Federal Budget 2016: What it means for South Australia

Budget 2016 Federal Budget 2016: What it means for South Australia May 3, 2016 7:00pm Daniel WillsState Political EditorThe Advertiser Subscriber Exclusive Icon Morrison: 'We can build a brighter, secure future' MAIN WRAP: Job creation centrepiece of Budget REVEALED: Budget winners and losers ANALYSIS: Is this Budget enough for Coalition to retain power? KOCHIE’S VERDICT: There’s good news and bad news ANDREW BOLT: ‘Gunna Budget’ nothing but bunch of IOUs SOUTH Australia’s nation-leading unemployment crisis will be hit in a three-pronged attack of new training for young jobseekers, tax cuts for small business and big spending on defence. Last week’s blockbuster submarines announcement has locked away $90 billion in defence programs for the state, which the Coalition hopes will be a foundation for economic recovery. In addition, the total amount of cash handed to SA by the Federal Government will leap from $8.9 billion to $10 billion in the coming financial year as GST returns surge further ahead. However, the Budget is lacking in detail about a plan to save the Whyalla steelworks as the state and federal governments remain locked in discussions with the administrators. SA Treasurer Tom Koutsantonis on Monday announced a $10 million loans scheme to help businesses in the Arrium supply chain, and is prepared to help fund a steelworks upgrade. The state also missed out on a major new infrastructure announcement, as other states get cash for rail and airport building. However, SA is considered to have fought well above its weight in recent years by securing money for three separate South Rd upgrades in the past two budgets. Other Stories Ford faces lawsuit over ‘dodgy gearbox’ Ford faces lawsuit over ‘dodgy gearbox’ Woman charged with murdering man Woman charged with murdering man More doors open for SA first home buyers More doors open for SA first home buyers Weird stuff we learnt from the Budget Weird stuff we learnt from the Budget The Budget: your five-minute guide The Budget: your five-minute guide It does include detail on $7.5 million in compensation for an SA community earmarked for a low-level nuclear waste dump, and a plan to send other waste to France for reprocessing. The Future Submarines project is a cornerstone of the Federal Government’s defence spending. Treasurer Scott Morrison’s first Budget also starkly lays out another major difference between SA and the rest of the nation. The Australia-wide jobs growth rate is expected to be 2.1 per cent in the coming year, a staggering three times higher than what is currently projected for SA. Mr Morrison said the transition to a more diversified economy, forced by the tailing off of sectors like mining and manufacturing, required workers to build new skills. The Budget estimates 2800 jobs from subs and 2000 from the future frigates, which are being exclusively built in Adelaide. Four hundred offshore patrol vessel jobs will be split with Perth. “Through our 20-year defence industry plan, we will secure an advanced local defence manufacturing industry, driving new hi-tech jobs in Australia,” Mr Morrison said. “The nine future frigates, 12 offshore patrol vessels and 12 new regionally superior submarines will do the job of boosting our defence capability, but they will also drive jobs and growth in the new economy we are building ... right across the supply chain of our national economy. Treasurer Scott Morrison’s Budget has a strong emphasis on jobs. Picture: Kym Smith A state dominated by small and medium businesses will also get a lift from tax reform, as the Federal Government unveils a 10-year plan to get their tax rates down and investment up. “We ... share the ambition for small businesses to become bigger businesses,” he said. “We will not be able to rely on our natural advantages in resources to secure the jobs of the future like we have in the past. If we wish to continue to see our living standards rise with more jobs and higher wages, we need to ensure that our tax system encourages investment.” Business SA has long warned that local firms are deterred from hiring, especially young people, due to additional costs including state payroll tax and on-the-job training. Mr Morrison’s work for the dole overhaul aims to put more than 100,000 young people to work. It will include internships with businesses, and top-up payments of $200 per week for workers. The 2016 Federal Budget focuses on employment, which will be important for the South Australian economy. Picture: Matt Turner The Federal Government has also sought to repair a rift with the states by returning a fraction of the $80 billion in health and education funding which was axed from the Budget in 2014. The “work and earn” Federal Budget creates a political predicament for Mr Koutsantonis ahead of his own unveiling of documents next month. With the Coalition in full election mode, it has moved to smooth the waters in SA by delivering a huge gesture of goodwill on jobs. The direct investment of subs and frigates has now been augmented with training for workers and tax cuts for businesses that is aimed at helping individuals carve their own path. They also rob Mr Koutsantonis of a political bogeyman on whom much of the state’s economic woes have been blamed in the past three years. The closure of Holden and the fate of Whyalla remain likely political flashpoints. However, the Coalition has offered appeasement in the form of frigates and subs, moving past the blame game but also putting the jobs ball in SA Labor’s court. 