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Home  »  Resources  »  Federal_Budget_2020-21  »  Non-Tax Aspects

Non-Tax Aspects


Housing
Infrastructure
Digital and connectivity
Employment and training
Regional recovery and tourism
Manufacturing
Environment
Health and families
Exemptions for IMF and World Bank Group mission
More funding to fight organised crime in the tax and super system
Updates to listed deductible gift recipients

Housing

First home buyers
An additional 10,000 first home buyers will be able to purchase a new home sooner under the extension to the First Home Loan Deposit Scheme. The additional 10,000 places will be provided in 2020-21. This will allow first home buyers to secure a loan to build a new home or purchase a newly built dwelling with a deposit of as little as 5%, with the Government guaranteeing up to 15% of a loan.

Boost for housing supply
The Government will increase its guarantee of the National Housing Finance and Investment Corporation (NHFIC) by $1 billion, enabling NHFIC to increase its bond issuance into the wholesale capital market.


Infrastructure

A commitment to invest an additional $14 billion in new and accelerated infrastructure projects over the next four years, which includes projects in every state and territory, as well as the Melbourne to Brisbane Inland Rail and Western Sydney International (Nancy-Bird Walton) Airport.

NSW projects include:

  • $5.3 billion Sydney Metro–Western Sydney Airport
  • $4 billion Pacific Highway–Woolgoolga to Ballina
  • $603 million New England Highway–Singleton Bypass and Bolivia Hill Upgrade (new)
Queensland projects include:
  • $10 billion Bruce Highway Upgrade Program
  • $800 million Gateway Motorway – Bracken Ridge to Pine River
  • $750 million Coomera Connector Stage 1 (new)
Victoria projects include:
  • $684 million Monash Freeway Upgrade
  • $528 million Shepparton Line Upgrade and Warrnambool Rail Upgrade Stage 2 (new)
  • $500 million M80 Ring Road Upgrade
ACT projects include:
  • $115 million Monaro Highway Upgrade, including new funding of $15.3 million
  • $87.5 million Molonglo River Bridge (new)
Tasmania projects include:
  • $150 million Hobart to Sorell Corridor–Midway and Sorell Causeways (new)
  • $120 million for Tranches 1 and 2 of the Tasmanian Freight Rail Revitalisation
South Australia projects include:
  • $4.5 billion North-South Corridor
  • $200 million Hahndorf Township Improvements and Access Upgrade (new)
Western Australia projects include:
  • $2.3 billion METRONET
  • $275.8 million Great Northern Highway–Muchea to Wubin Upgrade
  • $75 million Canning Bridge Bus Interchange (new)
Northern Territory projects include:
  • $180 million Central Arnhem Road Upgrade
  • $120 million Carpentaria Highway Upgrade (new)

 

Digital and connectivity

An additional $4.5 billion investment in NBN Co will bring ultra-fast broadband to more homes, with extra funding of $29.2 million to also accelerate the rollout of the 5G network. Reforms will make permanent the measures enabling companies to hold virtual Annual General Meetings to engage with their shareholders and e-signatures.

The Government will provide $24.7 million to help small business operators use technology, including providing an additional 10,000 places for the Australian Small Business Advisory Service – Digital Solutions program.

An amount of $30.3 million will be provided to improve mobile and broadband services in regional areas, through the extension of the Regional Connectivity Program.

The Government will provide an additional $201.5 million to deliver the 2020 Cyber Security Strategy. As part of the Strategy, the Government will invest $37.7 million in growing Australia’s cybersecurity skills and another $128.1 million to counter cyber criminals.


Employment and training

JobMaker Hiring Credit
A new JobMaker Hiring Credit scheme will be available to employers from 7 October 2020 for each new job they create over the next 12 months for which they hire an eligible young person. For each eligible employee, employers will receive for up to 12 months:

  • $200 a week if they hire an eligible young person aged 16 to 29 years; or
  • $100 a week if they hire an eligible young person aged 30 to 35 years.
Eligible young job seekers will have received JobSeeker Payment, Youth Allowance (other) or Parenting Payment for at least one of the previous three months at the time of hiring. Employers must demonstrate that they have increased their overall employment to receive this payment for up to 12 months for each position created. To claim the JobMaker Hiring Credit, employers need to report their employees’ payroll information to the ATO through Single Touch Payroll.

JobTrainer
The $1 billion JobTrainer Fund matches funding between the Commonwealth and state and territory governments. The fund will support up to 340,700 additional free or low-fee training places in areas of genuine need. Adding to the $2.8 billion Supporting Apprentices and Trainees Wage Subsidy, which supports existing apprentices and trainees through to 31 March 2021, the Government is adding a further $1.2 billion in a Boosting Apprenticeships Wage Subsidy, which will support up to 100,000 new apprentices and trainees by paying a 50% wage subsidy, up to a cap of $7,000 per quarter, for commencing apprentices and trainees at businesses of all sizes, in all industries. But it runs out 30 September 2021.

 

Regional recovery and tourism

The Government will invest over $250 million for a Regional Tourism Recovery Package. Regional communities will see $200 million in grants through the Building Better Regions Fund, with $100 million of the fund earmarked for tourism-related infrastructure projects that will boost regional tourism. Tourism regions particularly hard hit by the international border closures, like Tropical North Queensland and Tasmania, will benefit from $51 million over two years to attract domestic visitors. Also $100 million over two years will go towards Regional Recovery Partnerships to coordinate investments with other levels of government and support recovery, diversification and growth in 10 regions across Australia such as the Snowy Mountains, Kangaroo Island, and the Hunter.

