What a difference a year makes. Okay, technically it’s been 18 months since the last Federal budget, but let’s not split hairs. The contrast between Treasurer Josh Frydenberg’s “Back in Black” budget of April 2019 and last night’s “Road to Recovery” version could not have been greater.
Of course the reason the Budget was delayed six months was due to the absolute pandemonium that befell Australia in March this year, just as Treasury would normally have been putting the finishing touches on another budgetary process.
Instead it was all hands on deck, as COVID-19 effectively brought Australia’s economy to a standstill. The Government’s response, which we outlined back in March, was swift and significant, with a range of measures that no doubt averted financial disaster for many.
As this goes to print, over three million Australians remain on JobKeeper, the wage subsidy programme that has allowed many to retain a connection to employment, however tenuous that might currently be. Some one million others aren’t as fortunate, now relying on JobSeeker and the Coronavirus supplement, the key social security measures directed at jobless individuals.
With the JobKeeper rate recently reduced, and its end scheduled for early next year, this Budget’s focus is clearly on getting Australians back into jobs.
To do that, the jobs will first have to return. This Budget contains a range of measures designed to encourage businesses to hire new employees. It also contains individual tax cuts that the government hopes will be spent rather than saved.
To find out about which bits of Budget 2020/21 will impact you, read on…Continue reading “Budget 2020/21 – Recovery Mode”