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Winners And Losers From The Budget

Who got what? and where? And why?

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Treasurer Joe Hockey has attempted to transition from grizzly bear to care bear with this budget, with generous handouts to families, small businesses and farmers.

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This is Hockey's "Have A Go" budget, where the Treasurer attempts to coax Australians into spending more and getting into work.

It's a far cry from last year's 'unfair' effort which saw Australians turn on the once-popular Treasurer. Hockey has largely spared Australians from the harsh medicine he says we need to get the budget under control, but that doesn't mean some people haven't copped it. These are the winners and losers from the budget.

WINNER - Small business

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The government's $5.5 billion small business package is supposed to be the good news story of this budget. The package includes:

- A 1.5% cut in the company tax rate for small businesses.

- From tonight, all small businesses will be able to automatically claim a 100% tax rebate on any business-related items they purchase up to $20,000.

- All unincorporated businesses will receive a 5% tax cut up to $1000.

- Scrapping the fringe benefits tax on phones and other portable devices used for work.

LOSER - Indonesia

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Indonesia will lose 40% of its non-humanitarian foreign aid budget as relations between Australia and our northern neighbour reach new lows. Julie Bishop warned there would be consequences for the execution of the Bali Nine and it looks like this is it. $1 billion has been cut from the total foreign aid budget this year.

WINNER - The Top End

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A $5 billion Northern Australia Infrastructure Facility will invest in ports, railways, pipelines and electricity generation for the northern states.

LOSER - Anyone who likes fun

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The 'Netflix tax' will apply GST to digital services purchased overseas. So all your music, movies, streaming services, ebooks and software downloads will soon be more expensive. (Except for iTunes, which already attracts the GST)

WINNER - Farmers

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- The government has pledged $300 million in drought relief

- Farmers will also be able to claim tax deductions for all new fencing and for investment in water facilities and fodder storage.

LOSER - Foreigners and Expats

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Foreigners in Australia on working holidays will no longer be able to claim the tax-free threshold, meaning they'll pay tax on the first dollar they earn. Meanwhile Australians with a HELP debt who live overseas will now be forced to repay those debts.

WINNER - Our spies

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$1.2 billion will be spent on national security. This will include more equipment and technology for our spies, more money to implement data retention laws and money to combat propaganda on social media.

LOSER - Charity workers

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Currently, employees of charities can 'salary sacrifice' up to $30,000 and employees of public and not-for-profit hospitals and public ambulance services up to $17,000. This is meant to off-set the often low wages paid in these industries. The new cap will be $5000, saving the budget $295 million over four years.

WINNER - Families

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Families, families, families

The government has announced a $4.4 billion families package. It includes:

- Childcare rebates of up to 85% for families earning less than $65,000. Families earning up to $185,000 will receive some form of rebate for the cost of childcare.

- The payments are linked to how much a parent works. So the more you work, the more your rebate is.

- A simplified Family Tax Benefit system

LOSER - Joe Hockey?

Stefan Postles / Getty Images

It's too early to tell how this budget will go down but Joe Hockey will certainly be the most nervous man in Australia tonight. His political future, along with that of prime minister Tony Abbott is riding on this budget being well-received. But there are already signs that the Senate won't play ball on crucial family tax reforms. If this budget battle stretches on as long as the last one, Hockey may soon be out of a job.

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