This is a heavy burden, but a necessary one to responsibly deal with the greatest challenge of our time.The Budget includes a record deficit after the coronavirus pandemic.
Source:News Corp Australia Treasurer Josh Frydenberg has unveiled tax cuts worth up to 5490-a-year for families and will demand Parliament urgently legislate the relief to ensure the cash can hit workers pay packets by the end of the month, in a big spending federal Budget. Promising the instant tax cuts will offer hope in a year marked by floods, droughts, fires, and a global pandemic, the Budget will also offer a new wage subsidy to bosses who hire young, unemployed workers. Pensioners will also secure a cash bonus worth a total of 500 in two lump sums in December and March. Unveiling a monster Budget deficit of 213 billion this year and a record net debt of 966 billion by 2024, the fiscal outlook is based on a gamble that a vaccine for COVID-19 can be developed. But theres a sting in the tax tail for most workers earning 90,000-a-year or less who will secure half their tax cut now in their pay packet and another 1080 when they lodge their tax returns in July 2021. That means for the vast majority of workers, the tax cuts are worth 20-a-week now in your pocket despite the fact they are worth 2160 over the financial year. The reason for the delay is the result of the low and middle income tax offset that is only paid as a lump sum at the end of the financial year to workers earning less than 90,000. ![]() Picture: Adam Taylor Source:Supplied For high income earners on salaries of 120,000 a year or more the tax cut will be worth around 50 a week. They wont have to wait for half of their tax cut when they lodge their return. A lump-sum payment will also be offered to all workers to cover the backdated tax cut they have missed out on between July 1, 2020 and whenever the legislation passes Parliament. Thats likely to push the 1080 tax refund for most workers by around 300. Putting more money into the pockets of hard working Australians strengthened our economy to respond to this economic crisis, Mr Frydenberg said. More than 11 million taxpayers will get a tax cut backdated to 1 July this year. Australians will have more of their own money to spend on what matters to them, generating billions of dollars of economic activity and creating 50,000 new jobs. Describing Australias circumstances as challenging amid the most severe global economic crisis since the Great Depression, Mr Frydenberg said the economy and Australians were fighting back. Flood, drought, fires, and a global pandemic, Mr Frydenberg said. So many Australians, through no fault of their own, are doing it tough. Jobs have gone. The Great Depression and two World Wars did not bring Australia to its knees, neither will COVID-19. But the cost of the COVID-19 recession will also deliver the biggest budget deficit in Australian history, reaching 213.7 billion this year. The budget forecasts the deficit to fall to 66.9 billion by 2023-24. In the space of just one month, more than one million Australians lost their jobs or saw their working hours reduced to zero. In my home state of Victoria, millions have been in lockdown. Net debt will increase to 703 billion or 36 per cent of GDP this year and peak at 966 billion or 44 per cent of GDP in June 2024.
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