The money have been divided, rescinded and distributed to new areas – that’s right the Federal Budget is out and even travel is being affected by it.
As per usual, there’s a bit of good and a touch of bad for all industries as the government redistributed money into areas it believes needs improvements.
For example, did you know that this year the government will spend $195 million in increase cyber security? Might want to watch what you say on email.
Or that around $3 billion will be spend on new infrastructure projects, much of it concentrated in Victoria and on roads.
In travel there’s a lot to look forward to in the next year and a lot that’ll make you want to put your head in your hands and cry.
The Good
Good news for the smaller agency groups! The government is cutting tax rates for around 870,000 small to medium sized companies with an annual turnover less than $10 million.
The Bad – no tax cut for those earning less than $80,000
If you want to be a millionaire maybe don’t work in travel – that’s a saying right? Well we know it’s not the most lucrative of industries, with agents often starting their careers earning around $40,000 per year. Those making less than $80,000 a year will not receive a tax cut.
The Good – more consulates for your clients
The government is spending around $42.3 million to open two new consulates in Papua New Guinea and China. There’ll also be a temporary embassy set up in Ukraine.
The Bad – passport fees rise, again
Passport processing fees are set to go up again with adults forking over $20 and children $10. The change will come into affect on 1 January next year. Priority fees will also go up by $54. The last passport fee increase was only last year.
The Good – rail link between Melbourne and Brisbane
Some $594 million will be put towards researching a proposed rail connection between Melbourne and Brisbane.
The Bad – increased backpackers tax
Our young visitors will be forced to pay an extra 32.5 cents on every dollar they earn while working in Australia. That’s rough.
