THE HON JOSH FRYDENBERG MP – Treasurer – Media Release – Economic Recovery Plan for Australia

THE HON JOSH FRYDENBERG MP

Treasurer

MEDIA RELEASE

6 October 2020

ECONOMIC RECOVERY PLAN FOR AUSTRALIA

Our Economic Recovery Plan for Australia will create jobs, rebuild our economy and secure Australia’s future.

Since the onset of the COVID-19 pandemic, the Government has provided $257 billion in direct economic support to cushion the blow and strengthen the recovery.

The 2020-21 Budget commits a further $98 billion including, $25 billion in direct COVID-19 response measures and $74 billion in new measures to create jobs.

Under our plan, the economy is forecast to grow by 4¼ per cent next calendar year and unemployment is expected to fall to 6½ per cent by the June quarter 2022.

We will do this by:

• Supporting nearly half a million young Australians with a new JobMaker hiring credit
• Investing a record amount in skills and training to make sure Australians have the skills they need to get a job
• Supporting our manufacturing industry to build our sovereign capability and help create jobs
• Incentivising business to invest in their business, creating more economic activity and more jobs
• Providing tax relief for more than 11 million hard working Australians, to put more money in their pockets to spend in small businesses across the country and help create jobs
• Investing more in infrastructure now to create more jobs

JobMaker Hiring Credit

The $4 billion JobMaker Hiring Credit will be payable for up to 12 months for each new job and is available from tomorrow to employers who hire eligible employees aged 16-35.

The Hiring Credit will be paid quarterly in arrears at the rate of $200 per week for those aged between 16-29, and $100 per week for those aged between 30-35.  Eligible employees are required to work a minimum of 20 hours per week.

To be eligible, employers will need to demonstrate an increase in overall employee headcount and payroll for each additional new position created.

Treasury estimates that this will support around 450,000 jobs for young people.

Skills and training

Our JobMaker Plan includes the establishment of the $1 billion JobTrainer Fund to create up to 340,000 free or low cost training places for school leavers and job seekers.

We are building on our existing support for apprenticeships by committing an additional $1.2 billion to create 100,000 new apprenticeships and traineeships, with a 50 per cent wage subsidy for businesses who employ them.

To help more Australians get a job, in this Budget we are also funding 50,000 new higher education short courses and 12,000 new Commonwealth supported places for higher education in 2021.

Tax relief

The Budget provides an additional $17.8 billion in personal income tax relief for more than 11 million hard-working Australians to support the economic recovery, including an additional $12.5 billion over the next 12 months.

The Government is supporting economic activity by allowing over 99 per cent of businesses employing 11.5 million Australians to deduct the full cost of eligible depreciable assets of any value in the year they are installed.  Small, medium and larger businesses with a turnover of up to $5 billion will be eligible.

Complementing this measure, the Government will also allow companies with turnover up to $5 billion to offset losses against previous profits on which tax has been paid to generate a refund.  Providing much needed cashflow support, this measure will support investment and help keep Australians in work.

Building our capability

The Budget invests $1.5 billion in our Modern Manufacturing Strategy – ensuring we have an internationally competitive and resilient manufacturing sector, and in the process create more high value jobs.

We are also helping to secure our future by providing:

•    an additional $2 billion through the Research and Development Tax Incentive
• $1 billion for new research funding for our universities
• $1.9 billion in new funding to support low emissions and renewable technologies

Infrastructure

The Government’s infrastructure investments are supporting 100,000 jobs on worksites across the country.

The Budget expands our record 10 year infrastructure pipeline to $110 billion. 

The measures announced in this Budget, together with what we have announced since the start of the crisis, will see $14 billion in new and accelerated infrastructure projects support a further 40,000 jobs.

The Budget will fund major projects across each state:

• The Singleton Bypass and Bolivia Hill Upgrade in New South Wales
• The upgrade of the Shepparton and Warrnambool Rail Lines in Victoria
• The Coomera Connector in Queensland
• The Wheatbelt Secondary Freight Network in Western Australia
• The Main South Road Duplication in South Australia
• The Tasman Bridge Upgrade in Tasmania
• The Carpentaria Highway Upgrades in the Northern Territory
• The Molonglo River Bridge in the Australian Capital Territory.

The Budget also includes a $2 billion investment in road safety upgrades to save lives.

Funding for these shovel ready projects will be provided on a use it or lose it basis.

If a State drags its feet, another State will get the money.

The Government is also expanding the Local Roads and Community Infrastructure program.

Investing an additional $1 billion to support local councils to immediately upgrade local roads, footpaths and street lighting to create jobs now.

Australians can be confident that the Government’s Economic Recovery Plan for Australia will create jobs, rebuild our economy and secure Australia’s future.

Ends

UNOFFICIAL

Please Note: The information contained in this e-mail message and any attached files may be confidential information and may also be the subject of legal professional privilege.  If you are not the intended recipient, any use, disclosure or copying of this e-mail is unauthorised.  If you have received this e-mail by error please notify the sender immediately by reply e-mail and delete all copies of this transmission together with any attachments.