Federal budget 2021 - what is known so far

With debt heading towards $1 trillion, the government's budget will continue priming the economy.
With debt heading towards $1 trillion, the government's budget will continue priming the economy.

FEDERAL BUDGET - WHAT'S KNOWN SO FAR:

THE BIG PICTURE

* Scott Morrison and Josh Frydenberg say it will be a "jobs budget" with the aim of boosting the economic recovery, which has already begun after a short-lived recession

* Economists expect a smaller budget deficit of around $80 billion for 2021/22 compared to the $108.5 billion estimated in the mid-year budget review

* Debt edging towards $1 trillion

* Unemployment rate of 5.6 per cent in March

* JobKeeper expected to cost $12.5 billion less than estimated, due to quicker recovery

* High iron ore price will boost revenue coffers

THE GROUND RULES

* Maintain a tax-to-GDP ratio at or below 23.9 per cent

* Budget repair won't commence until unemployment sub-five per cent

* Spending that lifts productivity

* Structural reform to boost economic growth

* Improving service delivery and funding national security measures

HIP POCKET

* Another 12 months of low and middle-income tax offsets

* Not expected to bring forward timing of income tax cuts

* Changes to superannuation to help women boost their retirement savings

* Age dropped to 60 for downsizers seeking to put home sale money into their superannuation

COVID-19

* No opening of international border until 2022

INFRASTRUCTURE

* $10 billion extra for road and rail infrastructure

* Commonwealth to share the cost of 2032 Olympic Games with the Queensland government

BUSINESS

* Incentives to attract global talent and business to Australia

* $1.2 billion digital economy strategy including tax breaks for businesses, digital cadetship trial and $500 million on government services

* Craft brewers and distillers to benefit from excise refunds

* Companies to benefit from simplified liquidation and restructuring rules

* $4 million for the Australian Communications and Media Authority to run the news media bargaining code involving major tech platforms

* Australian Associated Press expected to receive $15 million over two years

HEALTH/AGED

* $17.7 billion response to the aged care royal commission

* More spending on mental health

* Disability spending boosted

* Telehealth subsidies extended to the end of 2021

* $8 million federal contribution to Canberra compensation scheme for victims of loose-fill asbestos

* Country doctors will be paid extra under a $65 million bid to tackle GP shortages in remote and regional Australia.

WOMEN

* Budget to include women's statement on economic safety and health issues

* Domestic violence prevention funding to double to at least $680 million

* $354 million over four years for cervical and breast cancer, endometriosis and reproductive health

HOUSING

* Five per cent deposit scheme for 10,000 first-home buyers purchasing a new dwelling, with the federal government guaranteeing up to 15 per cent of the loan

* Single parents buying their first home will be able to purchase a new dwelling with a two per cent deposit, with the federal government guaranteeing up to 18 per cent of the loan

(Price caps apply to both categories)

* First-home buyers will be able to release $50,000 from superannuation to save for a deposit, up from $30,000

CLIMATE

* $565 million plan for low emissions technology partnerships

* $263 million for carbon capture and storage

* $275.5 million to set up regional hydrogen hubs

WELFARE

* Expanded childcare subsidies worth $1.7 billion. Families with more than one child under the age of five in child care will have 95 per cent of their out-of-pocket expenses for second and subsequent children paid, from mid-2022. Also removal of $10,560 cap on childcare subsidy

* Measures to boost the childcare workforce

* JobSeeker payments to fall to $14.7 billion by 2024/25 from $32 billion forecast in December

RURAL/REGIONAL

* $371 million biosecurity package to protect agricultural and regional communities

* $10 billion reinsurance pool set up by July 2022 to subsidise high premium costs in north Queensland due to numerous disaster events

* $600 million for a National Recovery and Resilience Agency to support local communities hit by major disasters

* Sixth round of the Building Better Regions Fund for shovel-ready infrastructure projects outside major capitals, worth $250 million

* Northern Australia to receive business grants and improvements to digital services

* $66 million for Newcastle Airport upgrade

Australian Associated Press