Highlights
- The tax cuts are applicable from 1st July 2020 and lifts the taxation threshold.
- Pensioners to receive an extra $250 in December 2020 as well as in March 2021.
- A new program called the Job Maker Program will contribute $A200 per week, for one year, towards the hiring of people aged 16-35 who are currently on the JobSeeker Program.
Treasurer Josh Frydenberg says the Government’s economic plan aims to make Australians secure by rebuilding the economy and creating jobs.
The Federal Budget 2020 is investing record amounts in upskilling and reskilling Australians on top of measures already in place.
Chartered Accountant and Tax Specialist Raman Bhalla spoke to SBS Hindi about the tax cuts and other benefits offered in this historic Budget.
The stage two of the legislated tax cuts have been brought forward by two years.
Mr Bhalla says, "Tax cuts will be applicable from 1st July 2020 and the stage two of the legislated tax cuts have been brought forward by two years, lifting the 19 per cent threshold from $A37,000 to $A45,000, and the 32.5 per cent threshold from $A90,000 to $A120,000."
Source: AAP Image/Mick Tsikas
"In order to encourage businesses to hire younger Australians, the government has announced a new program called JobMaker, which will contribute $A200 per week, payable for one year, towards the hiring of people aged 16-35 who are currently on JobSeeker. The payment for those aged 30-35 is $A100 per week," Mr Bhalla said. 
The budget also includes a range of measures designed to encourage established businesses to spend on plant and equipment, invest in research and development, and also hire or retain workers.
Source: Getty Images/Peter Muller
"The Instant Asset Write Off for businesses will be extended to businesses with a turnover of up to $A5 billion and will be further extended until June 2022," says Mr Bhalla.
There is also support for businesses which have been “doing it tough” during the pandemic, with a measure which will enable them to use their losses earlier.
Losses incurred up to June 2022 can be offset against prior profits made in or after the 2018/19 financial year.
According to Mr Bhalla, "The government estimates that the combination of the immediate expensing of capital expenditure and loss carry-back measures will create an additional 50,000 jobs nationally."
There are special measures to help women in STEM and female entrepreneurs.
"Recognising that women have made up the majority of those who lost their jobs during the pandemic, the Budget includes the government’s second Women’s Economic Security Statement, with $A240 million in programs and support," Mr Bhalla said.
There will be a focus on new cadetships and apprenticeships for women in science, technology, engineering and mathematics, job creation and entrepreneurialism.
People in Australia must stay at least 1.5 metres away from others. Check your jurisdiction's restrictions on gathering limits.
If you are experiencing cold or flu symptoms, stay home and arrange a test by calling your doctor or contact the Coronavirus Health Information Hotline on 1800 020 080.
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Disclaimer: We’d like to point out that the information contained in this segment is general and is not specific advice. If you would like accurate information relevant to your situation, you should consult a registered financial planner.
