The Budget 2020

As I type the Australian Treasurer is delivering the postponed annual budget. A year ago he was forecasting a budget surplus

Billions of dollars in fast-tracked tax cuts and younger worker wage subsidies underline the Federal Government's budget recovery pitch, as Australia's recession sends debt and deficits to record levels. Naturally the richer you are the more money you retain in tax cuts

Treasurer Josh Frydenberg's coronavirus-delayed budget includes $50 billion to bring forward tax cuts and $4 billion in subsidies for businesses to hire unemployed workers aged between 16 and 35.

The focus of the Budget is getting those who lost their jobs to COVID-19 back to work as Australia faces its biggest economic challenge since the Great Depression.

Cash payments worth $500, aimed at stimulating a struggling economy, will go to seniors, carers and disability support recipients, costing $2.6 billion, and an extra 23,000 in-home aged care packages will be offered, costing $1.6 billion.

The economic devastation sparked by coronavirus will see budget deficits continuing for at least another decade.

This financial year, the deficit is forecast to surpass $213 billion.

More to come!

https://www.abc.net.au/news/2020-10-.../12684802?nw=0

Re: The Budget 2020

Oh dear. Never mind. Australia will probably be alright in the end. Not the same as it was - but hey! C'est La Vie.

Re: The Budget 2020

Tax Cuts

The Budget includes tax cuts for most workers, primarily by bringing forward income tax cuts scheduled for the middle of 2022.

The stage two changes alter the boundaries of the 32.5 per cent income tax bracket, meaning people will pay 19 cents or less for every dollar earned up to $45,000, then 32.5 per cent on ever dollar earned between that and $120,000.

For someone earning between $45,000 and $90,000 the changes are worth $1,080 (on top of the $1,080 provided under the LMITO).

Handouts for Older People

As part of further support for people not in work, the Government will offer two more tax-free payments of $250 to pensioners and others on government support.

Older Australians will also benefit from a $1.6 billion spend over the next four years to introduce 23,000 additional home care packages, giving people the option to keep living at home.

In response to the COVID-19 crisis, the Government's already put $1.6 billion towards the sector and foreshadowed it would have more funding announcements once it receives and responds to the aged care royal commission, due next year.

Young People

Alongside women, young people were most likely to have lost their job during the pandemic and the budget is addressing that.

The Government's newly unveiled JobMaker Hiring Credit will give $200 a week to employers who hire anyone aged 16-30, and $100 a week for any worker aged 30-35.

New employees must have been on JobSeeker, be given at least 20 hours of work a week and all businesses except for the major banks will be eligible.

It's expected it'll create 450,000 jobs for young people and will be available for businesses for up to a year.

Help for Small Business

Effectively, businesses that make new investments will be able to write off the entire cost in one year, rather than having the asset depreciate over several years.

The scheme will be available instantly to all businesses with a turnover of less than $5 billion each year.

Immigration Buggered

With the international borders still closed, our migration numbers are expected to go backwards, which is a bad thing for the economy.

The Government is forecasting our net overseas migration will fall from around 154,000 in 2019-20 to -72,000 by the end of 2020-21.

It'll gradually increase to around 201,000 in 2023-24.

Re: The Budget 2020

It looks like the government has got the numbers to get their university changes through the Senate. Under the tertiary education overhaul, humanities and communications will be in the same cost bracket as law degrees

How fees will change:

• Agriculture and maths degrees: 62pc decrease
• Teaching, nursing, clinical psychology, English and languages degrees: 46pc decrease
• Science, health, architecture, environmental science, IT and engineering degrees: 20pc decrease
• Medicine, dental and veterinary science degrees: no change
• Law and commerce degrees: 28pc increase
• Humanities degrees: 113 per cent increase

What Students will pay or borrow:

Re: The Budget 2020

Bruce you've provided an excellent summary of the 2020 "fudget" I could not possibly add any more. Except..Yes you're right Art . Australia will be alright. We're alright now. We always are. (Optimist till death)

Re: The Budget 2020

Now that the budget details has been released there has been time for analysis. At the moment the opposition Labor Party has said they will support the proposals.

There are short comings and criticism however.

The additional 23000 Aged Care packages won't even touch the sides with 100000 people waiting for approval. 28000 people have died waiting for a package.

Tax cuts won't help those who have lost their jobs and during a recession people tend to save additional cash rather than spend (the government wants people to spend like there is no tomorrow)

The Jobkeeper cliff is still coming when the payments cease in March 2021.

Relaxation of bank lending rules and trading while insolvent laws set a dangerous precedent

There is no help for women, no changes to child care arrangements and no help for women over 45 who have the most trouble finding jobs.

The government payments to business to employ young people and absolutely no help for workers over 35 years might lead to those on older people on Jobseeker (dole) not being able to get jobs as young workers are $200 a week cheaper. Businesses might also release older workers or put them on less hours to take advantage of the government payments.

There are no proposals to raise the dole from the pre-covid $40 a day when the current Jobseeker Covid payments cease.

What do you think?