Federal Budget: What it means for you

Federal Treasurer Josh Frydenberg handed down the Federal Budget last night, focusing on jobs, economic recovery after COVID-19, and big spending on essential services.

The deficit of $161 billion for 2020-21 is $52.7 billion better than forecast in last year's October 6 Budget.

The forward estimates have the deficit falling to $106.6 billion next year and down to $57 billion in 2024-25, but the deficits are predicted to continue for at least the next decade.

However, the government is splashing big cash dollars to stimulate the economy.

Federal Leichhardt MP Warren Entsch said Australia entered the crisis from a position of economic strength.

“The Morrison Government, as part of as part of its COVID-19 response, has committed $291 billion or 14.7 per cent of GDP in direct economic support for Australians, including thousands of Far North Queensland individuals, households and businesses,” he said.

Here is a snapshot of a few of the things in the 2021-22 Federal Budget that may interest you.

For the full budget head to Budget.gov.au.

Tourism

The Government has committed to a $1.2 billion package for the aviation and tourism sectors.

This includes $274.6 million in support for travel agents, tour operators, business events, zoos and aquariums and the 800,000 half price fares to fifteen regions across Australia.

However, the budget also painted a grim reality for those reliant on international tourists with budget papers working on the assumption that international borders will remain closed until mid-2022.

According to budget papers, “the rate of international arrivals will continue to be constrained by state and territory quarantine caps over 2021 and the first half of 2022”.

However, "small phased programs for international students will commence in late 2021 and gradually increase from 2022," the budget papers say.

The budget also leaves the door open for more bubble arrangements like that with New Zealand, saying quarantine caps will operate "with the exception of passengers from Safe Travel Zones".

Tax Cuts

Tax cuts will continue for Far North Queensland low and middle-income earners by up to $1,080 for individuals or $2,160 for couples.

Mr Entsch said around 69,600 taxpayers in Leichhardt will directly benefit from tax relief measures this year.

“Everyone loves seeing more of their hard-earnt money in their pockets rather than in the pockets of the taxman,” he said.

Daintree electricity

Federal Government will invest $19.3 million to support the construction of the Daintree Micro-grid project converting solar energy into hydrogen to bring power north of the river.

“It will remove the need to burn diesel in the Daintree, allowing residents to have access to a cleaner, more affordable, more reliable source of energy.

“The project is a game-changer for the Daintree community and delivers on my firm commitment to residents to deliver a solution to their power needs,” said Mr Entsch.

Remote internet access

The Morrison Government will invest $130.4 million to improve connectivity in regional, rural, and remote communities.

Women

$353.9 million will be invested over the next four years to support women’s health, including funding for cervical and breast cancer, endometriosis and reproductive health.

$261.4 million over the next two years to boost frontline services and initiatives that fall under Australia’s National Plan to Reduce Violence Against Women and their Children.

$164.8 million over three years to provide $1500 payments for those escaping violence and further payments of up to $3500 to help with bonds, school fees and other goods.

An extra $9.3 million to address sexual harassment at work, including support for victims and changes current regulations.

5000 extra training places for women wanting to start in non-traditional trades.

Age care

$17.7 billion package of support for aged care in response to the Royal Commission into Aged Care Quality and Safety.

Key reforms include:

• Supporting senior Australians who choose to remain in their own home.
• Improving and simplifying residential aged care services and access.
• Improving residential aged care quality and safety.
• Supporting and growing a better-skilled care workforce.
• New legislation and stronger governance.

Extending the instant asset write-off

The instant asset write-off program will be extended until June 2023.

The program allows businesses with up to $5 billion in aggregated annual turnover or total income to immediately deduct the full cost of eligible depreciable assets of any value.

Childcare and education

$1.7 billion investment to make childcare more affordable by increasing subsidy for 250,000 families. Families save an average of $2200 each year.

$10,560 cap in Child Care Subsidy for families earning more than $189,390 will be scrapped.

$1.6 billion for preschool funding, with money, rolled out through an agreement with states to deliver reforms.

Commonwealth funding for all Australian schools to reach $24.4 billion in 2021-22.

Home Ownership

10,000 more first-home buyers will be able to build a property with a five per cent deposit.

10,000 single parents can purchase a home with a two per cent deposit.

Roads

The Morrison Government will invest $240 million to bust congestion and improve road safety along the state-owned Cairns Western Arterial Road.

The investment is part of a wider $1.4 billion infrastructure investment for new projects across the state that will be announced in this year’s federal budget.

The Morrison Government’s $240m investment represents the full 80 per cent required towards the project’s overall $300 million costs.

The Queensland Government will need to contribute $60 million, or its 20 per cent share, towards the project.

Tackling the ghostly killers in the ocean

The Government is launching a crack-down on the tonnes of deadly ghost nets that indiscriminately kill tens of thousands of marine animals in Northern Australian waters each year.

The Australian Fisheries Management Authority, in partnership with Parks Australia, recently recovered two massive nets, spanning a combined 820 metres and weighing an estimated 3.7 tonnes, that are believed to have drifted into our waters after being lost, discarded or abandoned by foreign fishing vessels.

As part of a $14.8 million investment by the Morrison Government, multiple agencies are collaborating with Parks Australia to better track deadly ghost nets and identify their sources, while embarking on a range of initiatives to remove them from our waters.

Jobs

$506 million to extend the JobTrainer scheme and deliver 163,000 training places in areas of need, to be matched by states and territories.

The $450 a month minimum wage threshold on super scrapped – benefiting around 300,000 workers.
$26.1m for non-university higher-education providers delivering 5000 extra short course places.

Additional $2.7 billion for employers to take on 170,000 new apprentices and trainees.

An extra $481.2 million in Transition to Work employment service.

$213.5 million to extend and expand the Local Jobs Program, helping people hit by the pandemic to upskill and find new careers.

$29.8 million to help farmers attract and retain workers.