A deficit of over $200 billion, a debt to reach almost 1 trillion – but some good news on the way.
The 2020/21 Federal Budget was hailed as a milestone to go down in history, revealing the full extent of damage done by COVID-19.
And there was damage.
More than $213 billion in deficit – which refers to the difference between Government revenue and spend – and almost $1 trillion in debt were confirmed by documents, with expectations Australians would be paying off the coronavirus bill into the 2030s.
But the Government also had some good news.
Tax cuts are coming
Tax cuts were announced for middle and high income earners.
Australians earning between $45,000 and $90,000 annually will receive a tax break equal to $20 a week.
And for workers earning $120,000 a year or more, the tax cut will be up to $70 a week until July next year.
But beyond putting more money in people’s pockets, ensuring people who wanted work got it was high on the agenda.
Young people have always faced historically higher unemployment rates compared to the rest of Australia.
To curb that, the Government announced a JobMaker Hiring Credit, which will give businesses cash for employing youth.
Wages for new hires between 16 and 35 years old who had accessed JobSeeker or Youth Allowance will be subsided by $200 a week, while wages for 30 to 46 year olds will be subsidised by $100 a week.
Opposition Leader Anthony Albanese said those over 35 “missed out” on budget measures that would benefit them.
But Scott Morrison assured older Australians that training and reskilling programs were one way they could benefit from the budget, and that those that had work would not be dumped for younger workers, because the subsidy would only apply to “new hires”.
Further Federal Budget News
- Promoting Domestic Tourism In Australia Key To Federal Budget
- Federal Government Expecting WA Border To Stay Closed Until April
For further details on the Federal Budget visit budget.gov.au.