Winners and Losers from this year's Federal Budget

And the Winners are...

SMALL BUSINESS OWNERS

Small businesses, sole traders and those starting a business will enjoy tax breaks, less red tape and accelerated asset depreciation in a stimulus package worth $5.5 billion. The Government has proposed to increase the instant asset write-off threshold to $20,000 (up from $1,000), allowing small businesses to immediately deduct the business-use portion of a depreciating asset that costs less than $20,000.

WORKING PARENTS

Working parents earning between $65,000 and $170,000 will be about $30 a week better off after the Government resolved to simplify childcare subsidies.

AUSSIES FROM THE TOP END

A $5 billion fund will provide loans to private enterprise to build major projects such as rail lines, ports, electricity and pipe lines. There's also $100 million to build better transport links for the cattle industry.

SICK PEOPLE

Generic medicines will drop in price under changes to the Pharmaceutical Benefits Scheme. The Medical Research Future Fund will receive $400 million over the next four years, and $1.6 billion in new and expensive medicines will be funded for the first time.

FARMERS

Struggling farmers will be given $300 million for drought assistance. The Government has proposed changes to allow primary producers to immediately deduct capital expenditure on fencing and water facilities such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills.

Those not so lucky

STAY-AT-HOME & EXPECTANT MOTHERS

Stay-at-home parents whose household income is more than $65,000 will lose all childcare subsidies, while expectant mothers will no longer be able to claim both the government paid parental leave scheme and an employer paid parental leave scheme.

WEALTHY PENSIONERS

Pensioners with assets of more than $823,000 (excluding the family home) will no longer be eligible to receive pension payments. The threshold used to be $1.15 million.

BACKPACKERS

Foreigners who have come to Australia on a working holiday visa will no longer enjoy the $18,000 tax-free threshold. From day one, every dollar they earn in Australia will be taxed.

WELFARE CHEATS

The government expects to return about $1.5 billion to the Budget's bottom line over four years by increasing the capability of the Department of Human Services to detect, investigate and deter suspected welfare fraud and non-compliance.

PUBLIC SERVANTS

A total of $244 million is forecast to be saved over the next four years through cuts to the education and health departments. The government will also axe 35 government bodies.