Australia What's in the budget? Here are the key measures we already know about
NT Budget boosted by national GST improvements, but financial books still stained in red
The Northern Territory government has announced significant improvements in its debt and deficit levels, largely off the back of a re-energised national economy. But the Budget books will still be stained in red for at least a decade.Despite the improvements, the Budget books are still stained in red, with no surpluses forecast for at least the next decade.
Treasurer Josh Frydenberg is unveiling his third budget tonight but, as usual, we already have a pretty good idea of what's in it.
Pre-budget leaks are a well-established tradition, and this year has been no exception.
Here are the major policies that have already been flagged ahead of the Treasurer's budget speech tonight.
The budget will assume thatat least.
Six months ago, in the October budget update, the government was assuming borders would reopen this year.
Promises, promises. Josh Frydenberg made a lot in last year’s budget, but did they stack up?
There were a few fails — JobMaker, women — but by getting the iron ore price wrong, the treasurer gained many billions for his coffers.But seven months later, many of Frydenberg’s signature splashes — wage subsidies and women’s economic security — have failed to have a big impact. And it’s unlikely many of the big assumptions underpinning that budget’s optimistic projections will play out.
But with Australia's vaccination program (which is a federal responsibility) suffering significant problems in recent months, the government says it may not open our borders until next year at the earliest.
The so-called "low and middle-income tax offset" will remain in place for another year.
The tax rebate, which workers receive after completing their tax returns, is worth different amounts to different income groups.
It was supposed to finish on June 30, but it will be extended for another 12 months.
A recent analysis by the Bankwest Curtin Economics Centre found if the rebate wasn't extended beyond June 30 this year,.
The majority of workers facing that tax hike would be women.
Push to attract overseas talent to Australia during coronavirus as part of jobs-driven federal budget
Australia will seek to "capitalise" on its management of COVID-19 with a $550 million plan to lure global businesses and talent from other countries. Treasurer Josh Frydenberg unveiled the package, worth $550 million over four years, ahead of today's federal budget.The new measures include removing red tape and changing tax rules to encourage the use of employee share schemes, which the government argues are critical for start-ups to attract and retain talented staff.
Expanded childcare subsidies worth $1.7 billion.
, spread over three years, to the childcare spend (the annual childcare budget is $10.3 billion).
However, the spending won't come into effect until July 2022.
When it does kick in,.
As things stand, childcare subsidies are capped at $10,560 (per child) if your family earns over $189,390. The new policy will remove that cap.
There are 200,000 families with incomes above that threshold that could benefit from the change.
The policy will also increase subsidies for families with two or more children under the age of five.
The subsidy boost (an extra 30 per cent) will apply to the second or subsequent child in care.
For example, if a family's first child in care is eligible for a 65 per cent subsidy and their second child enters care at the same time, the second child will be eligible for a 95 per cent subsidy.
Decade of budget deficits ahead as government spends billions to recover pandemic-hit economy
The Treasurer has declared Australia's economic engine is "roaring back to life" as he unveiled tens of billions in new spending in a budget that could be the Coalition's last before a federal election. The government is pitching its second pandemic budget as solely focused on Australia's recovery from the COVID-19 pandemic and recession.That will see a decade of deficits and debt that's set to peak at almost $1 trillion in 2025.In its bid to drive jobs growth, the government is targeting areas where there are skills shortages, like child and aged care."The economy is coming back.
However, once the oldest child turns six (or leaves child care), the subsidy for the second child will fall back from 95 per cent to the lower existing rate.
The policy is aiming to stop the cost of childcare doubling, or potentially tripling, for families with multiple children in care.
With property prices soaring and thousands of Australians migrating across the country in search of more affordable housing,.
The budget will include a number of policies in this area.
'Family Home Guarantee' for single parents:
Single parents will be given federal government assistance to purchase a home.
Under the scheme, a single parent will be able to purchase a dwelling with a 2 per cent deposit, with the government guaranteeing another 18 per cent of the value of the loan.
