Millions of Aussies are set to benefit from tax cuts, wage subsidies and asset write-offs, as part of the federal budget unveiled last night.
Some 11 million people will get a backdated tax cut, which is expected to put around $1,000 back in pockets before Christmas.
It’s understood pay packets will soon include an extra $20 a week, along with a lump sum of $1,080 in next year’s tax returns.
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Treasurer Josh Frydenberg told Sunrise the money will begin to flow as soon as the cuts are legislated.
The government has temporarily changed tax thresholds, with the 19 percent threshold rising from $37,000 to $47,000. While the 32.5 percent threshold will go from $90,000 to $120,000.
It’s hoped the massive $98 billion Budget stimulus package will create almost a million new jobs within four years.
For businesses, the wages of young workers will be subsidised to try and encourage job creation through the new ‘Job Maker’ plan.
Businesses are set to receive a $200 ‘hiring credit’ each week, if they employ someone on JobSeeker between the ages of 16 and 29. Or a $100 payment if the worker is between 30 and 35.
Meantime, Apprenticeships and traineeships will be boosted with a 50 percent wage subsidy.
In a further boost to business, instant asset write offs will be expanded.
It’s understood companies will be able to write off the full value of eligible assets (up to $150,000) that they buy before June 2022.
It’s expected around 3.5 million businesses will take advantage of this, delivering almost $27 billion in tax relief.