Paul Osborne
(Australian Associated Press)
A SUMMARY OF THE 2020 FEDERAL BUDGET
ECONOMY
* Budget deficit of $213.7 billion in 2020/21
* Deficit narrows to $112 billion in 2021/22, $87.9 billion in 2022/23 and $66.9 billion in 2023/24
* Commonwealth net debt to rise to $703.2 billion in 2020/21 before hitting $966.2 billion in 2023/24
* Economic growth to fall by 1.5 per cent in 2020/21 before expanding by 4.75 per cent in 2021/22
* Unemployment rate of 7.25 per cent in 2020/21, before falling to 6.5 per cent the following year
* Inflation as measured by CPI to be 1.75 per cent in 2020/21
TAXATION
* Extra $12.5 billion in personal income tax relief over the next 12 months
* In 2020/21, low and middle income earners will get tax relief of up to $2,745 for singles and up to $5,490 for dual income families
* When the plan is fully rolled out in 2024/25 around 95 per cent of taxpayers will have a marginal tax rate of 30 per cent or less
* A $2 billion research and development tax incentive to apply from July 1, 2021
TAXABLE INCOME (TAX SAVING IN 2020/21)
$40,000 ($1,060)
$60,000 ($2,160)
$80,000 ($2,160)
$100,000 ($2,445)
$120,000 ($2,745)
$140,000 ($2,565)
$160,000 ($2,565)
$180,000 ($2,565)
$200,000 ($2,565)
BUSINESS
* From budget night to June 20, 2022, businesses with a turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed.
* Loss ‘carry-back’ will also be available to around one million companies, with losses incurred up to 2021/22 carried back against profits made in or after 2018/19.
* Changes to fringe benefits tax
* Small and medium businesses can access up to 10 tax concessions
HOUSING
* An extra 10,000 places in 2020/21 under the First Home Loan Deposit Scheme to buy a new home or newly-built home
* These first home buyers can secure a loan with a deposit of as little as five per cent, with the government guaranteeing up to 15 per cent of a loan
* $1 billion increase in the government guarantee to the National Housing Finance and Investment Corporation to support more affordable housing
INFRASTRUCTURE
* Boosting infrastructure spending to $110 billion over the decade
THE BUSH
* $328 million to help agricultural exporters and the recovery from drought, bushfires and COVID-19
* Digital platforms to make it easier for exporters to access overseas markets
* $550 million regional package to support tourism, rural health workforce, manufacturing and technology
YOUNG WORKERS
* JobMaker hiring credit to support around 450,000 people aged between 16 and 35 get into work, at a cost to the budget of $4 billion
* The credit of up to $200 a week will be available to employers for each new job they create over the next 12 months
* $1 billion JobTrainer fund will support up to 340,700 free or low-fee training places
* $1.2 billion to subsidise apprentice wages
WOMEN
* $240.4 million package to deliver job opportunities, support parents and increase participation in STEM industries
HEALTH
* $4.9 billion in health measures to deal with the coronavirus pandemic, including support for hospitals, protective equipment and vaccines and treatments
* $750 million for COVID-19 testing
* $112 million to continue Medicare-funded telehealth
* Extra $746.3 million to support senior Australians in aged care, workers and providers to respond to the pandemic
PENSIONERS
* $2.6 billion for two additional payments of $250 to pensioners and other eligible recipients
ENVIRONMENT
* $249.6 million over four years to modernise recycling infrastructure, reduce waste and recycle more
* $47.4 million ocean health package
* $29.1 million to clean up contaminated land
SUPERANNUATION
* Ability to keep your superannuation fund when you shift employers, effectively “stapling” the fund to the worker
SECURITY
* Extra $201.5 million to deliver a cyber security strategy, with new investment in training