Treasurer Scott Morrison handed down the 2017 Federal Budget on Tuesday night, and after a really long speech with heaps of jargon, all we want to know is: HOW DOES THIS AFFECT MEEEE?
Here, Cosmo pulls out the main points from the speech that will impact ~young people~, including how the government plans to tackle the housing affordability crisis, and how things may get a little harder for people who are on the dole.
We’re all going to be paying more taxes
We’re all going to be paying more taxes because from 2019, the Medicare levy is being increased from 2% to 2.5%, to fund the National Disability Insurance Scheme.
The government estimates the tax increase will help make $8.2 billion revenue over four years.
You might be able to afford a home now?
The government knows that hardly of us trying to get our foot in the property market door can afford to do so, because all we’ve been told in the past about buying a house is to “get a good job that pays good money.” (Thanks, Joe Hockey.)
Starting from July 1, young people saving for a deposit to buy a place will be able to salary sacrifice into their superannuation accounts at lower tax rates, to a maximum of $30,000 per person. It also means you can use money from super for a deposit.
According to the government, this scheme means you should be able to speed up saving for a deposit by at least 30%.
Also, they will try to tackle the housing affordability crisis by… building more houses.
Soz, but it sucks to be a uni student
This is generally shit because the gist is that university fees will go up, and students will have to start repaying tuition fees sooner — as soon as you start earning an income of $42,000, when previously it was $51,957.
The government may also cut $2.8 billion from university funding over four years, so, yay for education, right?
You may get drug tested if you’re on welfare
People who receive welfare payments may be subject to random drug tests to make sure they’re, well, not doing drugs. The government will introduce a “modest drug testing trial for 5,000 new welfare recipients” that will run for two years. People who fail the test will be placed on the Cashless Debit Card, which will control how they spend their money aka make sure they aren’t spending it on drugs and booze.
Also, if people fail to show up for appointments, or don’t do their best to find work, or are welfare cheats, they may have their payments cut or face financial penalties — “it has to be a two-way street,” said Morrison.
Alert for smokers
If you’ve been smoking cigars (~fancy~) or rolling your own cigarettes to dodge the tax on pre-made cigarettes, the government is coming for you, announcing they will be subject to the same taxes, which will increase annually for the next four years.
As for climate change…
For the second year in a row, zilch on this.