Economy Recovery Plan for Australia: Budget 2020

The Morrison Government’s message to Australians is that they have our back.

They have a plan to rebuild the economy and to create jobs. They will do this by:


It is creating a JobMaker Hiring Credit that support nearly half a million young Australians in work.

Investment in skills and training.

Provide manufacturing plan.

The Government will provide Tax incentives and tax cuts.

They are building the infrastructure.

Guarantee healthcare and the essential services.

“Together we will rebuild our economy and secure Australia’s future”.

THE HON. JOSH FRYDENBERG MP, TREASURER

Tax Relief for Workers:

Last year, the Morrison Government legislated tax relief so people could keep more of what they earn. They have brought this forward, and the below will be available immediately.

  • Increasing the low income tax offset from $445 to $700;
  • lifting of the 19% threshold from $37,000 to $45,000; and
  • lifting the 32.5% threshold from $90,000 to $120,000.

More than 11 million taxpayers will get a tax cut backdated to 1 July this year.

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.

The Government will maintain the Low and Middle Income Tax Offset for an additional year.

These changes will see more than 7 million Australians receive tax relief of $2,000 or more this year.

As a proportion of tax payable compared to 2017-18, the most significant benefits will flow to those on lower incomes.

  • Those earning $40,000 will pay 21% less tax
  • Those on $80,000 will pay around 11% less tax this year.

Building and Infrastructure

Rebuilding the economy includes building more roads, rail and bridges.

In this Budget, the Morrison Government is expanding its record 10-year infrastructure pipeline which is already supporting 100,000 jobs on worksites across the country today.

Together with what has been announced since the start of the crisis, this Budget will see $14 billion in new and accelerated infrastructure projects to support an additional 40,000 jobs.

This will boost productivity and deliver long term benefits for Australians.

Major projects are being funded across each state, including:

  • The Singleton Bypass and Bolivia Hill Upgrade in New South Wales;
  • The upgrade of the Shepparton and Warrnambool Rail Lines in Victoria;
  • The Coomera Connector in Queensland;
  • The Wheatbelt Secondary Freight Network in Western Australia;
  • The Main South Road Duplication in South Australia;
  • The Tasman Bridge Upgrade in Tasmania;
  • The Carpentaria Highway Upgrades in the Northern Territory; and
  • The Molonglo River Bridge in the Australian Capital Territory.

These and many other projects will help set Australia up for the future.

Building more infrastructure now means more jobs now.

A further $2 billion is being invested in road safety upgrades to save lives.

Funding for these shovel ready projects will be provided on a use it or lose it basis.

The Local Roads and Community Infrastructure program is also being expanded.

This will mean an additional $1 billion to support local councils to upgrade local roads, footpaths and street lighting immediately.

Increase Home Ownership and affordable housing

An additional 10,000 first home buyers will be able to purchase a new home sooner under our First Home Loan Deposit Scheme.

This builds on the 20,000 first home buyers we are helping to purchase a home this year under this Scheme with a deposit as low as 5%.

In this Budget, the Morrison Government is also enabling an additional $1 billion of low-cost finance to support the construction of affordable housing.

This takes the total concessional finance that has been made available to community housing providers to $3 billion.

This is in addition to the $4.6 billion a year the Government provides in rental assistance.

The Government is also investing $150 million in the Indigenous Home Ownership Program to construct new homes in regional areas, creating more jobs and helping hundreds of indigenous families buy their own home.

Guaranteed Essential Services

The COVID-19 crisis has confirmed how vital it is to have a strong economy that can continue to guarantee the delivery of essential services.

In this Budget, there is record funding for hospitals, schools, child care, aged care and disability services.

HEALTH

The Budget will deliver record funding for health, with total spending of $93.8 billion in 2020-21, an increase of almost 43% since 2014-15.

Medicare subsidised telehealth services have been extended, enabling more than 30 million consultations since the crisis began.

This Budget includes $376 million for new and amended listings on the PBS, including lifesaving medicines to treat leukaemia, melanoma and Parkinson’s disease.

This includes the listing of Lynparza® to help women with ovarian cancer.

MENTAL HEALTH

NDIS

An additional $3.9 billion is being provided for the NDIS which is providing life-changing support to 400,000 Australians with a disability.

SUPPORTING PENSIONERS

To support our Age Pensioners, the Government provided $750 payments in April and July.

Now, Age Pensioners will receive an additional $250 payment in December and another $250 payment in March.

AGED CARE

This Budget will provide further support to older Australians who wish to stay at home for longer by providing $1.6 billion for an additional 23,000 home care packages across all package levels.

99% of all those seeking an in-home aged care place now have access to some form of in-home support.

EDUCATION

The Government is investing record funding in Australian schools.

The Government will provide an additional $146 million to improve the educational outcomes, particularly for disadvantaged students.

They have also guaranteed $18 billion in funding for all higher education institutions in 2020 in response to the COVID-19 pandemic.

VETERANS

Eligible veteran income support recipients and concession cardholders will also receive two additional $250 Economic Support Payments in late 2020 and in early 2021.

Protecting the environment

The Morrison Government is banning the export of plastic, paper, tyres and glass waste.

In the words of the Prime Minister: ‘it’s our waste, it’s our responsibility’.

This Budget will invest $250 million to modernise our recycling infrastructure, stop more than 600,000 tonnes of waste ending up in landfill and by doing so, help to create an additional 10,000 jobs.

Keeping Australians Safe

The Government is bringing forward $1 billion in planned defence spending to support jobs as well as extending a range of health and employment programs for our veterans, helping them transition to civilian life.

Recovery In Our Regions

The Budget includes a package of measures to create jobs and back regional Australia’s economic recovery. These include:

  • $2 billion in concessional loans to help farmers overcome the devastating drought;
  • $350 million to support local tourism and attract domestic visitors back to the regions and a further round of the Building Better Regions Fund;
  • $317 million for Australian exporters to continue to access global supply chains, building on the 80,000 tonnes of exports we have already helped get to market.