Economic Recovery Plan for Australia

Media Releases

Date : 05 October 2020

Author: The Hon Josh Frydenberg MP

The Hon Josh Frydenberg MP


6 October 2020


Our Economic Recovery Plan for Australia will create jobs, rebuild our economy and secure Australia’s future.

Since the onset of the COVID-19 pandemic, the Government has provided $257 billion in direct economic support to cushion the blow and strengthen the recovery.

The 2020-21 Budget commits a further $98 billion including, $25 billion in direct COVID-19 response measures and $74 billion in new measures to create jobs.

Under our plan, the economy is forecast to grow by 4¼ per cent next calendar year and unemployment is expected to fall to 6½ per cent by the June quarter 2022.

We will do this by:

JobMaker Hiring Credit

The $4 billion JobMaker Hiring Credit will be payable for up to 12 months for each new job and is available from tomorrow to employers who hire eligible employees aged 16-35.

The Hiring Credit will be paid quarterly in arrears at the rate of $200 per week for those aged between 16-29, and $100 per week for those aged between 30-35.  Eligible employees are required to work a minimum of 20 hours per week.

To be eligible, employers will need to demonstrate an increase in overall employee headcount and payroll for each additional new position created.

Treasury estimates that this will support around 450,000 jobs for young people.

Skills and training

Our JobMaker Plan includes the establishment of the $1 billion JobTrainer Fund to create up to 340,000 free or low cost training places for school leavers and job seekers.

We are building on our existing support for apprenticeships by committing an additional $1.2 billion to create 100,000 new apprenticeships and traineeships, with a 50 per cent wage subsidy for businesses who employ them.

To help more Australians get a job, in this Budget we are also funding 50,000 new higher education short courses and 12,000 new Commonwealth supported places for higher education in 2021.

Tax relief

The Budget provides an additional $17.8 billion in personal income tax relief for more than 11 million hard-working Australians to support the economic recovery, including an additional $12.5 billion over the next 12 months.

The Government is supporting economic activity by allowing over 99 per cent of businesses employing 11.5 million Australians to deduct the full cost of eligible depreciable assets of any value in the year they are installed.  Small, medium and larger businesses with a turnover of up to $5 billion will be eligible.

Complementing this measure, the Government will also allow companies with turnover up to $5 billion to offset losses against previous profits on which tax has been paid to generate a refund.  Providing much needed cashflow support, this measure will support investment and help keep Australians in work.

Building our capability

The Budget invests $1.5 billion in our Modern Manufacturing Strategy – ensuring we have an internationally competitive and resilient manufacturing sector, and in the process create more high value jobs.

We are also helping to secure our future by providing:


The Government’s infrastructure investments are supporting 100,000 jobs on worksites across the country.

The Budget expands our record 10 year infrastructure pipeline to $110 billion.

The measures announced in this Budget, together with what we have announced since the start of the crisis, will see $14 billion in new and accelerated infrastructure projects support a further 40,000 jobs.

The Budget will fund major projects across each state:

The Budget also includes a $2 billion investment in road safety upgrades to save lives.

Funding for these shovel ready projects will be provided on a use it or lose it basis.

If a State drags its feet, another State will get the money.

The Government is also expanding the Local Roads and Community Infrastructure program.

Investing an additional $1 billion to support local councils to immediately upgrade local roads, footpaths and street lighting to create jobs now.

Australians can be confident that the Government’s Economic Recovery Plan for Australia will create jobs, rebuild our economy and secure Australia’s future.


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