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Securing Australia’s Recovery

Media Releases

Date : 11 May 2021

Author: The Hon Josh Frydenberg MP

The Hon Josh Frydenberg MP

Treasurer

MEDIA RELEASE

11 May 2021

SECURING AUSTRALIA’S RECOVERY

Our plan to secure Australia’s recovery will create more jobs, rebuild our economy and set the country up for the future.

Since the onset of the COVID-19 pandemic, the Morrison Government has provided $291 billion in direct economic support to keep businesses in business and Australians in jobs.

Our economic recovery has beaten even the most optimistic of our expectations with more people in work than ever before. JobKeeper has done its job.

Under our plan, the unemployment rate is forecast to fall below 5 per cent by late 2022 while the economy is forecast to grow by 5¼ per cent in 2021 and 2¾ per cent in 2022 having outperformed every major advanced economy in 2020.

As part of the 2021-22 Budget the Government is:

Tax relief

To secure Australia’s recovery the budget provides an additional tax cut to more than 10 million low and middle income earners.

It will see low and middle income earners benefit by up to $1,080 for individuals or $2,160 for couples.

This is more money to spend in local businesses, giving them the confidence to take on an extra worker, offer an extra shift or buy a new piece of equipment.

To support further job creation the Government will extend temporary full expensing and the loss carry back measure announced in last year’s budget for another year.

This will allow more than 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 until 30 June 2023.

It will also allow companies with turnover up to $5 billion to offset losses for the 2019-20, 2020-21, 2021-22 and now 2022-23 income years against previously taxed profits from 2018-19 or subsequent years to generate a refund.

Skills and training

The Government is doubling its commitment to the JobTrainer Fund to support a further 163,000 new training places to upskill job seekers and meet skills shortages.

The Budget also funds more than 170,000 new apprenticeships and traineeships, 5,000 higher education short courses and 2,700 places in indigenous girls academies to help them finish school and get a job.

We will also accelerate digitals skills training for job seekers with low levels of reading, writing, maths and computer skills.

Women will also benefit from STEM scholarships and programs to help them to break into non‑traditional trades.

Infrastructure

The Government is building the infrastructure our economy needs for the future, with a record 10-year $110 billion infrastructure pipeline, which is already supporting 100,000 jobs across the country.

The 2021-22 Budget goes further with $15.2 billion in additional infrastructure commitments, which will support a further 30,000 jobs across the lives of those projects, including:

These commitments also include $1 billion for road safety upgrades and a further $1 billion for community infrastructure.

Building our capability

In last year’s Budget the Government invested $1.5 billion in a Modern Manufacturing Strategy to ensure our international competitiveness and to create more jobs.

We also backed in our manufacturing plan with an additional $2 billion in R&D tax incentives.

The 2021-22 Budget goes further with a new ‘patent box’ starting on 1 July 2022.

Under the patent box, income earned from new patents that have been developed in Australia will be taxed at a concessional rate of 17 per cent.

The patent box will apply to the medical and biotech sectors and we will consult on expanding it to the clean energy sector.

The comprehensive manufacturing plan will help Australian businesses to develop the next bionic ear or cervical cancer vaccine.

The 2021-22 Budget also invests in measures to help small businesses and farmers expand and diversify their export markets with an additional $87.7 million in funding for the Agri-Business Expansion Initiative.

To ensure our industries remain competitive, the 2021-22 Budget also makes critical investments to deliver more affordable and reliable energy.

This includes helping unlock Australia’s vast gas reserves in the North Bowen and Galilee Basins, and investing in hydrogen-ready gas plants.

To further shore up our fuel security the Budget helps local refineries to keep operating in Australia.

Child care

To cut the cost of living for around a quarter of a million families and to help boost workforce participation, the Government is making an additional $1.7 billion investment in child care.

The investment will add up to 300,000 hours of work per week which would allow the equivalent of around 40,000 individuals to work an extra day per week and boost the level of GDP by up to $1.5 billion per year.

The changes target low and middle income earners with around half the families set to benefit having a household income under $130,000.

Importantly it lowers the disincentive to take on an additional day or two of work for many families.

The Government will:

For those families with more than one child aged five and under in child care, the level of subsidy received will increase by 30 percentage points to a maximum subsidy of 95 per cent for their second and subsequent children.

This comprehensive economic plan creates jobs and secures Australia’s recovery.

Ends

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