Treasurer Josh Frydenberg unveiled the full picture of the Morrison government’s 2021 budget tonight, following a series of headline announcements over recent weeks.
Among the key details of a Coalition government that previously sought to hammer the Labor opposition over its deficit budgets during the GFC a decade earlier was the fact that the budget deficit for the current and upcoming financial years will top $267 billion – $161 billion of that figure from this financial year’s coronavirus-battered year.
And as the government prepares to head to an election next year, the deficit only falls to $106 billion for FY2022.
Craig James, Chief Economist at CBA’s trading platform CommSec, has put together a list of the key numbers from the 2021 federal budget.
Here they are:
- Budget deficit of $161 billion (7.8% of GDP) expected this year (2020/21)
- Budget deficit of $106.6 billion (5% of GDP) expected next year (2021/22)
- $7.8 billion extension of the Low and Middle Income Tax Offset
- $20.7 billion in tax relief to extend temporary full expensing and temporary loss carry-back for businesses
- $17.7 billion for aged care over four years
- $15.2 billion for infrastructure projects to be spent over the next decade
- $13.2 billion over four years for the National Disability Insurance Scheme (NDIS)
- $3.4 billion for women’s safety measures
- $2.3 billion for improved and expanded mental health care and suicide prevention
- $2 billion over four years for early childhood education
- $1.9 billion for the Covid-19 vaccination rollout
- $1.9 billion over the decade to strengthen our national security and law enforcement capabilities
- $1.7 billion for expanding child care subsidy
- $1.5 billion to extend a range of health responses
- $1.5 billion Modern Manufacturing Strategy
- Employers will be given an extra $1.5 billion to hire 100,000 apprentices and trainees in the next year
- $1.2 billion in support for aviation and tourism
- Extra $1.2 billion in Digital Economy Strategy
- $1.2 billion over 10 years to encourage investment in regional hydrogen hubs
- $878.7 million to support access to affordable medicines through the Pharmaceutical Benefits Scheme (PBS)
- $850.4 million to help farmers reach their goal of increasing farm gate output
- $780 million to extend the HomeBuilder construction commencement period and the New Home Guarantee
- $747 million to upgrade four key military training areas
- $385.5 million for biosecurity systems
- $480 million in new funding for the environment
- $464.7 million to bolster domestic detention capabilities
- $300 million to support Australia’s creative and entertainment sector
- $696 million over the next 4 years for the Agriculture 2030 initiative
- $225 million in excise tax relief for small-scale alcohol brewers and distillers
- A new SME Recovery Loan Scheme building on the SME Guarantee Scheme
- Family Home Guarantee for eligible single parents
- $506 million to extend the JobTrainer fund
- Additional $460.4 million for veterans
- $1.2 billion to establish Australia at the forefront of low emissions technology innovation
- $265 million for the Building Better Regions Fund
- People over 60 years who sell their home and downsize will be able to put $300,000 into their superannuation
Trending
Daily startup news and insights, delivered to your inbox.