As predicted, Federal Treasurer Wayne Swan’s second budget contained a number of attacks on the wealthy.
But the news wasn’t all bad – a number of our richest entrepreneurs stand to profit from the measures contained in the budget, such as increased investment in infrastructure, the extension of the enlarged first home owner grant, and the increased tax break for SMEs.
Here is a list of some of the winners:
A variety of entrepreneurs will benefit from the Government’s decision to increase the first home owner grant, including billionaire Lang Walker.
He has a wide variety of projects on the go, including a development called Reflections in the NSW coastal town of Barings Beach, which his Walker Corporation bought when the original developer collapsed.
In the last few months, Walker Corporation dropped the price of a block from $170,000 to $150,000, and launched a $400,000 house-and-land package – he’ll be hoping to attract a few more buyers loaded up with Government cash.
The chief executive of engineering firm WorleyParsons should stand to benefit over the next five years from the Government’s big spending on infrastructure projects.
It’s good timing too. Like many firms in the construction and engineering space, Worley has ridden the mining boom for the past five years and will be keen to find other sources of work.
The billionaire trucking magnate will no doubt welcome increased money on road infrastructure. In the cut-throat world of trucking, where margins are paper thin, even small efficiency gains (such as faster travel times and better fuel efficiency) from better roads make a difference.
The Perth-based billionaire has a range of investments, but he’s also one of that state’s biggest Toyota dealers. While things have been ugly for car dealers for the past 12 months, the increased tax break for SMEs should spark demand for commercial vehicles and company cars.
There is a clear link between cash handouts and increased gambling spending. Melbourne’s gaming machine king Bruce Mathieson should benefit from the $30-a-week rise in pension payments.
Building materials company Barro Group (which is also a major shareholder in listed cement maker Adelaide Brighton) should benefit from infrastructure spending and previously announced initiatives that will see money pumped into social housing and school buildings.
Aussie Home Loans founder John Symond recently boasted that his sales had doubled since he acquired Wizard Home Loans late last year. While Symond has expressed concern that the enlarged first home owner grant has helped overheat the housing market, there’s little doubt the decision to keep the enlarged grants going for another three months will help keep loan sales strong for a little while longer.
Like John Grill from WorleyParsons, Zimi Meka and Bob Thorpe from engineering firm Ausenco will be pleased to see demand increase from the infrastructure sector over the next four to five years.
Sydney-based property developer Shaun Bonett is best known as the owner of an extensive portfolio of commercial property, but he is also the founder of online insurance comparison service iSelect. Given the changes to the private healthcare rebate levels, middle and high income earners are going to be furiously shopping around, which should help iSelect.
As founder and major shareholder of wealth management group Count Financial, Barry Lambert could be classed as a winner and a loser.
On the plus side, changes to superannuation rules and pension provisions will probably see clients heading back to their financial adviser for an update. But on the other hand, the super changes are likely to reduce the amount clients pump into their super accounts. Still, it’s a fair bet that the looming rise in the pension age from 65 to 67 will create work for Count over the long term.
The family behind the famous Ray White Group have interests in real estate, property development and mortgage broking. The extension of the enlarged first home owner grant should ensure that demand for residential property remains firm, despite the economic environment.
Queensland’s Anderson family are a secretive bunch, but they are probably best known as the founders and largest shareholders in GWA International, a building products company that specialises in kitchen and bathroom furnishings. Government money for social housing, hospitals, schools and universities should help boost sluggish demand.
The fortune of Sydney’s Sutton family is built around car dealerships, which has been a tough business over the past 12 months. But as with Stan Perron, the Suttons should see a few more business customers walking into showrooms eager to take advantage of the increased tax rebate for SMEs.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
