Budget 2021: ALP puts focus on business pioneers

Anthony Albanese will back young entrepreneurs in his budget reply speech on Thursday night, as Labor moves to bolster its credentials as a party of aspiration and economic growth.

Anthony Albanese outside Parliament House in Canberra on Wednesday. Picture: Gary Ramage

Anthony Albanese will back young entrepreneurs in his budget reply speech on Thursday night, as Labor moves to bolster its credentials as a party of aspiration and economic growth.

The Opposition Leader will unveil a policy to offer 2000 young Australians guidance from universities and private-­sector ­incubators on how they can turn their bright business ideas into concrete ventures.

A selection criteria will be ­established by Labor if it wins government at the next election, with the program to be focused on final-year university students.

The opposition innovation spokes­man, Ed Husic, said the Startup Year policy, to be funded through the HELP system, would drive a generation of “innovators, risk-takers and wealth creators”.

“This policy harnesses the ideas and energy of young Australians and focuses on the huge potential our younger generations have to lead us into the ­future,” Mr Husic said.

“The goal of Startup Year is to increase the number and scale of new high-growth firms that are creating economic growth, innovation and good quality jobs for the future.

“We need to inspire and empower an ever greater diversity of communities and individuals to build great Australian companies that become world leaders in emerging global markets.

“This program will bring together the most innovative young entrepreneurs with universities and other industry leaders to work in concert to increase the success of the start-up sector.”

There is also expected to be an announcement concerning the renewables energy sector.

With Labor reluctant to criticise the big-ticket spending items in the budget on aged care and mental health, Mr Albanese will attempt to shift the debate to low wages growth.

The wage price index is estimated to rise by just 1.25 per cent in the year to June, and by 1.5 per cent a year later, while economic growth is forecast to run at 4.25 per cent in FY2021-22.

Mr Albanese on Wednesday denied the government’s big-spending budget was akin to one that would be delivered by Labor.

“It is not a Labor budget ­because it doesn’t increase wages; it doesn’t lift living standards,” he told Network Ten. “We are going to see a ­further decline in real wages over the four years to the forward estimates after eight years of wage stagnation.

“It is not a Labor budget because it doesn’t set Australia up for the future. There is nothing in there about climate change (or) new industries that can emerge.

“So we will have $1 trillion of debt, but no great legacy.”

With Labor dumping the major revenue measures that it took to the 2019 election, The Australian understands Labor MPs are split over whether to support the stage-three tax cuts.

Opposition Treasury spokesman Jim Chalmers signalled the ALP would oppose at least part of the legislated tax package, which would flatten the top tax bracket to a maximum rate of 30 per cent for all workers earning between $45,000 and $200,000.