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Budget 2020: What you need to look for in tonight’s release

Published: (Updated: ) in Australian News by .

From income tax cuts to wage subsidies, JobSeeker and JobKeeper changes, here’s what you can expect.

It's being billed as the biggest Federal Budget since WWII: the crushing expense of supporting more than five million Australians through the worst of the COVID-19 pandemic is expected to plunge the deficit $210 billion into the red.

Not in 60 years has a Federal Treasurer had to devise a plan to support the work of such a large proportion of the population, but tonight Josh Frydenberg will unveil a plan that is designed to simultaneously create jobs and pour money into the economy.

Follow live update updates, the Treasurer's address and see all the winners and losers from 7.30pm here

Budget livestream

But, as the old adage goes, you have to spend money to make money.

Here's what we know so far – and what we are expecting – in tonight's budget.

READ MORE: Treasurer hopeful of Australia becoming 'a stronger nation' as he talks up tonight's budget

INCOME TAX CUTS FOR EVERYBODY

The formula is simple: the less tax you pay, the more money you have in your pocket and the more money you spend at the shops.

That is the economic philosophy the government is taking when they are widely tipped to back-date tax cuts originally legislated for July 1, 2022.

Under the tax cuts, the majority of Aussies earning between $45,000 and $90,000 will take home an additional $1080 a year – or just over $20 a week.

READ MORE: Federal Budget 2020: Income tax cuts tipped to be backdated to July this year

Applying for a job was like banging your head against a brick wall, former Melbourne events manager Mia said.

The top tax bracket of $180,000 will be pushed up to $200,000 and the lower threshold of the 37 per cent bracket will be pushed up from $90,000 to $120,000.

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Additionally, lower income earners will have to take home more than $45,000 before they are slugged 37 per cent in tax.

For context, the median yearly wage in Australia (which includes both full-time, part-time and casual) is just under $68,000.

For a full preview of the incoming tax cuts you can head here.

WAGE SUBSIDIES FOR EMPLOYERS WHO GIVE JOBS TO THE YOUNG

Another prominent feature of the budget is likely to be a wage subsidy given to employers who choose to hire a person under the age of 35 and on welfare.

A subsidy would essentially mean it would be cheaper for employers to fill their workforce with apprentices and trainees from the ground up.

The exact dollar figure of this subsidy is still unclear, but it's expected that it will be designed to get young Australians off JobSeeker and into casual and part-time roles.

READ MORE: Budget 2020: Government unveils nearly $4 billion in spending on NSW and Victorian road projects

FIRST-YEAR APPRENTICESHIPS TO COME AT HALF PRICE

The Federal Government will invest an additional $1.2 billion to support Australian businesses to employ 100,000 new apprentices or trainees as part of the COVID-19 economic recovery plan.

Mr Frydenberg confirmed the news on Today on Sunday morning, saying the initiative is part of the upcoming federal budget.

He said the Federal Government will pay half of all wages to apprentices and trainees for the first year of employment.

"Our announcement today will help create 100,000 apprenticeships. Whether you are a baker or a butcher, whether you are a sparky, whether you are a plumber or a carpenter, you are getting support," Mr Frydenberg told Today.

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Under the new apprenticeship measure, employers will be eligible for 50 per cent of the wages for a new or recommencing apprentice or trainee for the period up to 30 September 2021, up to $7000 per quarter.

Read a full explanation of how this measure might work here.

EXPLAINED: What a recession means for ordinary Aussies

ROAD AND RAIL PROJECTS TO CREATE CONSTRUCTION JOBS

The Federal Government has already announced almost $4 billion worth of road and rail projects for Victoria and NSW.

The infrastructure cash splash – designed to simultaneously create post-COVID jobs and improve access to regional areas – will see $3.8 billion spent across 39 projects on Australia's eastern seaboard.

Of that, $2.7 billion will be spent on projects in NSW while $1.1 billion will be spent on transport infrastructure projects in Victoria.

A full list of projects can be found here.

Queensland border lines grow

READ MORE: Hundreds of thousands of jobs empty - but opportunity is knocking

MORE FIRST HOME BUYERS ADDED TO DEPOSIT SCHEME

The Federal Government has announced an additional 10,000 places in its First home Loan Deposit Scheme in a bid to help more Australians into their first home.

The additional 10,000 places will be provided from October 6 this year.

Under the existing First Home Loan Deposit Scheme, eligible first home buyers can purchase a modest home with a deposit of as little as 5 per cent.

The Federal Government acts as guarantor on the remaining 15 per cent of the deposit - which home owners still need to pay.

The additional guarantees will be available until 30 June 2021 and will drive more construction and support jobs as part of our Economic Recovery Plan.

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You can read a full breakdown of this here, or the ultimate guide on how to buy a home with 5 per cent deposit here.

ULTIMATE GUIDE: First Home Buyers: How to buy with just a 5 per cent deposit

You can get up-to-date information from the Federal Government's Coronavirus Australia app, available on the App StoreGoogle Play and the Government's WhatsApp channel.

Beyond Blue's Coronavirus Mental Wellbeing Support Service is a 24/7 service free of charge to all Australians. Visit the site here or call 1800512348

For coronavirus breaking news alerts and livestreams straight to your smartphone sign up to the 9News app and set notifications to on at the App Store or Google Play.

Source: 9News https://www.9news.com.au/national/australian-federal-budget-2020-how-the-budget-will-affect-me/2cf9c747-dca1-48b7-bd0b-4b3947d05687

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Finance Advice 2021