Federal Budget: what you need to know

Federal Treasurer Josh Frydenberg handed down the Federal Budget last night. Here’s what you need to know.

The budget forecasts the international border will not open until the middle of 2022, the entire population will receive first round of vaccinations by the end of this year and there will not be extended lockdowns in the states and territories.

It forecasts a deficit of $161 billion this year, which is more than $50 billion less than forecast.

It also forecasts a decade of deficits and debt that is set to peak about $1 trillion in 2025.

Treasurer Josh Frydenberg said it was a budget focused on securing Australia’s economic recovery, creating jobs and building for the future.

It also aims to reduce unemployment, embrace opportunities in the digital economy and address shortcomings highlighted in the Aged Care Royal Commission.

Mr Frydenberg said the Australian economy was soaring back to life after the COVID-19-sparked recession and it was in a better place than almost every other country in the world.

Key projects funded in the Budget include $32.75 to upgrade Youngs Crossing Rd at Joyner and $10 million for the upgrade of a section of Bribie Island Rd.

Budget breakdown

• $7.8 billion in tax cuts for low to middle income earners - $1080 for individuals and $2160 for couples
• Asset write-off extension for businesses to invest in equipment
• $1.1 billion women’s safety package
• $15.2 billion in infrastructure projects
• More than $16 billion in tax cuts to small and medium businesses by 2023-24 with about $1.5 billion flowing in 2019‑20. This includes reducing the tax rate for small and medium companies, from 30 per cent in 2014‑15 to 25 per cent from 1 July 2021
• $1.2 billion to implement a Digital Economy Strategy
• $4.6 billion to help vulnerable unemployed people into work
• $2.7 billion to extend the Boosting Apprenticeship Commencements program
• $1.7 billion to further reduce the cost of child care for low to middle income families
• $15 billion for the Bruce Highway
• $1 billion in local road infrastructure projects
• $2.3 billion to reform mental health and suicide prevention system.
• $13.2 billion for the NDIS
• $17.7 billion over five years to reform the aged care system and increase the number of home care packages by 80,000

Shadow Treasurer Jim Chalmers said the budget would deliver little for a huge cost, and while jobs had to be the priority at the moment, budget repair would need to be addressed at some point.

He also accused the Federal Government of crafting a budget for political purposes ahead of the next Federal Election.