2016 BUDGET CALCULATOR FIND OUT IF YOU COME OUT IN FRONT START WHAT THE BUDGET MEANS FOR DIFFERENT SOUTH AUSTRALIANS Jason Byrne, 20, in front of his Woodcroft home. Picture: Tom Huntley UNDER 25 Name: Jason Byrne Age: 20 Suburb: Woodcroft Occupation: Student Marital status: Long-term girlfriend Voting last election: I wasn’t old enough to vote in the last Federal Election but I voted Labor at the 2014 state election Who are you planning to vote for next time: I will be voting for Labor at the Federal Election Wishlist — did they get what they want? 1. No 20 per cent cut to higher education funding and no deregulated fees. YES 2. Australia needs to take more action on climate change and the Budget has to reflect our goals as a nation for doing our part. NO 3. The government has to stop the cuts to domestic violence services, which we have seen in the last six months. YES Sarah Hein in her new unit. Picture: Tricia Watkinson. FIRST HOMEBUYER Name: Sarah Hein Age: 31 Suburb: Kurralta Park Occupation: Teacher Marital status: Single Voting last election: Liberal Who planning to vote for next time: Undecided Wishlist — did they get what they want? 1. More funding for public and independent schools. YES 2. It would be great to see a first homeowners grant that applies to purchasing an already established home. NO Tony and Linda Simmons at their St Peters home. Picture: Calum Robertson EMPTY NESTERS Name: Tony Simmons Age: 57 Occupation: Financial adviser Name: Linda Simmons Age: 55 Occupation: Early childhood worker Suburb: St Peters Marital status: Married Voting last election: Liberal Who planning to vote for next time: Liberal Wishlist - did they get what they want? 1. A progressive and equitable tax system that stimulates job growth generally and employment opportunities for our children specifically. YES 2. On a state basis, provide incentives for businesses to relocate or start up in Adelaide through lower state taxes including payroll tax and further stamp duty exemptions. YES 3. On a Federal basis expand consumption taxes while making an allowance for affected low income earners. YES 4. Assist funding of workers own retirements through flexible superannuation contribution rules that although may put a cap on contributions allow flexibility of contributions regardless of age. NO The Brown family — Lucy, 18, Jane, Stewart and Hannah, 15 — at their Kingswood home. Picture: Bianca De Marchi MIDDLE CLASS FAMILY Name: Stewart Brown Age: 47 Suburb: Kingswood Occupation: Manager Marital status: Married Voting last election: Greens Who planning to vote for next time: Leaning to Liberal Wishlist — did they get what they want? 1. Policies that make the best possible medical facilities available to everyone. NO 2. More research positions to ensure our young people don’t have to leave the country for those jobs. YES 3. More money for early education and especially for literacy to ensure everyone gets a good start in life. NO 4. A fairer tax system where the big companies pay their fair share. YES Michelle Liesker works at Ellex Medical Systems. Picture: Tricia Watkinson. MANUFACTURING WORKER Name: Michelle Liesker, Age: 44. Town/Suburb: Salisbury North. Occupation: Learning and Development Manager at Ellex Medical Systems. Marital status: Single. Voting last election: Greens (with Liberal preferences). Who you plan to vote for next time: Undecided. I will vote for the party I think will improve living standards and do the best job for the future of Australia. Wishlist — did they get what they want? 1. I would like job prospects to improve. YES 2. I think there is a place for free trade but not to the detriment of Australian jobs and products. NO 3. Companies should be responsible for their emissions and product cycle from cradle to grave. NO Originally published as What the Budget means for South Australia Comments5 Sign in14 Post comment as... Newest | Oldest | Top Comments Phillip65 Phillip65 5 hours ago If honesty was possible in this state, voters would see that they have received more than their fair share both from the Labor and Liberal FEDERAL governments over the past decade. Any economical woes can be lobbed straight to the STATE Labor government and the unions. 2LikeReply Eric Eric 21 hours ago When you count how many jobs were lost just in this state, a 2.1% increase is just a spit in the ocean! Our economy is good but most of the money coming in is just very lazy money. That is money on property investments that do very little for jobs. We need long term infrastructure projects that will produce not only jobs but useful end products, how many of us will use the submarines? Roads, bridges and hospitals we will all use. LikeReply Steven Steven 8 hours ago @Eric It's simply good news though so why bag it? 1LikeReply Eric Eric 4 hours ago @Steven @Eric No, it's just business as usual. It doesn't matter if it's Liberal or Labor, nothing huge is ever announced. The Subs will have little effect and the Youth training scheme will just teach youth to collect shopping trolleys and drive taxis. We already have huge numbers of trained university graduates who are unemployed so all that is doing is adding to that number, instead of the unskilled unemployed. We need huge numbers of jobs, not a couple thousand here and there. All of our politicians are very weak willed to take and make the hard decisions. 1LikeReply Christine Christine 1 hour ago @Eric @Steven Trouble is Gov. and free enterprise have become muddled. It used to be Gov. provided all the services, and free enterprise all the goodies, smart oval etc. Now health,education and public services poor, and big business gone as it was usurped by Gov. LikeReply More Stories Leicester City fan makes worst cash-out decision in history Leicester City fan makes worst cash-out decision in history Sport Man who pretended to be a Finks bikie in bungled blackmail attempt jailed for more than two years Man who pretended to be a Finks bikie in bungled blackmail attempt jailed for more… News Promoted Stories Got Private Health Insurance? You Should Read This Now! Got Private Health Insurance? You Should Read This Now! 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