2018 Australian Government Budget - Industry summary
9th May 18
This summary of the the 2018 Australian Government Budget reviews the cuts to personal and business taxation plus studies the key spending on dental and oral healthcare. It predicts a return to surplus in FY2019-20.
Key Issues For The Dental Industry —
Each year the Australian Dental Industry Association (ADIA) provides an overview of the Australian Government budget, a document that has a profound influence on the commercial, technical and regulatory environment in which dental products are sold.
The following is a summary of the key outcomes in the budget that are of interest to the businesses that manufacture and supply dental products, plus their employees.
Fiscal strategy and outlook —
The 2018-19 Budget shows a further improvement in the fiscal position across the forward estimates and the medium term. The expected underlying cash balances for 2017-18 and 2018-19 are the strongest since the Global Financial Crisis (GFC). [Read More]
The economic environment —
The transition towards more broad‑based sources of growth is occurring as expected, with the economy forecast to grow by a solid 2¾ per cent in 2017‑18. Growth is then forecast to pick up to 3 per cent in 2018‑19 and 2019‑20 — a pace sufficient to lower the unemployment rate over the next few years. [Read More]
$20,000 Instant asset write-off —
The Government will extend the 2015-16 Budget measure Growing Jobs and Small Business — expanding accelerated depreciation for small businesses for the second time for another 12 months to 30 June 2019 for businesses with aggregated annual turnover less than $10 million. This measure is estimated to have a cost to revenue of $350 million over the forward estimates period. [Read More]
Income taxation —
The 2018 Australian Government budget will provide permanent tax relief to low and middle income earners by increasing the threshold of the 32.5 per cent personal income tax bracket and, over time, simplifying and flattening the system by removing the 37 per cent tax personal income tax bracket. [Read More]
Company taxation —
The the reflects the tax cuts tha the Government has legislated for around 3.3 million small and medium Australian businesses employing 6.8 million workers with annual turnover up to $50 million, as part of the Ten Year Enterprise Tax Plan. [Read More]
Research and development tax concession —
The Australian Government will amend the research and development (R&D) tax incentive to better target the program and improve its integrity and fiscal affordability in response to the recommendations of the 2016 Review of the Research & Development Tax Incentive. [Read More]
Dental care spending —
The 2018 Australian Government Budget provides funding for existing commitments to provide dental and oral healthcare services for eligible adults, children and military veterans. [Read More]
Medical industry growth plan —
The Australian Government will invest $1.3 billion in a Health and Medical Industry Growth Plan to deliver better treatment outcomes, create jobs, and drive growth in new firms and industries through research. [Read More]
Exporters assistance —
The Government will maintain 137.9 million funding for the Export Market Development Grant scheme for 2018-19 and has projected that it will maintain this level of funding across forward estimates until 2021-22. [Read More]
The strengthening economy raises $31.5 billion in new taxes and levies over the next four years, while policy decisions reduce receipts by $13.9 billion over the same period. The stronger economy leads to a reduction in payments of $3.6 billion over the four years to 2021-22, while new policy decisions reduce sending by $404 million. Net debt is forecast to peak in the 2018-19.
Member Engagement —
ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to the Association's work to ensure that the initiatives within the 2018 Australian Government budget support the dental industry, the team in the ADIA national office receive advice and guidance from members serving on the ADIA-TCPC Trade & Commercial Policy Committee.
Further Information —
To keep up to date with how ADIA is working to ensure that the Australian Government budget supports the dental industry, subscribe to the Twitter feed @AusDental or follow us on Facebook at www.facebook.com/dental.industry. Alternatively, you can contact the Association via email at email@example.com or by telephone on 1300 943 094.
Currency Of Information & Disclaimer —
This update was issued on 9 May 2018 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy (including passage of the supporting legislation through the parliament) and also compliance obligations. It is recommended that expert advice be sought before taking action based upon the information presented here.
This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, images and where stated.
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