Watch live: Frydenberg to hand down federal budget

Treasurer Josh Frydenberg is set to hand down this year's budget from 7.30pm AEST, with billions of dollars expected to be spent on getting people back to work more than a year into the global pandemic.

Those in aged care and working parents are tipped to be the big winners.

From childcare subsidies to an infrastructure cash splash, here's what we already know is in it:

ECONOMY

A post-COVID jobs boom is set to slash the forecast budget deficit by $53b this year.

According to The Australian, the budget deficit for 2020-21 will be $161bn compared with the $213.7bn forecast in the October 6 budget.

Strong jobs growth, a drop in JobSeeker payment recipients and a lift in company profit tax is behind the recovery.

CHILDCARE

The Morrison Government recently announced a $1.7 billion package that will increase the childcare subsidy to a maximum of 95 per cent for the second and subsequent children in care.

The funding will also abolish the $10,560 annual subsidy cap for high-income earners.

About 250,000 families are expected to benefit from the changes, which will save them about $2260 a year.

PROPERTY BUYERS

The federal government announced late last week a new program to support single parents looking to buy a home.

Under the Family Home Guarantee Package, single parents with a household income of less than $125,000 would only need to save a two per cent deposit to get into the housing market.

The scheme would target single mothers in particular, with the government estimating that out of the 125,000 single parents who are eligible, 80 per cent are women.

The program would support up to 10,000 single parents with dependants over four years, commencing 1 July 2021.

Single parent first home buyers would be eligible as well as single parents attempting to re-enter the housing market after divorce and family breakdown.

First-home buyers are also set to benefit in this year's Federal Budget.

Ten thousands places will be added to the First Home Loan Deposit Scheme (rebranded as the New Home Guarantee), which enables newbie buyers to purchase or build new homes with a deposit as low as five per cent.

The federal government guarantees the remaining 15 per cent.

The First Home Super Save Scheme will also be tweaked.

Those looking to get a foot on the property ladder will be able to release up to $50,000 of voluntary contributions to purchase a home so long as they live in it. This is up from $30,000.


WOMEN'S SERVICES

Cervical and breast cancer, endometriosis and reproductive health services will get a $354 million boost.

On Sunday, federal Health Minister Greg Hunt and MP Dr Katie Allen announced a $100 million investment in improving cervical and breast cancer screening programs.

There will also be a $96 million injection for new tests under the Medicare Benefits Scheme (MBS) for pre-implantation genetic testing of embryos for specific genetic or chromosomal abnormalities prior to pregnancy.

A $47.4 million boost will be given to ensuring the mental welfare of new and expecting parents and $26.9 million in funding for people with eating disorders.

Mr Hunt also outlined $22 million for additional gynaecology items on the MBS, including items for Assisted Reproductive Technology and long-term reversible contraceptives.

Other funding schemes announced include:

  • $21.6 million for women's health initiatives, including Jean Hailes for Women's Health and the Pelvic Pain Foundation of Australia for the Periods, Pain and Endometriosis Program (PPEP-Talk)
  • $19.3 million for the Pharmaceutical Benefits Scheme listing of Oripro (progesterone) to prevent women going into premature labour.
  • $13.7 million for the Australian Preterm Birth Prevention Alliance to reduce pre-term birthrates.
  • $6.6 million for Breast Cancer Network Australia to operate its helpline, rural and regional information forums and extending its consumer representative training program.

 

 

The Morrison Government recently announced a $1.7 billion package that will increase the childcare subsidy to a maximum of 95 per cent for the second and subsequent children in care. Picture: iStock
The Morrison Government recently announced a $1.7 billion package that will increase the childcare subsidy to a maximum of 95 per cent for the second and subsequent children in care. Picture: iStock

 

 

AGED CARE

Aged care will be overhauled with a $10 billion-plus injection, described by federal Health Minister Greg Hunt as "largest package in Australia's history" for the sector.

The package is expected to address the recommendations issued by the Aged Care Royal Commission. Two of those - that more funding be given for home care packages, and boosting the daily fee pad on a per bed basis to aged care providers - are set to be included in the four-year investment.

Mr Hunt also confirmed the government would "respond in full" to the Commission's recommendations in the Budget on Tuesday.

 

TAX RELIEF

About 10 million workers are expected to benefit from a likely extension of the low and middle income tax offset.

The offset is worth up to $1080 for those earning between $48,000 and $90,000.

It was slated as a one-off stimulus measure in last year's Budget, but the Herald Sun in April revealed it is likely to be retained for another 12 months at a cost of about $7 billion.

 

INFRASTRUCTURE

 

NSW: $2.03bn investment in the Great Western Hwy to separate local traffic and freight travelling through the Blue Mountains between Katoomba and Lithgow

SA: $2.6bn for the North-South Corridor through Adelaide; $148m for Augusta Highway duplication work and $161m for a Truro bypass on the Sturt Highway

VIC: $2bn for the Melbourne Intermodal Terminal, to be established in Truganina or Beveridge, which will connect to the 1700m Inland Rail link and take 5500 trucks a day off the roads; $10m for the Outer Metropolitan Ring Road, a 12-lane freeway from the outer southwest to outer north that would also connect to the freight hub.

QLD: $1.6bn in roads and rail funding; $400m for the Bruce Highway, from Gladstone to Rockhampton and Mackay to Proserpine, covering floodproofing, safety improvements and reducing congestion; $400m for the inland freight route from Charters Towers to Mungindi, helping to take truck traffic off the Bruce Highway; and for the Gold Coast and Logan, $126m for stage 3 of the light rail system and $178m for pre-construction work to upgrade 19km of rail track between Kuraby and Beenleigh.

 

- with NCANewswire

 

Originally published as Federal Budget 2021: What we know



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