Federal budget 2020: Home buyers, pensioners, this year’s winners and losers
It’s a big spending Budget, with positives for home buyers, pensioners, new mums and small businesses. But not everybody’s a winner. Check to see how you’re affected this year.
Federal Budget
Don't miss out on the headlines from Federal Budget. Followed categories will be added to My News.
One thing is clear about the 2020 Federal Budget: there are a lot more winners than losers, with the big spend meaning more Aussies are set to benefit.
But not everyone’s a winner, either. Here’s how the 2020 Budget shapes up.
WINNERS
TAXPAYERS
The $1080 personal income tax cuts originally scheduled for 2022 will be backdated to this financial year. Lower and middle income earners will receive tax relief of up to $2745 for singles and up to $5490 for dual income families.
FIRST HOME BUYERS
The government’s First Home Loan Deposit Scheme is being expanded to include an extra 10,000 first home buyers for a new home or a newly built home. This will allow a deposit of as little as 5 per cent with the government to guarantee up to 15 per cent of the loan and is available until June 30, 2021.
VETERANS
More than $100 million has been allocated for veterans’ mental health and wellbeing programs including counselling services and programs to help serving personnel transition into civilian life.
PENSIONERS
Pensioners will receive two additional economic support payments – one in December and the second one in March — totalling $500.
TRADIES
The government will commit $2.8 billion to supporting trades including paying half the wages of 100,000 new apprentices and trainees, starting from October 5, regardless of geographic location, occupation, industry or business size.
SUPER FUND MEMBERS
Superannuation accounts will follow workers to their new jobs.
It will be easier to choose a new fund through a YourSuper comparison tool.
WOMEN
A total of $240 million has been provided for programs to support new cadetships and apprenticeships in science, technology, engineering and mathematics, job creation and safety at work and at home.
CHILDCARE
New mums will be paid parental leave despite losing their jobs during the pandemic.
The federal government has changed the work test period for Paid Parental Leave (PPL), to help 9000 mothers who would otherwise miss out.
HIGHER EDUCATION STUDENTS
Cash-starved universities will pocket $1 billion in bonus bucks for research.
BUSINESSES
More than 99 per cent of businesses – those with a turnover of up to $5 billion – will be able to write off the value of an eligible asset they purchase for their business until June 2022.
MANUFACTURERS
A $1.3 billion plan to target six national manufacturing priority areas has been set up. The six targets include food and beverages, resources technology and critical minerals processing, medical products, recycling and clean energy, defence and space.
ADULT CHILDREN
Young adults who can prove they are still dependant on their parents can stay on their parents’ private health funds until the age of 31.
The current scheme cuts off when a person turns 24.
MEDICINES
A major new drug subsidy will see women suffering from ovarian cancer gain access to a high cost $140,000 treatment, Lynparza, for just $41.
Ovarian cancer is hard to diagnose and as a result is one of the most deadly cancers with few treatment options.
ROAD AND RAIL USERS
A total of $3 billion will fast track major projects across the country including improvements to the New England Highway and Pacific Highway in NSW, major works on the Shepparton and Warrnambool rail lines and M80 Ring Road in Victoria, money for the Bruce Highway upgrade and Gateway Motorway, upgrades to South Australia’s Hahndorf Township and North-South Corridor, highway upgrades to the Carpentaria Highway in the Northern Territory, money for Tasmania’s Hobart to Sorell Corridor and Sorell causeways, as well as the ACT’s Molonglo River bridge and Monaro Highway Upgrade.
MORE NEWS:
How Australia will climb out of record $1 trillion debt pile
How first home buyers can snap up their dream property faster
Big change to paid parental leave as childcare centres raise fees
Super changes to stop Aussies being gouged by fees
Pensioners to pocket extra $500 tax-free payments
LOSERS
OLDER WORKERS
Older employees miss out on JobMaker hiring incentives. Businesses can hire younger workers aged 16 to 35 and have half their salary paid by the Federal Government for the first 12 months.
POORLY PERFORMING SUPER FUNDS
Funds that fail to deliver decent returns for members will be forced to disclose this to their members. They will also be stopped from accepting new members.
Treasurer Josh Frydenberg pointed out funds were in his government’s sights, with Australians collectively paying $30 billion in super fund fees each year – more than the average gas and power bill combined.
CSIRO
The CSIRO is set for a funding trim, with its $113m Budget being pared back to $99m in the 2023/24 financial year.
T ECH GIANTS
Changes to the so-called “hybrid mismatch rules” in this year’s Federal Budget are the latest in a series of measures designed to stop tech giants, like Facebook and Google, evading tax in Australia by funnelling revenue and profits through low-tax countries such as Singapore and Ireland.
OLDER AUSTRALIANS
An extra 23,000 home care packages were announced under a $2 billion aged care boost — just a third of the 66,000 places aged care advocates were expecting in the budget.
The packages will start to be released from this year and build on previous increases that will see a total number of home care packages grow to 185,597 by June next year.
MORE FEDERAL BUDGET NEWS
Barefoot Investor: Why Treasurer’s advice will leave you broke
$103m boost to build radioactive waste dumping ground
New plan to help Aussie diggers
New top cop squad and plan to catch spies, white collar crims
Stay at home Aussies can stay on parent’s health plan for longer
Virus-hit aged care sector gets $2bn boost
Private schools’ huge funding boost over public
Domestic violence victims left behind in 2020 budget
Hildebrand: What the Treasurer said, and what he really means