EXPLAINER: What the 2020 Federal Budget means for Territorians

THE Federal Budget handed down on Tuesday night by Treasurer Josh Frydenberg is a mixed bag for the Northern Territory. FIND OUT what it means for Territorians HERE.

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TREASURER Josh Frydenberg’s Budget tonight was one of mixed fortunes for the Northern Territory.

The budget contained a handful of pleasant surprises, including $51m to support Royal Darwin Hospital over three years, including $16.8m for this financial year.

The federal government is providing funding to maintain the National Critical Care and Trauma Response Centre at the hospital to respond to the coronavirus.

But the budget papers also reveal the NT will receive $2.7bn in GST payments this financial year — a reduction of about $100m.

This is substantially better than the $608m the NT government estimated it could lose in GST funding in 2020/21 in its July budget update.

Businesses will be provided with incentives to hire young people, especially between the ages of 16 and 35 years old.

For those that hire someone under 30, a JobMaker hiring credit will be paid for up to 12 months at the rate of $200 a week.

Businesses will also be offered a 50 per cent wage subsidy for every apprentice they hire.

The two new initiatives are expected to create about 5500 Territory jobs, according to projections from NT Treasury.

The federal government decided against fast-tracking the $216m Kakadu National Park rescue package in this budget.

However, it did bring forward $74.8m to fast-track the delivery of the construction of Charles Darwin University’s campus in Darwin’s CBD over three years. Funding for the precinct was provided through the government’s $97.3m contribution to the Darwin City Deal.

Chief Minister Michael Gunner said he was told by Deputy PM Michael McCormack last night that the NT would be eligible for $96m in road safety upgrades, in addition to the $190m in NT highway upgrades that have already been announced.

The NT will get $3.5 million over two years from 2020-21 for land management and hazard reduction works and engagement activities at the Rum Jungle mine site near Batchelor.

The Federal Government has also pledged $17.5 million to rebuild public housing damaged in the NT by Tropical Cyclones Lam and Nathan in 2015.

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Australians on welfare — including pensioners, carers, family and disability welfare recipients — will be paid two $250 cash payments in December and March, 2021.

Territorians can look forward to personal income tax cuts which have been brought forward as part of the budget and backdated to this financial year.

This means the majority of Aussies earning between $45,000 and $90,000 will save $1080 a year or about $20 a week under the tax cuts.

People earning $90,000 or more will get $1215 back, while those that earn $120,000 or more will get $2565 back.

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Treasurer Josh Frydenberg said the 2020 Budget was focused on getting people back into work and pouring money into the economy.

The Federal Government has abandoned its plans to return to surplus, with the deficit forecast to plunge $213 billion into the red in 2020-21.

Some of the measures that have already been announced include:

– $190m in highway upgrades for the NT, including $120m for Carpentaria Hwy, $23m for Stuart Hwy in Coolalinga and $47M in national network highway upgrades.

– $1.2 billion for a 50 per cent wage subsidy of up to 100,000 new apprentices and trainees

– First Home Loan Deposit Scheme will be extended to help an extra 10,000 people

– $1.5m grant for conservative work on heritage-listed Hermannsburg Historic Precinct, west of Alice Springs.

– $7.5 billion for major infrastructure projects

– $1.5 billion for manufacturing in six key areas

– Tax breaks for businesses with an aggregated annual turnover between $10 million and $50 million

– NAIF to undergo reform to make it more flexible, able to take on riskier projects.

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