KEY ANNOUNCEMENTS IN THE 2017-2018 FEDERAL BUDGET
- Economic growth forecast to increase to 3 per cent in 2018-19
- Instant asset write-off to be extended for eligible small businesses to 30 June 2018
- Key road safety programs extended to 2020-21.
|(% change)||(% change)||(% change)||(% change)|
|Total business investment||-10.3||-6||0||3|
|Exports of goods and services||6.7||5½||5||4|
|Imports of goods and services||-0.3||3||3||3|
|Real gross domestic product||2.6||1¾||2¾||3|
|Unemployment rate (per cent)||5.7||5¾||5¾||5½|
|Consumer price index||1.0||2||2||2¼|
The Budget forecasts the Australian economy will grow by 2¾ per cent in 2017-18, before increasing to 3 per cent in 2018-19 as the fall in mining investment finally tapers off and household consumption increases.
Mining investment is expected to fall 12 per cent in 2017-18 but only 3 per cent in 2018-19, with the adjustment away from the heights of the mining boom now almost over.
Non-mining investment is expected to increase 4½ per cent in 2017-18 and the same again in 2018-19. Treasury has conceded that the low level of investment growth is ‘something of a puzzle’ given that business borrowing costs are low, business confidence is solid and existing capital assets are being used at above average levels.
This low level of investment growth highlights the importance of the infrastructure spending in the Budget.
Household spending is expected to increase 2¾ per cent in 2017-18 and 3 per cent in 2018-19, underpinned by a decline in the amount of money that households are saving.
Housing investment is forecast to tail off in 2017-18 (1½ per cent growth) before declining in 2018-19 (-4 per cent growth), as work in progress is finished. Treasury reports significant falls in approvals for medium-to-high density dwellings.
Total exports are forecast to increase 5 per cent in 2017-18 and 4 per cent in 2018-19, driven by strong resource exports and favourable farm conditions. The export increase is also driven by robust growth in service exports, primarily inbound tourism and education.
Imports are forecast to grow 3 per cent in 2017-18 and 3 per cent in 2018-19.
The unemployment rate, which was 5.9 per cent in seasonally adjusted terms in March 2017, is expected to come in at 5¾ per cent in 2017-18 and 5½ per cent in 2018-19, consistent with the rebound in economic growth.
Key budget announcements for trucking businesses
Extension of the instant asset write-off
The Government will extend the immediate tax deductibility of asset purchases costing less than $20,000 for eligible businesses until 30 June 2018.
In line with its election commitment, the Government will extend the following infrastructure programs to 2020-21:
- Roads to Recovery ($400 million per year)
- Black Spot ($60 million per year)
- Heavy Vehicle Safety and Productivity ($40 million per year)
- Bridges Renewal ($60 million per year)
The Government will also establish a new $472m Regional Growth Fund which includes $200m for an additional round of the Building Better Regions Fund.
Melbourne to Brisbane inland rail has received $8.4b, with construction to commence in 2017-18.
Click on the link below for a detailed breakdown showing the key projects that the Government will fund in each state.
2017-18 budget infrastructure projects
The Australian Trucking Association has prepared this fact sheet with due care, but our understanding of the Budget measures may change as more information becomes available. In addition, many Budget measures need to be passed by Parliament. The fact sheet is intended for general information only and may not apply to your business circumstances. You should get appropriate professional advice before acting on the information in this sheet.
ALRTA ACTIVITIES THIS WEEK
This week the ALRTA Executive Director is joining Mark Collins (LRTAQ) and Justin Fleming (ATA TruckSafe Manager) for two days of meetings with livestock processors in South East Queensland.
The meetings are part of our comprehensive review of the TruckCare system. We will be calling in on Kilcoy Pastoral Company, Highchester Meats, JBS, Swickers, Teys and Australian Country Choice.
The meetings will also be an excellent opportunity to raise other important issues such as effluent management and unloading infrastructure.
Ministerial Council Briefing
President Keenan and the ALRTA Executive Director will participate in a departmental briefing on issues to be discussed at the Transport and Infrastructure Ministerial Council in Brisbane next week.
ALRTA and other industry stakeholders are meeting this week to consider draft Australian Design Rules that propose to mandate electronic stability control on new prime movers and trailers. This was a hot topic of discussion at the joint ALRTA/LRTAQ National Conference and will be considered at the ALRTA Council meeting on 24 May 2017.
NHVR COR FORUMS
The NHVR is delivering a number of information sessions across the country to discuss amendments to Chain of Responsibility (CoR) laws that are coming in mid 2018.
The latest sessions added are:
NEW SOUTH WALES
10 May – Blacktown – Blacktown RSL
11 May – Newcastle – West Bowling Club, New Lambton
16 May – Townsville – Mercure Hotel
25 – 28 May – Brisbane Truck Show, Convention Centre (FREE FOR TRUCK SHOW ATTENDEES – just turn up on the day, or if you wish to make a booking go to: www.nhvr.gov.au/cor
(Please note all sessions will start strictly on time.)
Thursday 25 May – 1.30 – 3.30pm
Friday 26 May – 12am – 2.00pm, Afternoon session: 2.30 – 4.30pm
Saturday 27 May – 11am – 1.00pm, Afternoon session: 3.00 – 5.00pm
For dates and locations of all NHVR CoR information sessions visit www.nhvr.gov.au/cor