Australia Federal Budget 2021: Here are nine things to know

Summary

• Australian Treasurer Josh Frydenberg will present the 2021-22 Federal Budget on Tuesday amid expectations that coronavirus pandemic would force Canberra to shrink its spending.
• The ‘pandemic budget’ would be tabled in the lower house of the parliament at nearly 7:30 PM (AEST).
• The federal budget 2021 is expected to boost employment and infrastructure development, according to Frydenberg’s recent address to the Australian Chamber of Commerce and Industry. 

Australian Treasurer Josh Frydenberg will present the 2021-22 Federal Budget on Tuesday amid expectations that coronavirus pandemic would force Canberra to shrink its spending. The ‘pandemic budget’, which would be tabled in the lower house of the parliament, at nearly 7:30 PM (AEST) is expected to boost employment and infrastructure development, according to Frydenberg’s recent address to the Australian Chamber of Commerce and Industry. Australia may report a record budget deficit for the current financial year.  

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“This will be another pandemic budget being delivered in the midst of a once in a hundred-year pandemic and just seven months after the last budget. The Budget will lay out the next phase of Australia’s economic recovery plan, to grow our economy so we can deliver the jobs and guarantee the essential services Australians rely on, and keep Australians safe,” Frydenberg has then said.

Even as the budget would be out later in the evening today, Prime Minister Scott Morrison federal government has already outlined a few areas of focus.

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Infrastructure boost

The government may provide stimulus measures in the budget to focus on infrastructure incentives. The government will earmark over AU$10 billion building roads and rail infrastructure. The allocation is expected to support 30,000 jobs. The measures would benefit majority of states and territories.

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Housing incentives

As per the new ‘Family Home Guarantee’ Scheme, single parents will be encouraged to purchase their own house. The single-parent families will be able to access home loan with just a 2% deposit. The Australian government will guarantee the remaining 20%.

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Agriculture funds

With an aim to boost the biosecurity measures to protect against diseases and pests, the government has pledged AU$371 million in funding.

Childcare services

The government will give AU$1.7 billion to childcare services. It is expected to help 400,000 families save on childcare costs.

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Aged care

According to recent report, Morrison Government may allocate nearly AU$10 billion across four years to aged care. The fund is aimed at training aged-care workers and increasing funding for people with disabilities and mental health.

Health budget

According to health minister Greg Hunt, the government will extend the telehealth services for general practitioners, allied health providers and specialists till December.

Education incentives

The government may release AU$53 million package to support local students to help private education colleges dependent on international students. The government will also pump AU$1.2 billion into the economy with an aim to digitise economy.

Income support extension

 The low and middle-income taxpayers may continue to benefit from income tax breaks as the government wants them to continue spending.

Job Trainer extension

 Meanwhile, Job Trainer program, which was set to expire in September 2020, will receive extension for one more year. The program provides people between 17- and 24-years free access to online courses so that they can boost their skills to find jobs.

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Furthermore, the government recently announced tax breaks for breweries and distilleries. It would add up to AU$250,000 in savings each year.

Meanwhile, the Australian economy is among the very few economies worldwide to have recovered significantly from the negative impact of coronavirus pandemic. The Reserve Bank of Australia (RBA), in its last monetary policy outing, upgrade the gross domestic product (GDP) for both 2021 and 2022.