Australian Budget 15-16 – Brace yourself.

Treasurer Joe Hockey has introduced a few new measures that seem rather extraordinary. But here is how it will pan out and the greatest disappointments within.

‘Netflix’ Tax:

It is like all taxes a tax to consumer. GST is to be charged by all overseas companies who sell digital products and services. This is to raise $350m in taxes in the first 2 years from July 2017. This is a direct cost to customers and will delay technology and innovation considering Australia as a selling ground and will set Australia far behind any digital developments when companies already consider Australia  market to small to want to enter.

Catch Tax avoiding MNC’s:

An extension on our prior point. This going to drive companies further away from wanting to business in Australia. The consumer will be the one to suffer. Tax shifting is a legal procedure for companies to repatriate their income. The structure help companies grow, higher more people, spend on marketing and R&D and contribute to the environment they exist. It also delivers on shareholder expectations and market sentiment. Joe Hockey is far too one dimensional on his policy.

Working Holidays and Tourism:

The taxfree threshold of $18K will be removed for people arriving in Australia on Working Holiday Visa’s and 32.5% tax rate is to be applied. The government fails to see that many of the people arriving here on working holidays end up staying and attain permanent residency and employment. Some create jobs by creating startups. Let alone the tourism dollar that is spend in Australia on rent, f&b, travel etc. The treasurer fails to see that this taxation model is likely to lead many people to alternative destinations from developed nations like the UK and Germany.

Educations and HELP Debt:

This is a sure shot to ensure that Australia will loose some of its most prized, educated and talented citizens to neighbours like Singapore. The policing and introduction of these law would be far to costly and is really not feasible. Far more advanced and wealthy nations have not been able to execute this strategy.


This group in Australia can consider itself abandoned by the Australian Government. A $330m Youth Employment Strategy Plan seems like an opportunity but judging by past pilots like the ‘Earn or Learn’ policy, which was plagued by illegitimate RTO’s scamming the Government and the unemployed for funding. Included is also a  6,000-place national work experience program, which offers wage subsidies for employers to hire young people after four weeks of unpaid work. This has been tested and trialled and failed under the Howard Government.

15–21-year-old early school leavers will have to work 25 hours a week to qualify for income support until they turn 22 or earn a year 12 certificate III qualification.

Newly unemployed young people under 25 will have to wait four weeks before qualifying for payments which puts our most vulnerable people in society at risk of being exploited or end up in series strives with the law when they must do what it takes to survive.

Under the ‘no show, no pay’ principle, anyone who misses appointments or work for the dole will have their payments suspended.

The eligibility age for Newstart Payments will increase from 22 to 25.

This is to completely fail our youth.

Whilst the remainder in the budget seems feasible and acceptable we must protest the above. The budget is far too one dimensional and fails the ‘fair go’ test.



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