Federal Treasurer Josh Frydenberg addressed the Australian Parliament to deliver one of the most important budgets in our nation’s history.
COVID has hit the world on two fronts, health and economic.
The budget outlines our economic recovery, getting Australia back on track, and navigating our way to COVID normal.
Economy set to shrink 3.75 per cent this calendar year, then grow 4.25 per cent in 2021.
Official unemployment rate is now forecast to peak at 8 per cent in December quarter. It's expected to stay above 6 per cent until mid-2023.
A million fewer people will live in Australia than previously forecast, with Victoria to take the largest proportional population hit.
Personal income tax cuts will be brought forward and backdated.
Tax cuts will see those earning between $45,000 and $90,000 take home an additional $1080 per year.
The top tax bracket has been lifted from $180,000 to $200,000.
The less tax you pay, the more money you have in your pocket and the more you can spend.
$4 billion JobMaker Hiring Credit Scheme - given to employers who hire a person under the age of 35 and on welfare.
Government will subsidise half of all wages of apprentices and trainees for their first year of employment.
$14 billion in fast tracked infrastructure projects.
$688 million HomeBuilder scheme providing cash grants to encourage Australians to renovate or build new homes.
First home buyers
An additional 10,000 places have been created in the First Home Loan Deposit Scheme – enabling eligible Australian’s to buy a home with just a 5 per cent deposit.
$1.5 billion over four years to manufacturers for resources technology, food and beverage, medical products, clean energy and recycling, defence and space.
Business with a turnover of less than $5 billion will be able to write-off the value of eligible assets they purchase until June 2022.
$240 million in measures and programs to support new cadetships and apprenticeships for women in science, technology, engineering and mathematics.
The CSIRO will receive $459 million in additional funding.
$1 billion of new research funding will be provided to universities.
$1.9 billion in new funding to support low emissions technologies and renewable technologies.
Debt and deficit
Our deficit for this year will reach $214 billion, falling to $67 billion by FY24.
Net debt will increase to $703 billion or 36% of GDP this year, peaking at $966 billion or 44% of GDP in 2024.