Federal Budget 2021: Watch Treasurer Josh Frydenberg’s speech live

Treasurer Josh Frydenberg says “Team Australia” is coming back from the COVID-19 recession as he hands down the 2021 budget.

The Treasurer has marvelled at Australia’s resilience while handing down the budget, declaring it outperformed almost every other nation recovering from the debilitating COVID-19 pandemic.

Josh Frydenberg has delivered his third federal budget, saying Australia is well on the road to recovery.

“In the face of a once-in-a-century pandemic, the Australian spirit has shone through,” Mr Frydenberg said.

Treasurer Josh Frydenberg delivers the budget. Picture: Sam Mooy/Getty Images

“Australia’s economic engine is roaring back to life.

“We are better placed than nearly any other country to meet the economic challenges that lie ahead.

“Team Australia at its best.”

Despite the significant and unavoidable cost of responding to the COVID-19 recession, Mr Frydenberg said the government’s plan to protect Australians from the virus and create more jobs was working.

He said half a million jobs had been created since the October budget, and business conditions had reached record highs.Net debt will hit $617.5bn or 30 per cent of gross domestic product this year, and peak at $980.6bn or 41 per cent of GDP in June 2025.

But Mr Frydenberg said Australia’s debt level was low by international standards.

“As a share of the economy, net debt is around half of that in the UK and US and

less than a third of that in Japan,” he said.

The Treasurer acknowledged the pandemic was far from over, as 800,000 new cases a day were being recorded across the world.

Mr Frydenberg said the global economic environment remained uncertain, adding that parts of Europe had fallen back into recession.

He said it was “remarkable” that after Treasury feared unemployment could reach 15 per cent and the economy contract by more than 20 per cent, the jobless rate was now 5.6 per cent.

“Australia’s fate could have been so much worse,” Mr Frydenberg said.

“The United Kingdom, France and Italy all contracted by more than 8 per cent, Japan and

Canada by around 5 per cent. Australia, just 2.5 per cent.”

The Morrison government’s plan to secure Australia’s economic recovery in this federal budget involves extending several initiatives that it believes have worked.

This includes a whopping $15bn infrastructure outlay, as well as incentives for tradies to buy new utes.

The government has also sought to ease barriers for first home buyers and tax cuts will be extended for low-income and middle-income earners.

In response to the damning aged care royal commission, the government will invest $17.7bn in aged care reforms, including funding another 80,000 new home care packages.

Working families looking to take on more days will also benefit from increased childcare subsidies for two or more children in care.

Mr Frydenberg said Australia’s manufacturing sector would be a key driver of future jobs and higher wages.

The push to lower the unemployment rate to below 5 per cent is a key factor in the government’s plan to pay for the incentives through tax receipts and lower welfare bills.

He also hit back at the opposition, which has repeatedly accused the government of making policy announcements on the run, saying the government had delivered on its promises.

“We promised more jobs and we delivered,” he said.

“Australia is coming back.”

From childcare subsidies to an infrastructure cash splash, here are some of the key themes of the 2021 federal budget:

ECONOMY

A post-COVID jobs boom is set to slash the forecast budget deficit by $53b this year.

According to The Australian, the budget deficit for 2020-21 will be $161bn compared with the $213.7bn forecast in the October 6 budget.

Strong jobs growth, a drop in JobSeeker payment recipients and a lift in company profit tax is behind the recovery.

CHILDCARE

The Morrison Government recently announced a $1.7 billion package that will increase the childcare subsidy to a maximum of 95 per cent for the second and subsequent children in care.

The funding will also abolish the $10,560 annual subsidy cap for high-income earners.

About 250,000 families are expected to benefit from the changes, which will save them about $2260 a year.

PROPERTY BUYERS

The federal government announced late last week a new program to support single parents looking to buy a home.

Under the Family Home Guarantee Package, single parents with a household income of less than $125,000 would only need to save a two per cent deposit to get into the housing market.

The scheme would target single mothers in particular, with the government estimating that out of the 125,000 single parents who are eligible, 80 per cent are women.

The program would support up to 10,000 single parents with dependants over four years, commencing 1 July 2021.

Single parents, and first-home buyers will be given extra assistance to buy into the booming Australian property market. Picture: Getty Images

Single parent first home buyers would be eligible as well as single parents attempting to re-enter the housing market after divorce and family breakdown.

First-home buyers are also set to benefit in this year’s Federal Budget.

Ten thousands places will be added to the First Home Loan Deposit Scheme (rebranded as the New Home Guarantee), which enables newbie buyers to purchase or build new homes with a deposit as low as five per cent.

The federal government guarantees the remaining 15 per cent.

The First Home Super Save Scheme will also be tweaked.

