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Federal Budget 2021: What We Know So Far

As the federal treasurer Josh Frydenberg prepares to hand down his third budget, here's a handy bullet-point list of what you can expect.

  • Scott Morrison and Josh Frydenberg say it will be a "jobs budget" with the aim of boosting the economic recovery, which has already begun after a short-lived recession.
  • Economists expect a smaller budget deficit of around $80 billion for 2021/22 compared to the $108.5 billion estimated in the mid-year budget review.
  • Debt edging towards $1 trillion.
  • JobKeeper expected to cost $12.5 billion less than estimated, due to quicker recovery.
  • High iron ore price will boost revenue coffers.

THE GROUND RULES

  • Maintain a tax-to-GDP ratio at or below 23.9 per cent.
  • Budget repair won't commence until unemployment sub-five per cent.
  • Spending that lifts productivity.
  • Structural reform to boost economic growth.
  • Improving service delivery and funding national security measures.

HIP POCKET

  • Another 12 months of low and middle-income tax offsets.
  • Not expected to bring forward timing of income tax cuts.
  • Changes to superannuation to help women boost their retirement savings.
  • Age dropped to 60 for downsizers seeking to put home sale money into their superannuation.

COVID-19

  • No opening of international border until 2022.

INFRASTRUCTURE

  • $10 billion extra for road and rail infrastructure.
  • Commonwealth to share the cost of 2032 Olympic Games with the Queensland government.

BUSINESS

  • Incentives to attract global talent and business to Australia.
  • $1.2 billion digital economy strategy including tax breaks for businesses, digital cadetship trial and $500 million on government services.
  • Craft brewers and distillers to benefit from excise refunds.
  • Companies to benefit from simplified liquidation and restructuring rules.
  • $4 million for the Australian Communications and Media Authority to run the news media bargaining code involving major tech platforms.
  • Australian Associated Press expected to receive $15 million over two years.

HEALTH/AGED

  • $17.7 billion response to the aged care royal commission.
  • More spending on mental health.
  • Disability spending boosted.
  • Telehealth subsidies extended to the end of 2021.
  • $8 million federal contribution to Canberra compensation scheme for victims of loose-fill asbestos.
  • Country doctors will be paid extra under a $65 million bid to tackle GP shortages in remote and regional Australia.

WOMEN

  • Budget to include women's statement on economic safety and health issues.
  • Domestic violence prevention funding to double to at least $680 million.
  • $354 million over four years for cervical and breast cancer, endometriosis and reproductive health.

HOUSING

  • Five per cent deposit scheme for 10,000 first-home buyers purchasing a new dwelling, with the federal government guaranteeing up to 15 per cent of the loan.
  • Single parents buying their first home will be able to purchase a new dwelling with a two per cent deposit, with the federal government guaranteeing up to 18 per cent of the loan.

(Price caps apply to both categories)

  • First-home buyers will be able to release $50,000 from superannuation to save for a deposit, up from $30,000.

CLIMATE

  • $565 million plan for low emissions technology partnerships.
  • $263 million for carbon capture and storage.
  • $275.5 million to set up regional hydrogen hubs.

WELFARE

  • Expanded childcare subsidies worth $1.7 billion. Families with more than one child under the age of five in child care will have 95 per cent of their out-of-pocket expenses for second and subsequent children paid, from mid-2022. Also removal of $10,560 cap on childcare subsidy.
  • Measures to boost the childcare workforce.
  • JobSeeker payments to fall to $14.7 billion by 2024/25 from $32 billion forecast in December.

RURAL/REGIONAL

  • $371 million biosecurity package to protect agricultural and regional communities.
  • $10 billion reinsurance pool set up by July 2022 to subsidise high premium costs in north Queensland due to numerous disaster events.
  • $600 million for a National Recovery and Resilience Agency to support local communities hit by major disasters.
  • Sixth round of the Building Better Regions Fund for shovel-ready infrastructure projects outside major capitals, worth $250 million.
  • Northern Australia to receive business grants and improvements to digital services.
  • $66 million for Newcastle Airport upgrade.

AAP.