There is no doubt that this year budget it was designed to be completely different from the previous one, with young families, small businesses and farmers as the big winners.

Far from being controversial, the announcement has been generally well received, with many commentators referring to it as the “likely” budget. Here is a summary.

young families

The government has set aside $3.5 billion to make childcare more affordable through the introduction of a Means-Based Childcare Subsidy, which replaces the childcare benefit/reimbursement. The government wants to encourage more people to enter the workforce, so the number of subsidized childcare hours will be “closely aligned” with the amount of time a parent spends working, training, studying or volunteering.

Pensions and retirees

While there are no changes to retirement, there are a variety of measures for retirees: this includes an increase in the asset test threshold for the age pension, while increasing the test phase-out rate. Terminally ill people will also have earlier access to retirement.

National security

$450 million has been set aside to boost national security by giving more resources to various intelligence agencies. The money is allocated to boost the technological capabilities of Australia’s intelligence-gathering agencies, to train the new border protection service (the Australian Border Force), and to monitor social media (to help counter extremist dogma online by groups like the Islamic State).

Money has also been set aside to help the telecommunications industry comply with new metadata laws (which require telecommunications companies to store their customers’ metadata for two years).

Small business

The budget contains new initiatives in the “Jobs and Small Businesses” package, which applies to businesses with a total turnover of less than $2 million. Provides immediate deductibility for asset purchases up to $20,000 and a tax rate of 28.5%. Unincorporated entities can enjoy a 5% tax discount (with a cap of $1,000).

RuralAustralia

Farmers battling drought will get a lifeline, with $250 million set aside to continue the Drought Concessional Loan Program for another year.

Other benefits for farmers include the ability to claim fences and new water reservoirs as tax deductions, and money will be made available to help farmers in drought-affected areas lessen the impact of animal pests.

Road infrastructure for livestock supply chains in the north, a boost to infrastructure in drought-affected areas through the establishment of a new subsidy system and a part to extend social and community support services for 20 areas additions from the local government. There will also be an additional $1.8 million for more counselors in rural areas.

Other budget highlights

  • 30 known multinational tax evaders have been selected to pay more tax in Australia.

  • Backpackers will now pay 32.5% tax from the time they arrive and earn in Australia.

  • The so-called ‘Netflix tax’ will see the government benefit from foreign companies supplying digital products and services to Australians; these will be subject to GST from July 1, 2017. It is expected to raise $350 million for the states in the first two years.

  • The current shortfall of $41.1 billion is projected to narrow to $35.1 billion for 2015-16, falling to $6.9 billion in 2018-19.

Certainly all budgets will have some feathers rustled, but overall, this one is cautious. Perhaps this year we can expect an easier transition and less media attention in the next 12 months.