The Government has delivered the delayed 2020-21 Federal Budget (Budget) with Treasurer Josh Frydenberg announcing it as the “jobs budget”, aiming to secure Australia’s economic recovery.
In one of the most important Budgets in Australian history, it focuses heavily on job creation, infrastructure, asset write-offs and personal tax cuts. There are also a number of supporting measures for agriculture, real estate, education, aged care and child care.
The Budget deficit is projected to blow out to $213.7 billion this financial year, or 11% of GDP, the biggest deficit in 75 years. The Coronavirus pandemic has fundamentally changed the way we do business in this country. It may be a slow climb back to surplus and out of the first recession in almost 30 years as Australian businesses start the journey towards recovery.
The major revenue measures announced in the Budget include:
- Bringing forward of the second stage of the personal tax cuts by two years
- Leaving the Stage 3 personal income tax cuts remain unchanged
- Allowing carry back tax losses from the 2019-20, 2020-21 or 2021-22 income years
- Extending the Instant Asset Write-Off for the full value of any eligible asset purchase
- Superannuation: including YourSuper, stapled accounts, MySuper benchmarking, super trustees
- Increased R&D incentives
- JobMaker hiring credit: Apprenticeship and trainee hiring incentives
- Additional payments to welfare recipients.
The Budget also includes funding designed to create jobs and support regional Australia’s economic recovery:
- $2 billion in concessional loans to help farmers overcome the drought
- $350 million to support regional tourism to attract domestic visitors back to the regions and a further round of the Building Better Regions Fund
- $317 million for Australian exporters to continue to access global supply chains.
AFS’s Federal Budget summary helps you navigate the details delivered in Parliament last night, covering the key impacts of the 2020 Federal Budget and what they mean for you.
Click here to view our Budget summary.