After entering our first recession in almost 30 years, COVID-19 has made 2020 a year that we’ll never forget (but so deeply want too). It has also made this budget, one to remember and to pay close attention too.
With unemployment set to peak at just under 10 per cent (according to Mr Frydenberg) and gross debt to approach $1 trillion, the hopes and dreams of the nation are with the Treasurer as he articulates the Morrison Government’s strategy of sustaining our economic health while positioning us for an economic fast-track recovery.
This is no easy task. There will be some winners and losers from this year’s budget, with the Government looking to use its fiscal strength to help our economy rebound as quickly as possible.
The key takeaways from last nights’ announcement:
- There’s a strong focus on getting the unemployment rate below 6 per cent
- Stimulus measures announced aim to encourage households to spend and invest
- Personal income tax relief with Stage 2 changes brought forward to 1 July 2020
- For businesses, changes to the R&D tax rules will incentivise innovation, and those with an aggregated turnover of between $10 million and $50 million can expect a tax break
- Investing $7.5 billion in new infrastructure spending for the states
- Upgrading the National Broadband Network
- Instant asset write-offs for businesses with turnover up to $5 billion
- JobMaker Hiring Credit for employers hiring eligible young workers
- Extending the First Home Loan Deposit scheme
- Changes to funding home care of the aged as an option to nursing homes
- Allocating an extra $1.5 billion to the manufacturing sector, including a $1.3 billion fund for grants to companies that co-invest to boost production in six priority areas
- The creation of 100,000 new apprenticeships or traineeships supported by a 50 per cent wage subsidy
- Removal of the 47 per cent fringe benefits tax for the provision of retraining provided by employers to redundant, or soon to be redundant employees
- $250 million investment in tourism and the regions.
The Morrison Government’s 2020 Federal Budget may very well provide a pathway for our nation’s recovery from COVID-19. This is certainly one of the most important budgets ever released and is centred around getting Australia out of recession and back to work.