The budget of 2020: Are you a winner or loser - Accounts NextGen

The budget of 2020: Are you a winner or loser

The budget of 2020: Are you a winner or loser

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:

  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. Taxpayers:
  • 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.

  1. 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.
  1. 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.
  1. Refugees:
  • 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.

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