This situation is quite tough for a treasurer to deliver the budget for a country. As the country’s economy is in the worst-hit state in the last 30 years and it is not fixed when this pandemic is going to end.
But the treasurer Josh Frydenberg has unveiled the budget for this year and he has a vision. According to his vision, this situation can be corrected by creating more and more jobs and that’s what he has tried to do through this budget.
In this blog, we are going to talk about those who are most benefitted by this budget alongside the ones who have not gained much. At first, take a look at the winners:
Those who have a lot to gain from this budget:
- Pension holders:
- All those who are eligible for pension or those who are aged, family welfare recipients, disable, will now receive $500. This money is supposed to be paid in two installments in December 2020, and March 2021.
- Workers of the manufacturing industries:
- Federal government will provide an additional $1.5 billion to six major manufacturing sectors in the next four years. Those six sectors are Critical minerals processing, defense industries, medical products, beverage and food manufacturing, clean energy and recycling, and resource technologies.
- People who run small businesses:
- This budget has provided $112 million to reduce benefits tax. This move will support the small and medium scale industries. It is one of the most significant steps taken in this budget because as there are over 1.5 million Australians who run this kind of business.
- People who own big businesses:
- All the business that has a turnover of up to $5 billion can reduce the total cost of their eligible depreciable assets. This step is intended to boost investment. Such businesses can also claim the taxes that they paid to compensate for the losses suffered due to Coronavirus. This rule will be eligible for the year 2019-2020, 2020-2021, 2021-2022.
- First home buyers:
- First home loan deposit scheme has already provided a home for 10,000 people where they have to deposit only 5% of the total money and the government will guarantee the other 15% of the loan.
- This budget will allow another 10,000 first home buyers the same economic facility.
- An amount of $17.8 billion has been provided to cut the taxes. This move was scheduled for July 2021 but due to the pandemic, it will come into effect from this year onwards.
- As the plan has been backdated to July 2020, all those who earn $120,000 or more than that will get $2745 back and those who earn $80,000 will get $2160 while those who earn $40,000 will be entitled $1060.
Take a look at those who have not gained anything from this budget:
There are several portions of the society that have been left untouched by this budget.
- Unemployed Australians who are 35 years old or more (particularly the women):
- The majority of the workers who have lost their jobs in this pandemic were women. The new schemes that provide opportunities for the jobless people are only for those who are 35 or younger than 35 years. So, if you don’t come under this limit, you have got no assistance from this scheme.
- Those who are eligible for JobSeeker payments:
- As per the statement of the Finance Minister, this issue will be addressed later this year. As the primary focus is on making enough arrangements so that the economy can recover quickly.
- This budget has no plans for the refugees who are living in Australia. All the new schemes have been ruled out by Morrison. Morrison has already said that there are enough rules to protect the interests of refugees in Australia so there is no need to make further modifications.
The vision of the Government seems quite clear about taking the Australian economy out of this situation. But the effects of these steps will be visible in the coming years.
As the vision of Josh Frydenberg is clear that he is trying to help the Australian economy in faster recovery by creating more jobs. As there are a lot of Australians who lost their jobs in the pandemic. So, people need to be informed about the sectors where more jobs have been created.
- Construction workers:
- It is great news for all those who are in the field of building roads and other such things. After the spread of Coronavirus COVID-19, $14 billion has been invested into the infrastructure sector. This investment is enough to create more than 40,000 jobs in the next 4 years.
- An additional $7.5 billion has been promised in infrastructure projects in every state of Australia. It will create more than 30,000 jobs in Australia.
- Younger people of Australia:
- All the employers who provide jobs to the people of age 16-35 will get benefits from the new JobMaker Hiring Credit scheme.
- So, all the employers who hire a new employee will get hiring credit with the help of this scheme for the upcoming 12 months.
- Another $1 billion have been promised through JobTrainer scheme. This scheme is for supporting all those institutions that enhance the skills of jobseekers.
- Now, another 10,000 Australians are eligible to get home by this scheme. They have to pay only 15% of the total money and the rest of the money will be guaranteed by the government.
- But this move will finally help the tradies. As more and more people will buy homes, there would be more jobs for painters, builders, plumbers, etc.
- $35.9 million have been granted for expanding the entrepreneur mentorship program for women.
- Another package of $240.4 million is there to improve the workforce participation of women. This package will help a lot in providing financial independence to women and increasing their salaries.
- Regional workers:
- All the regional workers who belong to the infrastructure field will be benefitted from a $30 million financial aid that is being provided to telecommunication projects (particularly those which are outside NBN fixed-line areas).
- There would be another $100 million to help regional Australia especially the parts hit by Coronavirus and bushfires.
- Trainees and Apprentices:
- There is a $1.2 billion package called Boosting Apprenticeships Wage Subsidy Package that is intended to create more than 10,000 fresh apprenticeships.
