Budget 5-minute guide: What’s in it for you

 

The Federal Budget takes a deep look into how the COVID-19 global pandemic has affected Australians - and what is being done to get our economy running again.

Here's a guide to what you need to know about the 2020 Federal Budget.

 

THE ECONOMY

$213.7b

The total deficit for 2020/21 with the forecast to still be $66.9b by 2023-24 financial year. Net debt will be 36 per cent of GDP this year, peaking at 44 per cent of GDP in June 2024.

Government to raise the debt ceiling to $1.1 trillion.

 

TAX

* $2745 in tax relief for low and middle-income earners, while households will get up to $5490.

* The 19 per cent tax rate threshold will be increased from $37,000 to $45,000. The 32.5 per cent tax threshold will be increased from $90,000 to $120,000.

Some Aussies will get some extra cash during tax time. Picture: iStock
Some Aussies will get some extra cash during tax time. Picture: iStock

* A capital-gains tax exemption created for granny flats provided a written agreement is in place

* The ATO has been given an additional $15.1m to target crime in the tax and superannuation systems.

 

EDUCATION AND TRAINING

* $1.2b package for Australian businesses to employ 100,000 new apprentices and trainees

* $326m provided for 12,000 new domestic university placements

* $550m for universities to provide 50,000 new higher education short courses in agriculture, health, IT, science and teaching

* The fringe benefits tax that applied to businesses retraining workers has been scrapped

* The Smith Family charity will get $38m to help Australia's poorest students finish high school.

 

ENVIRONMENT

* $249m boost for water and recycling industry, with another $103m for a National Radioactive Waste Management Facility at Napandee, near Kimba, South Australia

* Farmers and communities still struggling with the effects of the drought will be supported by $155.6m over four years.

* $233m for Uluru, Kakadu, Christmas Island and Booderee National Parks will receive $233m in funding, with $47.4m over four years for ocean health initiatives

 

HEALTH AND WELFARE

* $2.6b for five million pensioners and the unemployed who will pocket $500 in bonus payments ($250 in December and $250 in March).

* Thousands of new mums will qualify for paid parental leave even if they've been stood down during the pandemic (Usually they must be in paid work to qualify).

* No new childcare initiatives but record spending of $9bn next financial year.

* Funding for 23,000 new home care packages for older Australians

 

Older Aussies will benefit from the Federal Budget.
Older Aussies will benefit from the Federal Budget.

 

* Elderly Australians with a disability who can't get access to the NDIS will get help from a new $125 million program.

* Aged care homes will get $750 million to help them manage COVID including workforce retention bonuses, infection control and training for nurses.

* $7.6 million for parents experiencing stillbirths or death of a child under 12 months

* $60 million for DV "safe places" initiative

* $9 million for research into cancer in children and young adults

* Adult children will be allowed to stay on their parents' private health fund accounts until the age of 31

* Medicare funded mental health consults will double from 10 to 20

 

TOURISM

* $250 million program to encourage regional tourism

* $233.4 million over three years from 2021 to improve infrastructure in Commonwealth national parks. Hopes to improve tourism draw of these "internationally iconic places".

* $6 million over two years from 2020-21 to support local tourism operators and encourage tourism to the Great Barrier Reef.

 

JOBS AND WORKERS

* Budget papers predict spending on dole payments will soar to a staggering $41b in 2020/21 but almost halve to $22bn a year later.

* Under new reforms new superannuation accounts will no longer be created each time a worker starts a new job - instead the person's super account will follow them to their next gig.

* JobKeeper to end March 28, 2021 but a "back-to-work" wage subsidy scheme for businesses employing Australians under 35 who have been forced onto welfare payments.

* No change to JobSeeker rate

 

INFRASTRUCTURE

* $10b allocated in infrastructure spending, including $7.5 billion in road and rail projects spread across all states and territories

* Australia's domestic fuel security will benefit from $211m in funding while another $53m set aside for gas infrastructure

Manufacturing in Australia is set to expand. Picture: Steve Pohlner
Manufacturing in Australia is set to expand. Picture: Steve Pohlner

BUSINESS AND MANUFACTURING

* $1.5 billion allocated for manufacturing in six target areas: space, medicine, food and beverage, defence, resources tech, recycling and clean energy

* $800 million aimed at helping businesses work online, including $29.2m to boost early business access to the 5G network

* An additional 10,000 places have been created in the First Home Loan Deposit Scheme

* $419.9m allocated for upgrade of government's business register

* The ATO will offer simplified GST accounting methods for businesses with turnovers under $50m

* Fringe Benefits Tax to be removed for many businesses. Companies with turnovers of between $10m and $50m will be able to access up to 10 small business tax concessions

 

TECHNOLOGY

* $4.5bn NBN upgrade will replace copper lines and older hardware. The upgrade, which will unlock download speeds of up to one gigabit per second for millions more fixed-line users, will take place over the next three years.

* High-speed 5G technology, which could compete with the NBN, also received a boost, with the government committing $29.3m for 5G trials in industries including agriculture and manufacturing

 

* $1.67b has been earmarked for the government's cyber security strategy

* $260m has been allocated for the digital identity system for businesses

* The government will pay compensation of around $3b to Australians and citizens of other countries "for damage caused" by our national space program.

 

DEFENCE

* $101.7m allocated over four years for veterans' mental health support and services.

* Infrastructure programs for Pacific allies have been funded to the tune of $124m over 10 years. Among other projects, Australian will construct a border and patrol boat "outpost" on the Solomon Islands.

 

REGIONAL AUSTRALIA

* $100m allocated for the Regional Recovery Partnerships program, including $30m ­Regional Connectivity Program and $200m for the Building Better Regions Fund

* Farmers will be able to access $50m in rebates for putting in bores and dams

Originally published as Budget 5-minute guide: What's in it for you


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