Federal Budget 2020: What you need to know

By Our Reporter
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With the economy currently in recession as a result of the COVID-19 pandemic, the Government in its Budget 20-21 has laid out a plan which it hopes will take the economy through.

Economic activity is forecast to pick up strongly from late 2020 and into early 2021, driven by a further easing of containment measures and improving business and consumer confidence, according to National statistical agencies, Refinitiv.

Here are some of the key highlights

TAXES
  • Tax relief for over 11 million individuals.
  • Low- and middle-income earners to receive tax relief of up to $2,745 for singles or up to $5,490 for dual income families in 2020–21 compared with 2017–18 settings.
BUSINESSES
  • Temporary full expensing available to around 3.5 million businesses on purchases of eligible depreciable assets. No asset limits.
  • Temporary loss carry-back available to around 1 million companies. Companies can offset tax losses against previously taxed profits to generate a refund.
  • Investing an additional $2 billion through the R&D Tax Incentive.
  • Cutting red tape for businesses.
  • Reducing record keeping requirements for fringe benefits tax.
  • Exempting employer-provided retraining activities from fringe benefits tax to encourage reskilling.
  • Small to medium businesses will access up to ten tax concessions for the first time.
JOBS
  • From 7 October 2020, eligible employers will be able to claim $200 a week for each additional Eligible employee they hire aged 16 to 29 years old; and $100 a week for each additional eligible employee aged 30 to 35 years old.
  • New jobs created until 6 October 2021 will attract the JobMaker Hiring Credit for up to 12 months from the date the new position is created.
  • Jobkeeper payment support extended for a further six months until 28 March 2021.
YOUR SUPER
  • For the first time, you will keep your super fund when you change jobs, stopping the creation of unintended multiple super accounts and the erosion of your super balance.
  • A new, interactive, online YourSuper comparison tool will help you decide which super product best meets your needs.
HOUSING
  • An additional 10,000 first home buyers will be able to purchase a new home sooner under the extension to the First Home Loan Deposit Scheme.
  • The additional 10,000 places will be provided in 2020-21 to support the purchase of a new home or a newly built home. This will allow first home buyers to secure a loan to build a new home or purchase a newly built dwelling with a deposit of as little as 5 per cent, with the Government guaranteeing up to 15 per cent of a loan.
DIGITAL AUSTRALIA

An additional $4.5 billion investment in NBN Co will bring ultra-fast broadband to millions of families and businesses. Funding of $29.2 million will also accelerate the rollout of the 5G network.

COVID-19 & HEALTH

$4.9 billion investment for a range of health measures ensuring Australians continue to receive the medical care and support they need throughout the pandemic. The flexible and scalable response enables the health system to respond, protecting all Australians.

ENVIRONMENT
  • The Government is investing $47.4 million to protect our oceans and restore their health and is committing $29.1 million to reduce the risk of chemical contamination on Commonwealth land.
  • The Government will invest $249.6 million over four years to modernise recycling infrastructure, reduce waste and recycle more within Australia.
ENERGY
  • To maintain lower prices, the Government will work with private providers to increase dispatchable generation capacity and the National Cabinet to ensure an efficient and integrated system.
  • The Government is securing Australia’s electricity, fuel and gas supplies to keep prices low, create new jobs and support local industries.

For more details, log on to www.budget.gov.au

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