Highlights
- With the pandemic having a big impact on migration, influx numbers become dependent on a vaccine.
- It's a good time to buy a home for those capable of doing so.
- JobMaker sees monetary incentives being given to businesses seeking to employ workers 35-years old and below.
Financial expert Maria Papa gives her take on how the key issues tackled during the 2020-2021 federal budget can affect you when it comes to your capability to work, earn and spend.
Migration
According to Maria, the influx of skilled migrants into Australia is a major component of why the economy has grown as much as it has the last 10-20 years.
"These skilled migrants are productive citizens who are able to work and contribute to the economy," she shares.
"These skilled migrants are productive citizens who are able to work and contribute to the economy," Maria shares. Source: Flickr
"International students as well have been major contributors to our economy. The slump in the numbers has greatly affected schools and boarding houses. This is expected to continue in the next one to two years."
Jazmine Flores, owner of auto shop Talyer AU, shares she has seen first-hand how international students and temporary visa holders have faired during the crisis.
"We have two branches and almost half of our employees are international students studying automotive. We want to be able to give them industry experience; however we've seen them struggle due to the lack of support," Jazmine says.
"I was hoping under the new federal budget, there would be support for international students and businesses employing them, but there are none."
"We have two branches and almost half of our employees are international students studying automotive." Source: Jazmine Flores
While support seems to be lacking for international students and temporary visa holders, Maria says that migration and assistance will more likely improve once a vaccine is discovered and unemployment rates decrease.
“The goal for the economy for the next 4 years is to bring down unemployment to 5.5% percent. If this happens, migration will pick up in the next 2-3 years."
First home owners
It's a great time to buy your first home. Source: Getty images
"The housing market has been resilient lately. If you have the 5% deposit required for a first property, the government will provide you with a 15% guarantee. So basically, you only need 5% right now to buy your dream home."
JobMaker Hiring Credit
After the government's JobSeeker and JobKeeper programs, it is now introducing businesses to the JobMaker Hiring Credit.
With the said scheme, businesses who employ workers aged 16 to 29 will be receiving $200 a week, while those that employ workers aged 20 to 35 get $100 weekly.
“There's a reason for the government to focus on the young people. The future is dependent on them. There needs to be a focus on them so that they are able to gain skills that will help them make a living for the rest of their lives."
“There's a reason for the government to focus on the young people. The future is dependent on them." Source: Getty Image
Jazmine takes the program as good news, sharing, "This is excellent support for our local apprentices. This incentivises us to look for local talents so we are also able to get support in order to sustain the business."
Spend
Maria shares that those who are in the fortunate position of being employed can help sustain and further the economy by spending.
“If you get a tax refund or tax relief, try to support your local community. Spend and help local businesses survive.
Spend and help local businesses survive. Source: Getty images
"Also, because of the current low-interest environment, start thinking about paying off your mortgage as much as you can. It's a great time to bring your loans as much as you can. Whatever surplus you do have after paying your mortgage, you can use to invest in other properties."
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