Budget to secure Australia’s economic future
Member for North Sydney, Trent Zimmerman, tonight welcomed the release of the government’s Budget to drive jobs and growth.
Mr Zimmerman said the Budget outlined a clear economic plan to create more jobs by successfully transitioning the economy from the resources-led boom to one fuelled by innovation, investment and a more diversified mix of industries.
“Tonight the Coalition has presented a Budget which delivers tax cuts and incentives for local small businesses and relief for hard-working families,” he said
“These measures will encourage workforce participation and business investment to improve growth and create the jobs of the future.
“This tax plan backs hard-working Australians. It will also drive jobs and growth across the country, with real benefits for individuals and businesses here in North Sydney,” he said.
Mr Zimmerman said the government’s Smart Cities Plan would support productive, accessible, liveable cities that attract talent, encourage innovation and create jobs and growth.
“Cities deliver 80 per cent of our economic activity and the Budget tonight confirms our intention to play a federal role in ensuring vital infrastructure is created for our growing cities.”
“This includes $1.69 billion in federal funding, which will support the construction of the new Sydney Metro rail project which will significantly increase services on the North Shore, including two new local stations and a new harbour rail crossing,” he said.
Lowering the tax burden on small business and hardworking Australians
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 17,928 companies in North Sydney.
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 Zimmerman said that this will enable 31,587 businesses in North Sydney 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.”
“As we transition from the mining boom, it is vital that opportunities are created for our small businesses to innovate, grow and employ more Australians,” he said.
Investing in science and innovation
Mr Zimmerman said the Turnbull Government was investing in the ideas boom to create new jobs and keep the living standards high in North Sydney.
“We will continue our $1.1 billion commitment to the national innovation and science agenda, to ensure we are creating opportunities to tap into the jobs of the future,” he said.
Personal income tax relief
Middle income Australians are bearing a growing tax burden.
The Turnbull Government will prevent average full time wage earners from moving into a higher tax bracket, so that when they earn more they won’t be taxed more.
The Government will increase the middle tax bracket threshold from $80,000 to $87,000 from 1 July 2016.
This will stop around half a million taxpayers from facing the second top marginal tax rate.
Mr Zimmerman said that 3,990 average wage earners in North Sydney would be prevented from facing the 37 per cent marginal tax rate this coming financial year. By pushing up the tax threshold on the middle tax bracket we’ll keep average full time wage earners on the lower rate for longer.
Reducing the tax on superannuation for low income earners
The government will also introduce 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 15,228 individuals in North Sydney earning $37,000 per year or less will effectively pay no tax on the money they contribute to superannuation.
Funding increase in schools and health
Mr Zimmerman said total Commonwealth funding to all schools across NSW will increase by $1.2 billion, bringing Commonwealth funding to all schools across the country to a record $73.6 billion over the forward estimates period (2016–17 to 2019–20).
“This is the most significant package of education quality reforms in a generation, providing increases in school funding to the states and territories and non-government sector along with reforms to improve student performance.”
The Turnbull Government will boost the quality of public hospital services, improve patient safety, and reduce avoidable hospital admissions through an estimated additional $2.9 billion in funding. This is on top of the investment is on top of the $18 billion a year already budgeted for public hospitals between 2017-18 and 2019-20.