- Workers engaged in Aged care:
- The Federal budget has provided $40.6 million for those who are eligible for aged care facilities. Such funding to enhance the aged care facility will help a lot in creating more jobs for those who are working in this sector.
- Workers in the energy sector:
- As the economy of the country has been hit hard so the government is trying to cut down the power prices. The government can achieve it with the help of private firms. There is a grant of $250 million to make this possible. This in turn will create about 40,000 new jobs.
- Workers of manufacturing industries:
- $1.5 billion has been granted to the six major sectors of manufacturing. Those sectors are space and defense, recycling and clean energy, medical products, mining, food, and drink. The majority of this fund will go in the projects of these sectors. This move is expected to create a large number of new jobs.
Though there are a lot of sectors where most of the people are getting a new job. It is based upon your situation whether you are eligible for one of these or not.
Recently, Josh Frydenberg (the treasurer) unveiled the Federal Budget for 2020. There were many speculations about this budget. As the economy of the country is in one of the worst situations ever after the second world war. This budget has a lot to do in shaping the future of the economy. It would be alarming for economists when they see that their nation is facing a deficit of whooping $214 billion.
People living in a country have their situations. And based on their situations, we are going to talk about how this budget is going to affect them all. We would be taking every category one by one. Just take a look at how important this budget is for different people of this country:
- For those who have superannuation:
- Superannuation has been in the headlines this year as many people took the benefits from this scheme even if they were not eligible.
- The earlier scheme of superannuation is still available and it is valid till December 31, 2020. So, if anyone’s business has been hit by COVID-19 then, they are eligible for another $10,000 financial aid through their Super.
- Now, people don’t have to create another account when they are changing their jobs because they will already have their old superfund. And it will also save their superannuation fees.
- There will be an annual performance test for all those who are availing the benefits of the super fund. If those firms fail to meet certain criteria, they need to move their member to some other fund.
- For women:
- Women comprise more than 50% of the total people who lost their jobs in this pandemic. That is why The Women’s Economic Security Statement has received $240 million. This fund will work for uplifting women and will make them more stable financially.
- For senior citizens (those who are eligible for aged care):
- This budget has provided $1.6 billion for those who need aged care support. Another $205.1 billion have been provided for workers involved in providing aged care facilities.
- For the younger generations:
- The budget has provided $146 million for the students whose studies and situations have been affected by this pandemic.
- The government will introduce more than 50,000 short-term courses in the fields where most jobs are needed. It will particularly help all those who have lost their jobs.
- Overall there would be a $21.8 billion investment in schools for this season.
- For those who are in the health industry:
- Total of $4.9 billion money has been granted for providing a range of health care facilities. This money will help the Australian people to get every kind of health facility until this pandemic ends.
- For jobkeepers:
- This scheme was introduced for the firms that were unable to pay the salaries of their employees. Now, this scheme has been extended until 28 March 2021. All those who work for more than 20 hours per week will get $1200 per fortnight and those who work for less than 20 hours a week will get $750 per fortnight.
- For taxpayers:
- There would be millions of Aussies who will receive tax breaks. The tax cuts which have come into effect after this budget was originally scheduled for 2022. As per this rule, 19% of the tax limits have been increased from $41,000 to $45,000, and 32.5% of the tax limits have been increased from $90,000 to $120,000.
- For those who run small businesses:
- Small businesses can now get tax refunds by showing their losses in this financial year as compared to the profits in the previous year for which they have already paid their taxes. This scheme will be valid for millions of companies.
- This budget has also committed $1.67 billion for cybersecurity, $800 million for a variety of programs to enhance the businesses in the digital world.
- The total cost of eligible depreciable assets can be deducted for the businesses that have a turnover of up to $5 billion.
We have provided information about the effects of this budget on different segments of this country. For more information about this budget, you can go to the official website of the concerned governmental department.
Josh Frydenberg has made it very clear that it is high time to introduce income tax cuts. This decision has been made by seeing the state of the Australian economy in the worst position since the time of World war 3.
The GDP of Australia has fallen by 7 percent for the quarter of June. This has become a matter of major concern for the department of tax return Melbourne. And this has happened due to the lockdown imposed on Australia because of COVID-19.
It is being expected that on October 6, Josh Frydenberg will introduce the budget and the plans about the upcoming versions of JobMaker will be introduced. Providing such information is very crucial as most of the works related to tax are done online by the department for online tax return Melbourne.
When a journalist asked Mr. Frydenberg about whether they are going to cut down the personal tax, he said, “We are on it as this issue has been under our consideration for a long time. Some modifications were made after the last election. Total changes in this field are not apparent as it will take place in three stages. If we somehow manage to put more money in the hands of people, they will spend more of it and eventually more jobs would be created.”
