Federal budget breakdown 2020: Everything you need to know

EW
By Elliot Williams
Updated April 14 2021 - 1:40pm, first published October 6 2020 - 8:38am
Everything you need to know about the budget - in five minutes or less. Picture: Shutterstock

Income tax cuts

  • Stage two of the government's tax cuts has been brought forward and will be backdated to July, delivering a tax cut to more than 11 million Australians. The changes will bring tax relief of at least $2000 to 7 million people.
  • By lifting the 19 per cent threshold to $45,000 and the 32.5 per cent threshold to $120,000, low- to middle-income earners will be up to $2745 better off.

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The economy

  • Australia's predicted debt and deficit have ballooned since the July economic update. The nation's gross debt will hit a peak of $1.1 trillion in June 2024, or 51 per cent of GDP.
  • The deficit is expected to peak at $213 billion this year before reducing rapidly thereafter.
  • Unemployment is not expected to peak as high as previously estimated. It is now slated to hit 8 per cent in the December quarter.

Health

  • Australians accessing mental health services will get a boost with the number of Medicare supported appointments with a psychologist doubling from 10 to 20.
  • Telehealth services will receive $112 million for people to access medical appointments remotely.
  • States and territories stand to receive a further $1.1 billion for hospitals as part of the COVID-19 response along with $750 million for testing.
  • The government has committed $1.7 billion towards a COVID-19 vaccine.

Education

  • The government extended its previously announced $1 billion JobTrainer program with 100,000 new apprenticeships and traineeships costing an additional $1.2 billion.
  • Businesses that employ these apprentices or trainees will be offered a 50 per cent wage subsidy by the government.
  • The decimated university sector has been offered a $1 billion lifeline in funding for new research.
  • There will also be 12,000 new Commonwealth supported places in higher education in 2021.

Infrastructure

  • Announcements of a $7.5 billion investment in transport infrastructure and $2 billion in road safety upgrades bring the government's infrastructure commitment to more than $14 billion for new and accelerated projects since the pandemic began.
  • Roads and railways will be the focus of upgrades, with major projects slated across all states and territories.
  • The government expects 40,000 jobs to be supported by increasing the Commonwealth's 10-year infrastructure pipeline.

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Elliot Williams

Canberra Times journalist

I've been a reporter with The Canberra Times since 2017 and as a proud Canberran it's been an honour to tell the stories of my hometown. I'm currently reporting on the public service and examining the ins and outs of a very important part of our city. Email: elliot.williams@canberratimes.com.au