Budget 2020: What we know so far

Budget measures announced by the federal government so far include:

Infrastructure

  • $1.1 billion for rail and road projects across Victoria, set to create 4000 jobs
  • $320 million for faster rail between Shepparton and Melbourne
  • $208 million to improve the reliability of Geelong to Warrnambool trains
  • Sharing cost of road projects promised by Victorian government, including $292 million towards Barwon Heads upgrade

Treasurer Josh Frydenberg – flanked by Finance Minister Mathias Cormann – will deliver the 2020 budget on Tuesday night.Credit:Alex Ellinghausen

Trainees and apprentices

  • $1.2 billion to cover half the salaries of apprentices and trainees
  • Up to $7000 a quarter per person, not available in conjunction with JobKeeper
  • Open to employers of any size and industry taking on trainees by September 30, 2021

Manufacturing

  • $1.5 billion to local manufacturing to help factories modernise production and increase exports
  • $52.8 million in grants within three months, $1.3 billion more next year
  • $107.2 million for areas such as medical products, to lift domestic capacity for emergencies

Income tax

  • Tax cuts slated for 2022 to be brought forward and backdated to July 2020
  • Income tax brackets adjusted, providing relief for the top four quintiles
  • Upper limit of the lowest 19 per cent tax threshold raised from $37,000 to $45,000
  • Cut-off for second-highest tax band lifted from $90,000 to $120,000, and highest to $200,000
  • Tax cuts planned for 2024 expected to be brought forward

First home buyers

  • First Home Loan Deposit Scheme to be extended to June 2021
  • Price cap adjusted from $700,000 to $850,000 for Melbourne

Small business

  • $112 million in tax breaks for 20,000 small businesses
  • Eligibility cap for Fringe Benefits Tax concessions lifted from $10 million annual turnover to $50 million
  • Businesses exempt from paying 47 per cent FBT on expenses such as parking and electronics

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