2020 IS A YEAR LIKE NO OTHER.
THE HISTORIC FEDERAL BUDGET 2020-21 HANDED DOWN BY THE TREASURER DELIVERS A SET OF MEASURES FOCUSED ON BOOSTING THE ECONOMY AND KICKSTART THE SLOW CLIMB BACK TO SURPLUS.
On 6th October 2020, Treasurer Josh Frydenberg handed down one of the most anticipated Federal Budgets in recent history.
Traditionally delivered in May, the Federal Budget was delayed by six-months to allow Treasury more time to assess the economic impact caused by the COVID-19 pandemic.
2020 is an extraordinary year.
The bushfires that ravaged regional Australia earlier in the year and the COVID-19 pandemic has had devastating impact on the Australian economy. Australia is in its first recession in almost 30 years.
Budget 2020-21 provides for a long, debt-ridden road to recovery.
The scale of the numbers is staggering – a budget deficit blow out of $213.7 billion, net debt peaking at $966 billion (or around 44% of GDP) by June 2024 and forecast of a decade or more before the budget returns to surplus.
Describing the path to recovery as “monumental”, Mr Frydenberg said personal income tax cuts, incentives for businesses and infrastructure spending will create jobs and encourage consumer spending.
Highlights of the key measures delivered in this year’s Budget are:
- 7 million individuals are expected to benefit from tax relief in 2020-21
- Help for vulnerable Australians with additional cash handouts for pensioners and other social security recipients
- Tax incentives for businesses with a supercharged instant asset write off, the temporary introduction of loss carry back and expansion of tax concessions
- Measures to encourage job creation through the JobMaker Plan
You can find out more about the Government’s economic recovery plans here.
If you would like more information on how the Budget will impact you or your business, please speak to your Trident account manager or contact us on 03 9899 4036.