What to expect from Federal Budget
After a financial year ravaged by the COVID-19 pandemic, Australians are finally going to get a glimpse of the government’s economic recovery plan. Here are some of the schemes that could put more money in your pocket.
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The Federal Government is set to hand down the much anticipated Budget on Tuesday evening.
After the COVID-19 pandemic sparked a once-in-a-century recession, the results are set to be stark, revealing a record deficit exceeding $200bn.
The Morrison government has already confirmed income tax relief is on the way, as well as support packages for business.
Here is what we already know ahead of Tuesday night’s announcements:
INFRASTRUCTURE
— $7.5bn national boost for road and rail projects, including $1.1bn for Victoria headlined by Shepparton and Warrnambool rail line upgrades, Barwon Heads Road upgrade.
For the full list of projects set to be funded, click here.
MANUFACTURING
— $1.5bn package of grants to create new products and scale up businesses across six manufacturing priority areas: food and beverage, medical products, resources technology and critical minerals processing, recycling and clean energy, defence, space.
For more on this spending blitz, click here.
ENERGY AND EMISSIONS
— $1.6bn for Australian Renewable Energy Agency to invest over a decade, with expanded remit for technologies including hydrogen, carbon capture and storage
— $52.9m for gas market intervention ahead of potential federal investment in new pipelines.
To learn more on how this scheme may affect Victorians, click here.
HIP-POCKET RELIEF
— Income tax relief for workers as tax cut already legislated to begin in 2022 and 2024 are fast-tracked
— Cash boost expected for pensioners after payment rate remained frozen in September because inflation went backwards
— Tough lending rules wound back to reduce roadblocks for consumers wanting loans, credit from banks.
For more details on how much you could get from these tax cuts, click here.
Details on the handout for pensioners can be found here.
APPRENTICESHIPS
— $1.2bn to deliver 50 per cent wage subsidy for 100,000 new apprentices and trainees
Details on this scheme can be found here.
BUSINESS SUPPORT
— $800m package to support businesses to transition to digital technologies
— Major rewrite of insolvency laws to spare small businesses from expensive voluntary administration processes from which many do not recover.
Details on these changes can be found here.
FIRST HOME BUYERS
— Extra 10,000 places in scheme allowing first home buyers purchasing new properties to get home loans with just a 5 per cent deposit.
To learn more about this scheme, click here.
REGIONS
— $100m for regional recovery partnerships targeted at areas including Gippsland hit hard by drought, bushfires and COVID-19 restrictions
— $250m for regional tourism recovery initiative and the “building better regions” fund.
HEALTH
— $2bn extension of telehealth system until the end of March
— $10.6m to help move those aged under 45 out of residential aged care by 2022
STATE OF THE BUDGET
— Record deficit expected to top $200bn as debt soars toward $1 trillion
— Plans to pay down debt, deficit paused until unemployment rate falls well below 6 per cent.
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