In response to COVID-19 last year, Australia kept infections, hospitalisations and deaths low in comparison to most other countries.
During this time, the Government had to take important measures during the first recession in almost 30 years.
The economy has greatly recovered since the COVID-19 recession and is set to return to pre-pandemic levels soon.
This Year’s Budget - The Outline
According to the 2021 Budget, it aims to take the next steps in securing Australia’s economic recovery by creating more jobs, guaranteeing essential services and building a country that is more resilient and secure.
This will be achieved by:
- Personal income tax cuts
- Business tax incentives
- New apprenticeship opportunities and training places
- Increase in infrastructure
- Funding for schools, hospitals, aged care, mental health and the National Disability Insurance Scheme (NDIS)
Here are the key takeaways from the Budget:
More jobs to build the economy
- $7.8 billion is being placed into tax cuts. For low and middle-income earners, there will be tax cuts worth up to $1,080 for individuals or $2,160 for dual-income couples.
- Prolonging temporary full expensing and temporary loss carry-back to provide an extra $20.7 billion in tax relief to help business investments and to create jobs.
- $15.2 billion to fund infrastructure projects over the next ten years
- Supporting sectors that have been most detrimentally affected by COVID-19, including $1.2 billion for aviation and tourism.
Promising essential services
- Extending the COVID-19 response and continuing to invest in the COVID-19 vaccination program
- Supporting people with disability by funding 100 percent of NDIS with an additional $13.2 billion
- Supporting older Australians with $17.7 billion funded into aged care reforms
- $2.3 billion for improved and expanded mental health care and suicide prevention.
- Investing in preschools
A massive focus on women
- Bettering the accessibility and quality of women’s health services, with $47.4 million going towards screening for mental health issues among pregnant women and new mothers
- Taking measures to address violence against women and children
- Improving women’s health services
- Making women’s economic security stronger by improving the affordability of child care, and supporting employment and women’s financial security
Making Australia more resilient and secure
- Investing in national security and law enforcement capabilities to keep Australia safe
- Supporting the agriculture industry increase farm gate output to $100 billion by the year 2030
- Maintaining energy prices, keeping it secure, affordable and reliable
- Strengthening medical and biotech innovations in Australia
- Creating opportunities and unlocking the potential of Australia’s regions
- Helping communities that are affected by natural disaster
For more information on how the Budget may benefit you, contact us at Wagtail Wealth today.
IMPORTANT NOTE: This information is general advice only and does not take into account your personal circumstances, goals and objectives. Therefore, you should consider its appropriateness for your circumstances before acting on this information.