Budget 2021: Josh Frydenberg’s speech, decoded

You’ve heard the spiel, but what does it really mean? Sid Maher picks the highs and lows of the Treasurer’s budget speech.

Budget 2021 The budget speech decoded

Sid Maher picks the highs and lows of Treasurer Josh Frydenberg’s budget speech.

The good news

“Australia is coming back. In the face of a once-in-a-century pandemic, the Australian spirit has shone through. Doctors and nurses on the front line. Teachers and students in the virtual classroom. Businesses, big and small, keeping the economy moving. ‘Team Australia’ at its best. A nation to be proud of.’’

The bad news

“The COVID-19 recession will see our deficit reach $161 billion this year, falling to $57 billion in 2024-25. With more Australians back at work, this year’s deficit is $52.7 billion lower than was expected just over 6 months ago in last year’s Budget.’’

Debt

“Net debt will increase to $617.5 billion or 30.0 per cent of GDP this year and peak at $980.6 billion or 40.9 per cent of GDP in June 2025. This is low by international standards.’’

The plan

“We are better placed than nearly any other country to meet the economic challenges that lie ahead. Consumer sentiment is at its highest in 11 years. Business conditions reached record highs. And more Australians are in work than ever before. Our plan is working.’’

Tax relief

“For as long as the virus persists, so will we. So tonight, we go further. Announcing that over 10 million low-and-middle income earners will benefit from a new and additional tax cut. A stimulus measure that will support the recovery and build on tax cuts we announced in last year’s Budget and the Budget’s before that.’’

Kick starting investment

“Our record investment incentives are filling the order books of the nation. Over 99 per cent of businesses, employing over 11 million workers, can write off the full value of any eligible asset they purchase...so tonight we go further.’’

The home front

“Home builder has been a huge success...in this Budget our housing measures go even further. Helping another 10,000 first home buyers build a new home with a 5 per cent deposit. Supporting 10,000 single parents to purchase a home with a 2 per cent deposit. Increasing the amount that can be released under the First Home Super Saver Scheme from $30,000 to $50,000.’’

Keeping tourism alive

“This budget provides a further $2.1 billion in targeted support for aviation, tourism, the arts and international education providers. More than 800,000 half-price airfares. Support for more than 200 productions. Grants to English language course providers.’’

Tax umpire

“Small and family businesses are the engine room of our economy. They are at the heart of every local community.. As they strive to recover, we need the tax system to work for them, not against them. So tonight we provide small business with peace of mind that an independent umpire will stand between them and the ATO when it comes to debt recovery actions.’’

Skills and training

“We need to equip Australians will the skills they need to get a job today and tomorrow. In this Budget we double our commitment to the JobTrainer Fund.’’

Childcare

“Childcare is an important driver of higher workforce participation and women’s economic security. In this Budget we are making a further and targeted $1.7 billion investment in childcare.’’

Infrastructure

“Our economic plan capitalises on the opportunities that will exist on the other side of this crisis. Building the infrastructure our economy needs for the future with 10-year $110 billion infrastructure pipeline. Tonight we make $15 billion in additional infrastructure commitments.’’

The patent box

“Tonight, we are launching a new ‘patent box’ starting on 1 July next year. Under the patent box, income earned from new patents that have been developed in Australia will be taxed at a concessional 17 per cent rate — almost half the rate that applies to large companies.’’

National Disability Insurance Scheme

“The NDIS has made Australia a better country. We will spend a further $13.2 billion over four years to meet the needs of Australians with disability. As the scheme reaches maturity, our focus is on ensuring its sustainability and that it continues to deliver a high quality essential service for those who need it. Under the Coalition, the NDIS will always be fully funded.’’

Aged care

“The Prime Minister called the Royal Commission into Aged Care Quality and Safety. It reveals shocking cases of neglect and abuse. Tonight, we commit $17.7billion in practical and targeted new funding to significantly improve the system.’’

Mental health

“Everybody listening tonight knows someone struggling with their mental health. Suicide is the leading cause of death in those aged 18 to 44. Tragically, over 65,000 of our fellow Australians attempt to take their own lives each year...Tonight we extend our support with a $2.3 billion commitment to mental health care and suicide prevention.’’

Women’s safety

“All Australians have the right to be safe. The reality is, for too many women, this is not the experience. One in four women experience violence from a current or former partner. This must stop.’’

Retirees

“Our plan will also make it easier for Australians to prepare for retirement and to be more secure once in retirement. We will improve flexibility by no longer requiring older Australians to meet a work test before they can make voluntary contributions to superannuation. We will allow those aged over 60 to contribute up to $300,000 into their superannuation if they downsize their home, freeing up more housing stock for younger families.’’

Keeping the nation safe

“While we have been fighting COVID, other threats to our security have not gone away. To keep Australians safe from these threats — whether domestic or foreign — the government is providing an additional $1.9 billion over the decade to strengthen our national security. law enforcement and intelligence agencies.’’

Economic outlook

“Our economy is forecast to grow by 1.25 per cent in 2020-21, rising to 4.25 per cent in 2021-22. Employment is at a record high, with 75,000 more Australians in jobs than before the pandemic. And this Budget will help to create more than 250,000 more jobs by the end of 2022-23.’’

Conclusion

“This budget secures the recovery and sets Australia up for the future.’’