As you know the role of opposition in any working democracy, you can’t know about the whole scenario without listening to both sides. The person concerned with the treasury in the opposition had different viewpoints regarding Mr. Frydenberg. He said that Frydenberg is lacking on vision in all these steps. “Fridenberg started telling about the state of the Australian economy and then suddenly changed the topic to cutting the taxes in particular. It clearly shows that he had no more things to discuss the vision to get this economy in a better state. It’s definitely not the kind of leadership that we want for our economy, especially in this situation. More profound vision is needed in a time when the people of this country find it hard to pay the individual tax return.”
Based on the present situation, tax incentives in the field of infrastructure is very necessary so that business investments would be enhanced.
The situation of the economy will start changing once the effect of the virus reduces and the restrictions are lifted.
But it is very necessary to introduce a roadmap for the businessmen of this country because businessmen will start hiring more and more employees only after making sure that a good route has been decided for the recovery of the economy. Extra people with proper tax training will be needed to make more and more people aware of the financial aids that the government is providing for business owners. This will ultimately lead to enhanced growth of the business.
In this vast age of the internet, there are various sources and people get confused about where to go for authentic information. But there is no need to worry when you have reached here. Accounts NextGen brings to you the most relevant information to make you aware of the situation around you.
It’s been a while since the introduction of the government scheme called JobKeeper to keep the working-class people of Australia employed. But recently some modifications were introduced in this scheme to make it more convenient and accessible for the people who need it the most. In any moment like this, the sole traders are in a state of panic as they don’t know where to find the most relevant and authentic information about this refreshed scheme. As the people are already aware of the strict rules of the department for tax return Melbourne, they need to be updated about the latest information to avoid any trouble. You don’t have to worry much about it as we bring to you the most relevant information about it in this blog.
These changes will come into effect from September 28, 2020, in order to make this scheme more suitable for the sole traders. Later sections of this blog will provide you all the essential information about the changes made if you are a sole trader.
The following updates have been made in JobKeeper 2.0:
- Who is eligible for JobKeeper 2.0?
- You have to keep in mind that only those persons are referred as sole traders who run the business not those who are working in that businessman.
- As of the regulations mentioned in the new scheme, from 28 September 2020, any business that has seen a drop in their turnover is eligible for this as well as all the future versions of this scheme.
- In case, you meet all the criteria except for a few, then there is no need to worry. Because there is a way that enables the Commissioner to exercise his power of discretion. In that case, you may get some additional time to gather all the other documents for eligibility. You should appeal to the commissioner for this opportunity.
- Only those businesses will be eligible for this scheme who meet the eligibility criteria described in the new scheme.
- In case you have any difficulty in any of these processes, the department for online tax return Melbourne is always there to help you.
- What can one do if he/she is not available on the specified date for qualification due to sickness or injury?
- If you have missed the specified date for qualification, there are some special arrangements for you. Go to the page of the Coronavirus Economic Response Package. On this page, you should read the Sole Trader or Small Partnership with Sickness, Injury or leave.
- How much money will I get from JobKeeper 2.0?
- There are different tiers that have been made under this program. How much money you are going to get from this scheme depends on the tier for which you have qualified. As the situation has become so harsh for business owners that they doubt whether they will be able to gather enough money enough for individual tax return, they are constantly asking about the amount of money they are going to get from this scheme. For more information, you should go to the JobKeeper payments section on the official website of ATO.
- Broadly speaking, if you are a sole trader and you have worked for less than 20 hours a week in the last four weeks before 1 March 2020, you will qualify for the lower tier of JobKeeper. And, in case you have worked for more than 20 hours a week before 1 March 2020, you now qualify for the higher tier of payment of the JobKeeper scheme.
- Take a look at the payments plan for the higher and lower tier of JobKeeper:
- $650/fortnight from 4 January 2021 to 28 March 2021.
- $750/fortnight from 28 September 2020 to 3 January 2021.
- $1500/fortnight until 27 September 2020.
- $1000/fortnight from 4 January to 28 March 2021
- $1200/fortnight from 28 September 2020 to 3 January 2021
- $1500/fortnight from until 27 September 2020.
- There are some discretions over the eligibility hours for this scheme. These discretions are valid for those who have either volunteered in the bushfires or they were unable to work because of the restrictions put due to COVID-19.
- What about the new employees arriving in your business:
- No any employee is eligible for this scheme if he has joined your business after 1 July 2020.
- Guidelines about the Advance payment of JobKeeper amount:
- There have been several appeals from the sole traders about the cash flow demands of this scheme. The government reimburses the money in arrears even in the new system.
- What can one do if he is seeing a decline in the turnover after March 1?
- There may be some instances where someone’s business had started declining after March 1, 2020. So, in the new scheme, a way has been designed that enables them to enroll for JobKeeper 2.0.
The Australian government is trying its best to make the business owners capable of coping with this situation. They are introducing new schemes. Such a situation has challenged the people working under the governmental department. That is why the government is always looking for officers who are recruited after giving them the best tax training. That enables them to work under any situation.
In any matter associated with economy and tax, Accounts NextGen is always there to provide you authentic information about the situation going.