Covid-19 has had a global impact on the economy, community and health system. In the face of this crisis, the Australian Government has acted quickly to address the pandemic’s consequences. As a result, Australia’s Covid-19 response has achieved some of the best health and economic outcomes in the world. However, its impacts will be felt in the Australian community for years to come.
Thus far the Government’s economic response has been designed to support Australian households and businesses through Jobkeeper payments, boosting cash flow for employers and supporting Australians in need with the Coronavirus Supplement and $750 payments. With the announcement of the 2021-2022 Federal Budget the Government’s response is not transitioning to ensure the Australian economy recovers in a strong manner by targeting additional temporary support measures to boost household incomes.
Some of the highlights proposed within the Federal Budget this year that will work to support and rebuild the economy are:
- Lower taxes for hard-working Australians: Under the Government’s changes, individuals will benefit from bringing forward the tax cuts in Stage 2 of its Plan, as well as a one-off additional benefit from the low- and middle-income tax offset in 2020-21.
- Supporting housing construction: As part of the economic recovery plan to create jobs, an additional 10,000 home buyers will be able to purchase a new home sooner under the extension to the First Home Loan Deposit scheme. The additional 10,000 places will be provided in 2020-21 to support the purchase of a new home or a newly built home. This will also allow for new jobs for construction workers.
- Infrastructure Investment: Since the beginning of the pandemic the Government had invested an additional $14 billion in new and accelerated infrastructure projects for the next four years. These projects will support an additional 40,000 jobs in construction.
- Supporting Businesses & Investment: To increase business incentives the Government will be providing a tax incentive which will be available for 3.5 million businesses (to over 99% of businesses) that employ around 11.5 million workers.
- Building a Digital Australia: The Government’s Digital Business Plan proposes an additional $4.5 billion investment in NBN Co to bring ultra-fast broadband to families. Furthermore, it hopes to support even greater adoption of new technologies.
- Investing in education, skills & apprenticeships: The Government plans to put its JobMaker Plan on high priority and ensure that Australians have the right skills for jobs of the future.
Within this plan they propose:
- JobTrainer – growing Australia’s workforce
- New apprenticeships to help the recovery
- Support for job seekers
- More job-ready graduates
- Short courses to reskill and upskill Australians
Australians can look forward to the Government supporting them and building jobs across many different industries within this period with their new schemes in place.