Those looking to get a foot on the property ladder will be able to release up to $50,000 of voluntary contributions to purchase a home so long as they live in it. This is up from $30,000.

WOMEN’S SERVICES

Cervical and breast cancer, endometriosis and reproductive health services will get a $354 million boost.

On Sunday, federal Health Minister Greg Hunt and MP Dr Katie Allen announced a $100 million investment in improving cervical and breast cancer screening programs.

There will also be a $96 million injection for new tests under the Medicare Benefits Scheme (MBS) for pre-implantation genetic testing of embryos for specific genetic or chromosomal abnormalities prior to pregnancy.

A $47.4 million boost will be given to ensuring the mental welfare of new and expecting parents and $26.9 million in funding for people with eating disorders.

Mr Hunt also outlined $22 million for additional gynaecology items on the MBS, including items for Assisted Reproductive Technology and long-term reversible contraceptives.

Other funding schemes announced include:

• $21.6 million for women’s health initiatives, including Jean Hailes for Women’s Health and the Pelvic Pain Foundation of Australia for the Periods, Pain and Endometriosis Program (PPEP-Talk)
• $19.3 million for the Pharmaceutical Benefits Scheme listing of Oripro (progesterone) to prevent women going into premature labour.
• $13.7 million for the Australian Preterm Birth Prevention Alliance to reduce pre-term birthrates.
• $6.6 million for Breast Cancer Network Australia to operate its helpline, rural and regional information forums and extending its consumer representative training program.

The Morrison Government recently announced a $1.7 billion package that will increase the childcare subsidy to a maximum of 95 per cent for the second and subsequent children in care. Picture: iStock

The government is expected to pour hundreds of millions of dollars into legal services to improve access for women and children dealing with family law matters and violence.

It is also set to include budget support for the recommendations of the Respect@Work: Sexual harassment national inquiry.

MENTAL HEALTH

The mental health system is expected to get a $2.3bn boost for suicide prevention and urgently needed crisis services.

It is understood that Health Minister Greg Hunt has secured a funding increase equivalent to more than $500m a year for mental health services to be delivered by health networks set up by the federal government, The Australian reports.

AGED CARE

Aged care will be overhauled with a $10 billion-plus injection, described by federal Health Minister Greg Hunt as “largest package in Australia’s history” for the sector.

The package is expected to address the recommendations issued by the Aged Care Royal Commission. Two of those — that more funding be given for home care packages, and boosting the daily fee pad on a per bed basis to aged care providers — are set to be included in the four-year investment.

Mr Hunt also confirmed the government would “respond in full” to the Commission’s recommendations in the Budget on Tuesday.

TAX RELIEF

About 10 million workers are expected to benefit from a likely extension of the low and middle income tax offset.

The offset is worth up to $1080 for those earning between $48,000 and $90,000.

It was slated as a one-off stimulus measure in last year’s Budget, but the Herald Sun in April revealed it is likely to be retained for another 12 months at a cost of about $7 billion.

SCHOOL LEAVERS

The JobTrainer program providing free short courses for thousands of young Aussies aged 17 to 24 will be extended.

Josh Frydenberg said the policy has subsidised tuition fees for 100,000 places since September.

RETIREES

More older Australians will be able to put some of the profit from the sale of their home towards their superannuation.

Currently, people aged over 65 can make a one-off contribution to their nest egg of up to $300,000.

From July 1, 2022, the aged threshold will drop to 60.

INFRASTRUCTURE

NSW: $2.03bn investment in the Great Western Hwy to separate local traffic and freight travelling through the Blue Mountains between Katoomba and Lithgow

SA: $2.6bn for the North-South Corridor through Adelaide; $148m for Augusta Highway duplication work and $161m for a Truro bypass on the Sturt Highway

VIC: $2bn for the Melbourne Intermodal Terminal, to be established in Truganina or Beveridge, which will connect to the 1700m Inland Rail link and take 5500 trucks a day off the roads; $10m for the Outer Metropolitan Ring Road, a 12-lane freeway from the outer southwest to outer north that would also connect to the freight hub.

QLD: $1.6bn in roads and rail funding; $400m for the Bruce Highway, from Gladstone to Rockhampton and Mackay to Proserpine, covering floodproofing, safety improvements and reducing congestion; $400m for the inland freight route from Charters Towers to Mungindi, helping to take truck traffic off the Bruce Highway; and for the Gold Coast and Logan, $126m for stage 3 of the light rail system and $178m for pre-construction work to upgrade 19km of rail track between Kuraby and Beenleigh.

DEFENCE

Defence Forces will get a $747 million funding boost as regional tensions escalate. Improvements will be made to ADF training facilities, weapons training simulation, and firing ranges in the Northern Territory.

– with NCANewswire

Originally published as Federal Budget 2021: Watch Treasurer Josh Frydenberg’s speech live