Superannuation and smokes to fund election budget

BY PAWAN LUTHRA

Aday after the budget, P1Vf Malcolm Turnbull aJI but confirmed 2July as the date for the next federal election. All that needs co be done is the drive down to the Gover.nor General's office to formally notify him to issue the writs and then the unofficial election campaign of the past few weeks becomes legit.

Knowing that this will be happening, there was intense pressure on the PM and the Treasurer to deliver a budget which would excite and yet be fiscally responsible. At first overview, they seem co have done chat with a budget that takes away from the wealthy but largely does not disenfranchise the poor. ]\,fiddle Australia does get some loving but not to the extent small businesses do.

Cigarette taxes will help raise funds, overseas firms which have been rorting the system will have to pay their taxes, and superannuation invescors will have some of their benefits and entitlements cut. i'vlonies wiU flow towards business tax cuts, helping smooch out superannuation contributions and ta..xes for middle income families and help young, unemployed people train and gee work. A small amount will also go towards paying down debt, but tl1e budget emergency as identified in the Abbott-Hockey budget has now been downgraded to warning levels only.

From the migrant perspective, the news is generally good. While few will be affected by tl1e loss in superannuation entitlements, more will benefit from the add-ons which the government is offering to .low and middle income earners in superannuation and carry forward entitlements. The bad news is that the government is cappingthe S37 Medicare rebate for doccors' visits which over ti.me will force the doctors co seek co-payment from the patients for their visits. Also, the Government's child care reforms will be deferred by one year to a scarring date of 1July, 2018 due to the Family Tax Benefit reforms required to fw1d the chi.Id care package not being passed by the Senate. This \Viii put pressure on women from migrant backgrounds who are in casual employment. As has been observed, over the past decade or so, migrants from tl1e subcontinent have moved more into selfemployment than any otl1er time in the history of Indian migration to Australia. To tl1ese entrepreneurs, tl1e sweeteners of lower tax and immediate tax deductibility for asset purchases costing less than $20,000 until 30June, 2017 will be welcomed. ln tllis budget, there is a provision of $814.2 million for SBS over three years from 2016-17, good to have this support for the nmlticultura.l broadcaster. Bm interesting co note time it is actually tbe new CEO of tl1e ABCMichelle Guthrie who wants more diversity on ABC and we have not heard a word from tl1e multicultural broadcaster SBS on this topic.

All in aU, a budget which the current government feels that it can prosecute weU during tl1e inevitable election campaign. But, in a few days' ti.o1e, when rbe election is called, both Labor and the Coalition will fire their initial salvos from their traditional positions of strength. Labor will talk about the lack of funding for schools and hospitals in this budget, the Coalition will talk about how their economic management is the best way forward for Australia. The budget will be praised and pilloried - depending which side of politics you are on.