The scheme will support up to 10,000 single parents and will be spread over four years, averaging 2,500 single parents a year.
The scheme will be subject to property price caps.
'New Home Guarantee':
The government will be adding another 10,000 places for singles and couples to the New Home Guarantee.
Federal budget 2021 receives lukewarm reaction from Queensland tourism, social services sectors
The federal budget offers big promises of a strong economic recovery from COVID-19, but receives a lukewarm reaction from key Queensland industries hit hard by the pandemic. Queensland Tourism Industry Council (QTIC) chief executive Daniel Gschwind said it was "hard to find the highlights" in the budget for the state's struggling tourism providers."The tourism industry has certainly been the first into the crisis and will probably the last out of this crisis," Mr Gschwind said."I think a greater acknowledgement of a sector that is so important to the economy would have been welcome.
The scheme allows first home buyers to build a new home or buy a freshly built home with a 5 per cent deposit, with the government guaranteeing up to 15 per cent of the loan.
'First Home Super Saver Scheme' (FHSSS):
At the moment under the FHSSS, anyone wishing to save a deposit for their first home can make voluntary contributions to their superannuation fund, capped at $15,000 a year, to take advantage of the special tax treatment of super.
That maximum they can save under the scheme is $30,000.
However, that cap will be raised to $50,000 in the budget.
The $1 billionwill be extended by a year.
The package, designed for 17- to 24-year-olds, aims to create about 340,700 places nationwide to train school leavers or re-skill young people who are currently looking for a job.
The program, which was announced in July last year, was scheduled to expire in September but it.
The budget will include the federal government's "full response" to.
It will reportedly announce a funding program for the next four years' worth up to $18 billion.
The majority of the money will be used to build a better trained and paid aged care workforce.
The existing "downsizer scheme" that helps anyone aged 65 or older boost their super savings with proceeds from the sale of their family home will be extended to people who turn 60.
Scott Morrison defends $161billion debt as he faces Karl Stefanovic
The Australian prime minister fired up on Wednesday morning after Labor leader Anthony Albanese accused him of having 'no real plan beyond getting through the next election'.The fine print in the budget allows the government to set aside nearly $10billion for unspecified projects which have already been approved by the federal cabinet.
The scheme, introduced in the 2017-18 budget, allows people aged 65 or over to make a one-off contribution to their super account worth up to $300,000 after selling their home, outside of the normal rules governing the tax treatment of super.
From July 1 next year, people aged 60 or over will be able to make downsizer contributions to their super.
In a separate measure, self-funded retirees will be able to increase their super savings more freely because the government will be abolishing the work test.
At the moment, the work test applies to people aged between 67 and 74.
But it will be abolished for that age group on July 1, 2022, making it easier for them to top up their super.
Brewers and distillers
Small brewers and distillers will benefit from larger tax breaks, in a bid to encourage more investment in the sector.
At the moment, they can claim a 60 per cent refund on the excise they pay, up to $100,000 annually.
Under the new rules they'll be able to claim a full refund on the excise they pay, up to $350,000 annually.
It will reportedly triple the amount of alcohol producers can sell before excise tax applies.
An extra, across all states and territories.
There will be $2 billion for a new freight hub in Melbourne and $2 billion to upgrade the Great Western Highway between Katoomba and Lithgow in New South Wales.
There will also be funding for road projects in South Australia (Truro Bypass), Tasmania (Bass Highway), Northern Territory (National Highway Network), and the ACT (William Hovell Drive) as well as rail and freight upgrades in Queensland and Western Australia.
Video: Budget to include $10b for sector over 4 years (ABC NEWS)
Victoria's post-pandemic recovery 'on track' but budget deficit forecast to be $11.6 billion .
A better-than-expected deficit of $11.6 billion is forecast for next year in the Victorian budget as the state economy bounces back after last year's lockdown.The final deficit for the COVID-hit 2020–21 budget is nearly $6 billion less than forecast at $17.4 billion.