This budget overview is a crucial document of Australian government’s response to the pandemic, demonstrating changes in policies in hope to stimulate the economy. Following are some significant policy changes and budget allocation.
The Australian government has announced its acceleration with their stage 2 tax cut plan, and has injected 17.8 billion dollars into tax relief, which is reflected upon the increased income amount for each tax bracket. Note that there is also a slight adjustment to the fixed-component for each tax bracket, but on average there is a tax relief of $510 up to $2745 annually per person.
Stage 2 tax cut is certainly to decrease the burden for employees and to support the recovery of the economy. Furthermore, stage 3 tax cut which is planned to take place during financial year 2024 will cut taxes further by an additional 30%.
The amount of Permanent Resident (PR) granted is fixed at 160,000 annually, however, the Australian government now prioritizes applicants from following categories:
- Family-stream permanent residence visas (from 47732 to 77300)
- Investment-stream permanent residence visas (from 6862 to 13500)
- Global Talent Independent (GTI) program (from 5000 to 15000)
These are in hope to attract individuals with specific background and knowledge, and to assist economic recovery from the pandemic.
From 10th June to 30th June 2021, first home buyers only require a 5% deposit, where 15% is guaranteed by the National Housing Finance and Investment Corporation (NHFIC). At the same time, the property value eligible for the exemption has been increased from 700k to 950k (for Sydney region).
Australian government has also allocated budgets and implemented a series of policies for Small and medium-sized enterprises (SMEs), attempt to ease damages caused by the pandemic, these include but are not limited to:
- Eligibility for Instant asset write-off has been expanded to cover businesses with aggregate turnover of less than $500m
- Simplifying access to credit for consumers and small business
- Encouraging re-employability, subsidising 50% of wages cost for employing new apprentices.
- Allocation of 1.6 billion in additional home care services
- Along with 3.9 billion in National Disability Insurance Scheme (NDIS)
- 1.5 billion to the manufacture industry, prioritizing in following area of production:
- Mineral processing
- Medical equipments
- Sustainable energy
- 14 billion to infrastructure development, especially traffic construction
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