A commitment of $50.3 million will go towards expanding the Rural Health Multidisciplinary Training Program and investing in increased training and infrastructure for the rural health workforce. Capability on the ground will also be improved through $5.7 million in new support for Building Resilient Regional leaders.

To make sure primary producers can get their high-quality perishable products into overseas markets while flights remain limited, the Government is providingan additional $317 million to the International Freight Assistance Mechanism.

The help farmers, $156 millionover four years will help them recover from the current drought and prepare for future droughts. This includes $19.6 million to extend the National Drought and North Queensland Flood Response and Recovery Agency for another year. It will also provide a further $2 billion in drought concessional loans.

The Government is also providing targeted support to the fishing and forestry industries by waiving $10 million of fees on Australia’s fishing industry, and $25 million to haul salvaged logs to timber mills that survived the bushfires.

The Government will provide $17.4 million to expand the Relocation Assistance to Take Up a Job Program, including for those who temporarily relocate to take up agriculture work.


Manufacturing

The Modern Manufacturing Strategy will see $1.3 billion go to the Modern Manufacturing Initiative. With this funding, the Government will co-invest with leading manufacturers to help them achieve scale, commercialise world-leading research, and connect to international markets. Another $107 million is to be directed at a Supply Chain Resilience Initiative to identify and address supply chain vulnerabilities.

Small and medium manufacturers can access $52.8 million in a second round of the Manufacturing Modernisation Fund. This will help manufacturers scale-up, invest in new technologies, create and maintain jobs and upskill their workers. A further $50 million is being provided to Industry Growth Centres to deliver immediate support to manufacturing priority industries.


Environment

The Government is banning the export of waste plastic, paper, tyres and glass. It will invest $249.6 million over four years to modernise recycling infrastructure, reduce waste and recycle more. This includes a $190 million Recycling Modernisation Fund, which will invest in new infrastructure to sort and recycle plastic, paper, tyres and glass waste. Another $47.4 million will be dedicated to protect marine health.


Health and families

The Government has invested $3.2 billion in personal protective equipment (PPE) and it is also providing $112 million for the continuation of Medicare-rebated telehealth services for GP, allied health and specialist consultations to ensure ongoing access to essential health services.

It is providing an additional $746.3 million to support senior Australians in aged care, workers and providers to respond to the COVID-19 pandemic. This includes $245 million for a COVID-19 Support Payment to assist providers with additional costs and $205.1 million for the Workforce Retention Bonus Payment for frontline aged care workers.

Further support for older Australians who wish to stay at home for longer will be provided through $1.6 billion for an additional 23,000 home care packages across all package levels.

Additional funding will provide access to an extra 10 Medicare-subsidised psychological therapy sessions for people with a mental health care plan.

Funding for the National Disability Insurance Scheme (NDIS) has been guaranteed, as the Government is providing a further $3.9 billion to the NDIS.

Funding of $102 million over four years from 2020-21 for veteran mental health and well-being initiatives includes:

  • $94.3 million to improve mental health outcomes and ensure high-quality care for our older veterans and their families by increasing fees paid to mental health, social work and community nursing providers
  • $7.4 million to expand Open Arms counselling services and the Coordinated Veterans’ Care program.
The Government will invest $453 million to extend the National Partnership Agreement on Universal Access to Early Childhood Education until the end of 2021. In 2020-21, it will pay approximately $9 billion in the means-tested Child Care Subsidy payments.

 

Exemptions for IMF and World Bank Group mission

The Government will clarify privileges and immunities, including income tax exemptions, available to Australian individuals performing short term missions on behalf of the International Monetary Fund and three institutions of the World Bank Group.

The measure will apply retrospectively from 1 July 2017.

This measure will clarify that Australian short term experts are entitled to an exemption from income tax for their relevant income from the organisations. This aligns Australia’s domestic legislative framework with its international obligations and provides certainty for taxpayers.

Source: Budget paper No 2, p 22

 

More funding to fight organised crime in the tax and super system

The Government will provide $15.1 million to the ATO to target serious and organised crime in the tax and superannuation systems. This extends the 2017- 18 Budget measure “Additional funding for addressing serious and organised crime in the tax system” by a further two years to 30 June 2023.

Source: Budget Paper No 2, p13

Updates to listed deductible gift recipients

Since the July 2020 Economic and Fiscal Update, a number of organisations have received new status as deductible gift recipients (DGRs) or had their DGR status extended:

Organisations newly listed as DGRs

 Royal Agricultural Society Foundation Limited   From 1 July 2020
 Judith Neilson Institute for Journalism and Ideas  From 1 July 2020
 The Andy Thomas Space Foundation  From 1 July 2020
 The Royal Humane Society of New South Wales  From 1 July 2020
 Youthsafe  From 1 July 2020
 Alliance for Journalists’ Freedom  From 1 July 2020
 The Great Synagogue Foundation Trust Fund  From 1 July 2020to 30 June 2025

Organisations whose DGR status has been extended

Sydney Chevra Kadisha   1 January 2021 to 30 June 2022
Centre for Entrepreneurial Research and Innovation Limited.     From 31 December 2021 onwards

The specific listing of China Matters Limited from 1 July 2019 to 30 June 2024 will not proceed.

Source: Budget Paper No 2, p 22 ;


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    • COVID-19 Essentials
    • Cash Flow Boost
    • Foreign Investment
    • Instant Asset Write Off
    • JobKeeper Package
    • Quick Tax Videos
    • Stimulus Package - Overview
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  • Newsroom


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