The Federal Budget of the year 2020 and what does it hold for everyone in this country - Accounts NextGen

The Federal Budget of the year 2020 and what does it hold for everyone in this country

The Federal Budget of the year 2020 and what does it hold for everyone in this country

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:

  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.

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