The Federal Budget, as delivered by the Treasurer, Scott Morrison, was the subject of discussion at the May monthly dinner of the Australian Arab Business Council (AABC).
Past AABC President and Economics Commentator, Mr Radwan Hamdan, presented the usual post budget analysis for members of the AABC. He analysed the impact of the Budget on businesses, small and large, and identified winners and losers.
Mr Hamdan believed businesses will benefit from the lowering of the corporate tax, the capital investment write off and the wide infrastructure spending program throughout Australia. The Budget is politically motivated but is balanced and will help to preserve the critical AAA Credit Rating, he added.
The biggest winners are Medicare with the lifting of the freeze of the government rebate, the NDIS Scheme which is now fully funded, schools with increased funding and to a limited extent First Home Buyers with the salary sacrifice into their superfunds. Security and Defence budgets have also been boosted.
The biggest losers from the Budget, however, are the five big banks who stand to contribute $6.2 to Commonwealth revenues, Universities who were hit with an efficiency dividend and university students who will pays HECS fees earlier. Tax payers will now have to fork out an extra 0.5% top up of their Medicare levy to support the NDIS.
The Government highlighted the excessive welfare bill and will put the squeeze on welfare cheats with strict new measures. It will also target Tax evaders with extra funding to the Tax Office to fight serious financial and organised crime, and to “chase and tax the crooks”, said Mr. Hamdan.
Mr. Hamdan concluded that the Budget provides no solution to the Chronic Housing affordability problem in Capital Cities and no clear plan to boost productivity and job growth in the short term. He believes the Budget will pass the popularity test and will be well received in general by the Australian public.
The next monthly dinner of the Australian Arab Business Council will be held on Wednesday 5th July 2017.
Photos of the last monthly diner are available through this Link: