The 2017-18 Budget delivered winners and losers for the Hunter

BY JESSICA ROUSE and IAN CROUCH

Fairness, security and opportunity is how Treasurer Scott Morrison described his 2017-18 Budget last night, which he believes makes the right choices to pull Australians out of a "difficult period".

Throughout the Hunter today, we're all trying to figure out just who the winners and losers are.

Among the winners, the Medicare co-payment will be scrapped from July 1 next year meaning it will cost less to visit the GP, seniors will get one-off payments towards the cost of power bills, and Hunter schools will have a share in the $18.6 billion announced for Gonski funding with a per student funding increase of around 2.5 per cent.

"It's a great news budget for Australia because it's fair, it rewards opportunity and it delivers  economic security going forward - there's a massive infrastructure bill, there's $18.6 billion dollars extra for education over the next 10 years," said Lyne MP David Gillespie.

First home buyers have come out with some positives - Scott Morrison believes the plan for first home buyers to be able to salary sacrifice into their superannuation in order to save for a house deposit is a better, and more targeted measure to make housing more affordable.

Treasurer Scott Morrison Image smh.com.au

However, the problem isn't always in affording the house, but actually finding a property to invest in.

David Gillespie says the problem is housing supply not keeping up with demand and the federal government can only do so much.

"Supply and demand principals of housing has affected affordability. We do have in the big cities quite large numbers of people moving but the housing supply hasn't kept up with the population growth and that's something that state government's and local governments need to buy into just as much as what we're trying to help at the Federal level," he said.

Small business have the instant write-off for $20,000 assets extended for a second year, and businesses with a turnover of up to $50 million are set to receive a company tax cut.

Member for the Hunter Joel Fitzgibbon can't see many benefits for the region at all particularly in terms of infrastructure, with no money on the table for the Glendale Interchange or Muswellbrook and Singleton bypasses.

"A real slap in the face for the Hunter last night, and of course the Glendale interchange project is one supported by all the councils throughout the region so valuable they see it for the economy and to the community. This of course was a budget simply to save Malcolm Turnbull in the party room," said Joel Fitzgibbon.

The National Disability Insurance Scheme will be funded through increasing the Medicare Levy by half a per cent in two years time to close the $5 billion gap.

The Samaritans are delighted with the scheme which Chief Executive Peter Gardiner says "is really critical, so really pleased to see that confirmation from 2019 because people with a disability really do need to have a valued role in our community and that funding will help secure that".

Also, there's $12.5 million over 4 years towards a national health study into the impact of PFAS chemicals which will benefit those affected by the Williamtown RAAF Base contamination. A further $14 million will go towards health-related initiatives, but there's no money yet to pay compensation to residents and business owners.

Shortland MP Pat Conroy

University students have come out losers, with the cost of a four year degree rising by 7.5 per cent adding about $3,000 to the cost of a degree. Students have to pay back their government loans sooner when their income reaches $42,000 instead of the current $55,000.

"There's $3.5 billion of uni cuts and increasing uni fees by 7.5 per cent will have a disproportionate impact on our uni students (The University of Newcastle) because our students are typically mature age students or studying part time - people who are more deterred by high debt than students typically coming straight from school," said Shortland MP Pat Conroy.

Confidence in Hunter after GDP rise

BY GARY-JON LYSAGHT

A University of Newcastle economist is confident the rise in gross domestic product (GDP) during the December quarter is good for the Hunter.

Dr David Savage

Behavioural economist Dr David Savage said the GDP increase will also help reduce youth unemployment across the region, which currently sits at more than 13 percent.

"Youth unemployment is up everywhere," he said.

"When the whole economy grows, you start to find the lower end jobs start to improve as well.  So, you'll find the local cafes start to hire more, the corner stores are hiring more ...  because more products are being sold.

"When we have GDP growth, more people get employed, more people want to buy things - because they have more money - the general economy starts to grow.

"We start to see wage increases and start to see the standard of living increase with it."

The nation's GDP rose by 1.1 percent during the December quarter, quashing fears of a recession after a drop by 0.5 percent during the September quarter - the first drop since the Global Financial Crisis.

Treasurer Scott Morrison made the announcement yesterday, adding it has become the envy of the world.

"These growth figures say we are are at the top of the pack," Mr Morrison said.

But, Mr Morrison added that not every region in Australia was feeling the benefits of higher GDP, and Dr Savage believed the Hunter has been one, citing the downturn in the mining industry.

"When the mining economy doesn't run so well, you'll find that [mining dominate places like] Western Australia suffers, especially the Hunter - that it is so very mining sector based - and parts of Queensland have the same problem," he said.

"If the mining sector isn't firing, unemployment rates are very high, they take a very long time to catch up and we have this conversation of a two-speed economy.

"But it works in both directions, so when we do have a mining boom, you'll that these areas are doing very, very well."

However, he also said low employment in the mining sector is not related to youth unemployment, because youth employment often comes "from the general sector".

What has been boasted as another boom for the region's economy is the upcoming V8 Supercars race in November, and Dr Savage said it will help funnel huge revenue into the local economy.

He said a good case study was the Gold Coast 600, where there was - and still is - community disquiet around the race, but strong business enthusiasm.

"For businesses, it's really good and that sort of thing can spark a lot of tourism and money flow for even that short period of time," he said.

"It's also very good promotion [for Newcastle] Australia-wide.  Now that the Supercars are going to different places like New Zealand and China, we also get telecasted to those regions.

"So it's good for tourism across the board."