Federal Budget 2017: This year’s winners and losers

Australian Federal Treasurer Scott Morrison speaks to journalists as he visits the 2017 Budget Lockup at Parliament House in Canberra, Tuesday, May 9, 2017. (AAP Image/Lukas Coch)

Find out if you’re a winner or a loser from this year’s Federal Budget.

Australia’s Government is optimistic about the prospects for the global and Australian economy, said Federal Treasurer Scott Morrison in delivering his budget speech last night.

Morrison said the nation was moving towards the end of a difficult period, with signs of global recovery “and there is potential for better days ahead”.The relatively upbeat comments set the tone of a budget with a theme of “fairness, security and opportunity” that combined cuts to welfare with significant infrastructure spending and moves to help first-home buyers.

CPA Australia welcomed the investment in infrastructure, an extension of the instant asset write-off for small business and a new Medicare Guarantee Fund to increase health funding to an ageing population.

Morrison has placed government spending on target to get the budget into a A$7.4 billion surplus in 2021, and says from 2018/19 the government will no longer be borrowing to pay for everyday expenses.

With forecast economic growth of 2.75 per cent in 2017/18 that has meant winners and losers in this year’s budget.


Entrepreneurs/self employed

The government is retaining the popular small business instant asset tax write-off at A$20,000 for another 12 months. It had been due to fall to A$1000 from June 30. CPA Australia and business groups have been pushing for the higher level to be retained, arguing the ability to write off up to $20,000 in the same year equipment was bought is a real boost to business cash flow. 

Listen to the podcast: Winners and losers of the 2017 Budget

The measure applies to businesses with annual turnover of up to A$10 million.

Regional Australia

The Government will establish a A$472 million Regional Growth Fund to support regional communities. This includes A$200 million to support a further round of the successful Building Better Regions program.

It will inject A$8.4 billion in equity to the Australian Rail Track Corporation to fund the Melbourne to Brisbane Inland Rail project with work starting in 2017/18. 

Australian homes are seen from a commercial aircraft over the Sydney suburb of Eastlakes, New South Wales, Australia, Tuesday, May 2, 2017. (AAP Image/Sam Mooy)

The property industry

The housing market gets a boost from the new First Home Super Savers Scheme allowing first home buyers to save for a home through their superannuation fund, contributions and earnings taxed at 15 per cent, rather than their marginal rates. Withdrawals will be taxed at their marginal rate, less 30 percentage points.

Contributions will be limited to A$30,000 per person in total and A$15,000 per year.

The government will also allow people aged 65 or over to make a non-concessional contribution into their super of up to A$300,000 from the proceeds of selling their principal residence. The incentive is designed to free up larger homes.

The government plans to step up release of Commonwealth land for housing. It has barely touched negative gearing but tightened some rules on deductions.

Construction on the Gold Coast Light Rail extension is seen on the Gold Coast. Stage 2 of GCLR should be ready for the Gold Coast 2018 Commonwealth Games, giving public transport users a one-transfer rail journey between Brisbane and the Gold Coast. (AAP Image/Dave Hunt)

Infrastructure and engineering

This is a big spending, big project budget, with A$75 billion earmarked for infrastructure spending in the next 10 years. This includes a new Western Sydney Airport, with work starting in the second half of next year. 

In addition, Morrison announced a A$10 billion National Rail Program to upgrade rail around the country.

A flu immunisation needle is seen as part of a work-provided Flu vaccination initiative in Rhodes, New South Wales. (AAP Image/Sam Mooy)


A higher Medicare levy will channel funds into the health sector, with Morrison announcing the National Disability Insurance Scheme (NDIS) will be fully funded. 

There will also be extra funding for mental health and veterans’ mental health.



All taxpayers will pay a higher Medicare Levy, rising from 2 per cent to 2.5 per cent from 1 July 2019. The increase is expected to raise A$8 billion to fund health care.


Bank customers will be able to take complaints to a new Australian Financial Complaints Authority. Bankers might feel they have dodged a bullet because the Authority is likely to be preferable to a Royal Commission into the banking industry. 

Morrison also announced tighter controls over bank executives, higher fines for misconduct and a new permanent Australian Competition and Consumer Authority task force to investigate competition in the banking and financial system.

A new 6 basis-point levy on the liabilities of the five major banks, starting July 1, will raise A$6.2 billion for budget repair.

A for sale sign is displayed in front of a house in Sydney on Wednesday, April 26, 2017. (AAP Image/Paul Miller)

Foreign property buyers

Foreigners will lose the main residence capital gains tax exemption on their Australian homes. If they buy property and fail to occupy or lease it, they will pay an annual A$5000 levy.

Developers will be prevented from selling more than 50 per cent of new developments to foreign investors.

Welfare recipients

Welfare recipients will face tougher obligations, including a new demerit point system for people who miss job interviews.

Employers of foreign workers

Employers will pay an annual foreign worker levy of A$1200 or A$1800 per worker per year on temporary work visas and a A$3000 or A$5000 one-off levy for those on permanent skilled visas.

Multinational companies

The government is toughening the Multinational Anti-Avoidance Law to extend the rules to structures involving foreign partnerships or trusts and clamping down on aggressive structuring using hybrids.

Read next: CPA Australia Federal Budget statement

Like what you're reading? Enter your email to receive the INTHEBLACK e-newsletter.


Knowledge alone isn't enough to improve someone's financial health; it's about what you can do with that knowledge. Here's why financial literacy is so important.

Half of all Australians struggle with financial literacy. Are you one?

Slavery and bribery are likely to be top of the agenda for financial regulators in 2019. Here's a look at the landscape for regulations in the Asia-Pacific.

The regulations you face in 2019: Asia-Pacific snapshot

Those surveyed believe the main challenge for China’s economy is rising global economic uncertainty.

China business cautiously optimistic

The Australian property market recorded the weakest conditions since the global financial crisis, with national home values down by 4.1 per cent over the year to November.

Property downturn affects SME confidence

If the stigma around bankruptcy diminishes, rogue bankrupts could become less concerned about the consequences and creditors could suffer greater losses.

Bankruptcy exclusion period: will dropping it to one year really improve economic growth?

Three experts forecast what the top issues will be for global business in 2019.

Business forecast 2019: the top issues

October 2021
October 2021

Read the October 2021 issue of INTHEBLACK magazine.

Each month we select the must-reads from the current issue of INTHEBLACK. Read more now.