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Australia’s Budget Recovery Plan

In 2020, Australians have been tested like never before, with flood, drought, fires and a global pandemic.
 
COVID-19 has resulted in the most severe global economic crisis since the Great Depression.
  
Australia’s economy has been hit hard.

 

In the June quarter, Australia’s economy contracted by 7%. This compares to falls of around 12% in New Zealand, 14% in France, and around 20% in the UK.

 

In response to this crisis, the Government has committed unprecedented support to save lives and is providing $257 billion in direct economic support to cushion the blow and strengthen the recovery. 

 

Together, our actions saved 700,000 jobs. 
 
We could do this because we entered this crisis in a position of strength, brought the Budget back to balance for the first time in 11 years and maintained our AAA credit rating.
 
Now, our economy is fighting back.
 
More than half of those who lost their jobs are back at work.
 
However, there remains a monumental task ahead.
 
This Budget sets out the next phase of our economic recovery plan.

 

The 2020-21 Budget commits a further $98 billion, including $25 billion in direct COVID-19 response measures and $74 billion in new measures to create jobs.

 

Under our plan, the economy is forecast to grow by 4¼ per cent next calendar year and unemployment is expected to fall to 6½ per cent by the June quarter 2022.

 

Without our economic support the unemployment rate would have remained above 12 per cent for the next two years.
 
Key Budget Initiatives:


• Providing an additional $17.8 billion in personal income tax relief for more than 11 million hard working Australians, putting more money in their pockets to spend in small businesses across the country and help create jobs.

 

• Compared to 2017-18, someone earning $40,000 will pay 21% less tax. Someone earning $80,000 will pay 11% less tax. Lower and middle income earners will this year receive tax relief of up to $2,745 for singles, and up to $5,490 for dual income families, compared with 2017-18.

 

• Incentivising business to invest in their business, creating more economic activity and more jobs.

 

• Over 99% of businesses to immediately write off the full value of eligible assets they purchase for their business. 

 

• Supporting nearly half a million young Australians with a new JobMaker hiring credit. The $4 billion JobMaker Hiring Credit will be payable for up to 12 months for each new job and is available from tomorrow (October 7) to employers who hire eligible employees aged 16-35.  


• Investing a record amount in skills and training to make sure Australians have the skills they need to get a job. Our JobMaker Plan includes the establishment of the $1 billion JobTrainer Fund to create up to 340,000 free or low-cost training places for school leavers and job seekers.

 

• Investing more in infrastructure now to create more jobs. The Government’s infrastructure investments are supporting 100,000 jobs on worksites across the country. The Budget expands our record 10-year infrastructure pipeline to $110 billion.

 

• Supporting our manufacturing industry to build our sovereign capability and help create jobs. The Budget invests $1.5 billion in our Modern Manufacturing Strategy – ensuring we have an internationally competitive and resilient manufacturing sector, and in the process create more high value jobs.

 

• Record funding for hospitals, schools, child care, aged care, and disability services. 

 

• 2,000 new and amended medicines listed on the PBS, including medicines to treat leukaemia, melanoma, Parkinson’s disease and ovarian cancer.

 

• $5.7 billion in support for mental health services. 
 

We have your back. We have a plan to rebuild our economy and create jobs.

 

Having a job means more than earning an income. It means economic security. It means independence. It means opportunity. We can’t let this COVID-19 recession take that away.

 

Read more about the Governments Budget Recovery plan at https://ourcomeback.gov.au/