CostWeb News
2018 Federal budget update.
Wednesday, 9 May 2018What you need to know.
House prices are moderating in Sydney and Melbourne
and this is starting to put the brakes on residential construction in our two
biggest cities. The budget benefit to us and our construction clients is the
funds allocation to infrastructure spending, and the certainty this provides. This
will create work for the construction sector at a time when it is going to be
needed.
$5.3bn
Western Sydney Airport
$1.5bn
Westconnex
$2.9bn
Western Sydney Infrastructure Plan
$971m
Pacific Highway Coffs Harbour bypass
$400m
Port Botany Rail line duplication
Victoria
$1.7bn
North east Link
$500m
M80 Ring Road
$500m
Monash Freeway upgrade
$5bn
Melbourne Airport Rail link
$475m
Monash Rail
Queensland
$3.3bn
Bruce Highway
$390m
Beerburum to Nambour rail duplication
$1bn
Pacific motorway Brisbane to Gold Coast
$300m
Brisbane metro
South Australia
$1.2bn
North South corridor in Adelaide
$220m
Gawler Rail line electrification
West Australia
$1.05bn
Metronet rail
$944m
Perth congestion
$560m
Bunbury outer ring road
Northern Territory
$180m
Central Arnhem road upgrade
$100m Barton Highway Corridor
The projects listed above are well known, and much of
the funding was announced in previous budgets. This funding was largely
expected by the market. There are also a number of new projects where funding
is now allocated: -
$9.3bn
Inland Rail
$3.5bn
roads of strategic importance
$5-6bn
on less well specified road projects.
The biggest headline in the budget announcement is the income tax cuts.
The global economy is improving, commodity prices are higher, company profits are up and the government has gained a tax and royalty windfall.
A
number of measures have been introduced to reduce over claiming of work related
tax deductions and rental losses. Money is allocated for more tax audits and
prosecutions related to improper claiming of tax deductions. Quantity surveyors
preparing depreciation schedule should check and familiarise themselves with any
changes here.
An
economy wide cash payment limit of $10,000 is introduced from July 1 2019. This
measure attempts to reduce the black economy where cash payments are regularly
used to avoid paying tax.
Medical research fund of $1.3bn announced
This
includes $500m allocated to genomics, the emerging science of preparing medical
treatment based on your genetic blueprint.
Australia enters the space race
$41m
has been allocated to helping Australian businesses to capture more of the
lucrative global space industry.
$500m for the Great Barrier Reef
$500m
is allocated to over 5 years from 2017-18 to address the Crown of Thorns
starfish and to improve water quality entering the Great Barrier Reef.
Yes
it"s true. Previously small craft brewers paid a higher rate of excise on their
products. From July 1 2019 brewers will no longer pay higher excise on smaller
kegs than the large brewers. Potentially this will boost the craft beer sector
enabling them to supply more outlets at lower prices.
Gary Emmett
Senior Economist
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