hire more staff. He said drinkers shouldn’t necessarily raise a glass to cheaper craft beer though. “I doubt it will have any impact on pricing for the consumer as energy prices are increasing dramatically,” Mr Dainton said. He said smaller kegs are easier to move and 50-litre kegs weigh about 65kg. “All in all I think it is a smart move for businesses and for the health and safety of everyone involved.” The Independent Brewers Association also welcomed the excise rebate. “Australia’s 450 small, independent brewers will take that additional excise rebate and invest it back in their businesses,” association CEO Ben Kooyman said. “That will mean they will be able to increase their production, invest in quality improvement and most importantly hire more staff to join over 2400 Australians the industry already employs.” Big brewers will also benefit from a flattening of the excise rate if they use smaller kegs. Major corporations including have moved into the “craft beer” label space prompting the IBA to highlight the differences between larger craft beer brewers and smaller independent businesses. Neil Walker
Taking on the big beer brewers: Father and son team Kevin and Dan Dainton established the Dainton Family Brewery in Carrum Downs just over two years ago. Picture: Supplied
Chelsea Mordialloc Mentone News 16 May 2018
line $225 million figure since most of the money will not be spent in the near future. “It’s a hoax to suggest that the infrastructure funding in this budget is actually in the budget,” Ms Murphy said. “It is of concern that promises are being made when there’s no money in this year’s [2018-19] budget.” Ms Murphy noted about $60 million in federal funding for the Baxter line electrification has been allocated up until 2021-23. “I’m sceptical of the Turnbull government’s funding in any of this budget.” The RACV said the federal government’s backing for transport infrastructure upgrades across the state is “great news for Victorians” but noted extended timelines on the projects means there does not appear to be “any hurry” at this stage. “The critical point going forward will be on when this funding is delivered,” RACV public policy and corporate affairs general manager Bryce Prosser said. “The budget infrastructure announcements are good and promise a lot for Victoria, but the detail suggests that it will be some time before Victorians will see any real action on the ground.” Mr Prosser said “more divisive politics” should be avoided. “Victorians want our governments to work together to deliver the best projects for Victoria which cater to the needs of our growing population.” Mr Crewther said the business plan will investigate the cost of extending metro rail to a new Frankston Hospital station, Leawarra station at Monash University Peninsula Campus, a new Langwarrin train station and Baxter station. Committee for Greater Frankston CEO Ginevra Hosking said the federal money “is the first serious commitment to a vital regional project”.