Oct 07, 2020

Budget 2020-21 highlights – at a glance

Budget 2020-21 highlights – at a glance

The Federal Government is delivering an additional $17.8 billion in personal income tax relief to support the economic recovery, including an additional $12.5 billion over the next 12 months. More than 11 million taxpayers will get a tax cut, backdated to July 1 2020. 

A new JobMaker hiring credit will be available for employers who hire people on JobSeeker, aged 16-35. Treasury estimates that this will support around 450,000 jobs for young people and cost $4 billion from 2020-21 to 2022‑23.

The $1 billion JobTrainer Fund will create up to 340,000 free or low-cost training places for school leavers and job seekers. A new 50 per cent wage subsidy will support 100,000 new apprentices and traineeships.

Eligible businesses will be able to acquire new or second-hand assets under an enhanced $150,000 instant asset write-off scheme by December 31 2020 and have an extra six months, until 30 June 2021, to first use or install
those assets.

The Government will allow companies with turnover up to $5 billion to offset tax losses against previous profits on which tax has been paid to generate a refund. Loss carry-back will be available to around 1 million companies that employ up to 8.8 million workers.

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 in 2020-21. 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.

Since the start of the COVID-19 pandemic the Government has committed to invest an additional $14 billion in new and accelerated infrastructure projects over the next four years. These projects will support a further 40,000 jobs during their construction.