Australia’s 2020 Budget: Everything You Need To Look Out For

Following delays due to COVID-19, Treasurer Josh Frydenberg is preparing to deliver Australia’s 2020 Budget today, touted as one the most important budgets since World War II. Here’s how and when Aussies will find out what the changes are, and what we should all be looking out for when the budget is unveiled this evening.

Australia Budget 2020: What To Look Out For

Tax Cuts

According to the ABC, the Budget will confirm tax cuts that will be brought forward and backdated to July this year. The cuts – which many hope will take effect as soon as the end of this month – will reportedly inject $12 billion into take-home pay in 2020-2021.

If these tax cuts go ahead, those earning between $45,000 and $90,000 will earn an extra $1,080 this financial year. Australians earning over $90,000 will take home up to $2,565 extra, and those who earn over $120,000 will receive the most. 

News.com.au reports that the government is also looking to remove the 37% tax rate so anyone earning between $45,000 and $200,000 will only pay 30% tax.

The government is hoping Australians will spend the extra money, helping to lift the struggling economy impacted by COVID-19 border closures, shutdowns and lack of consumer confidence. 

While there are hopes the money will get spent, the ABC reports that recent data shows households have saving more than usual amidst the pandemic. 

First Home Buyers

The Budget is said to expand the government’s First Home Loan Deposit Scheme, increasing the value of eligible brand-new properties from $700,000 in Sydney to $950,000. In Melbourne, the cap will be increased to $850,000 and in Brisbane, $650,000. This also means that first home buyers with a 5% deposit won’t need to pay lenders mortgage insurance.

Australia’s 2020 Budget is also looking to benefit tradies through a range of programs and incentives, and give small businesses access to tax breaks. 

However, those who may not benefit from the budget include Aussies who don’t pay tax, those who rely on social housing, big businesses and people hoping for changes to the superannuation guarantee. 

When Will The Australia 2020 Budget Details Be Revealed?

Australia’s 2020 Budget will be revealed tonight, October 6, at 7:30 p.m.. You can watch Josh Frydenberg’s announcement on Facebook, ABC and Sky News.