Federal budget breakdown 2020: Everything you need to know

Everything you need to know about the budget - in five minutes or less. Picture: Shutterstock
Everything you need to know about the budget - in five minutes or less. Picture: Shutterstock

Income tax cuts

  • Stage two of the government's tax cuts has been brought forward and will be backdated to July, delivering a tax cut to more than 11 million Australians. The changes will bring tax relief of at least $2000 to 7 million people.
  • By lifting the 19 per cent threshold to $45,000 and the 32.5 per cent threshold to $120,000, low- to middle-income earners will be up to $2745 better off.

The economy

  • Australia's predicted debt and deficit have ballooned since the July economic update. The nation's gross debt will hit a peak of $1.1 trillion in June 2024, or 51 per cent of GDP.
  • The deficit is expected to peak at $213 billion this year before reducing rapidly thereafter.
  • Unemployment is not expected to peak as high as previously estimated. It is now slated to hit 8 per cent in the December quarter.

Health

  • Australians accessing mental health services will get a boost with the number of Medicare supported appointments with a psychologist doubling from 10 to 20.
  • Telehealth services will receive $112 million for people to access medical appointments remotely.
  • States and territories stand to receive a further $1.1 billion for hospitals as part of the COVID-19 response along with $750 million for testing.
  • The government has committed $1.7 billion towards a COVID-19 vaccine.

Education

  • The government extended its previously announced $1 billion JobTrainer program with 100,000 new apprenticeships and traineeships costing an additional $1.2 billion.
  • Businesses that employ these apprentices or trainees will be offered a 50 per cent wage subsidy by the government.
  • The decimated university sector has been offered a $1 billion lifeline in funding for new research.
  • There will also be 12,000 new Commonwealth supported places in higher education in 2021.

Infrastructure

  • Announcements of a $7.5 billion investment in transport infrastructure and $2 billion in road safety upgrades bring the government's infrastructure commitment to more than $14 billion for new and accelerated projects since the pandemic began.
  • Roads and railways will be the focus of upgrades, with major projects slated across all states and territories.
  • The government expects 40,000 jobs to be supported by increasing the Commonwealth's 10-year infrastructure pipeline.

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Business

  • Businesses with a turnover of up to $5 billion will now be able to write off the full value of any eligible asset that is purchased for the business. It is estimated that 99 per cent of Australian businesses will qualify for the initiative. Josh Frydenberg labelled the program a "game changer" which would unlock investment.
  • Businesses will also now be able to offset losses incurred before June 2022 against profits from 2018-19 and later.

Energy and environment

  • Low-emission energy sources and renewable technologies will get a $1.9 billion boost in a bid to address impacts of climate change.
  • An additional $1.8 billion was announced for the environment, including $250 million to modernise the nation's recycling infrastructure.
  • National parks, including Kakadu and Uluru, will receive $233 million, while $47 million will be put towards restoring the health of oceans. $2 billion will be injected into building new water infrastructure.

Wage subsidies

  • The Treasurer announced the government's new JobMaker program, which will offer businesses a hiring credit to hire 16- to 35-year-old job seekers. The credit will be available for 12 months and will pay $200 per week for workers under 30 and $100 per week for 30- to 35-year-olds.
  • All businesses will be eligible, apart from major banks, and Treasury estimates it will support about 450,000 jobs for young people.
This story Five-minute budget: your budget at a glance first appeared on The Canberra Times.

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