News dalla rete ITA

12 Ottobre 2020

Australia

ECONOMY: WHAT'S IN THE FEDERAL BUDGET FOR MILLENNIALS

Treasurer Josh Frydenberg handed down a federal budget on Tuesday the 6th of October that was unthinkable before the coronavirus pandemic — a $213.7 billion deficit and $700 billion in net debt.Often, the budget can be focused on elderly people, pension, superannuation tax, etc. but, against the backdrop of the pandemic and with the government focused on "temporary and targeted" measures to get working-age people through to the other side, this year there were some key measures that could make a big difference for the hip pockets of taxpayers and voters under 40. 1. Tax cuts for middle income earnersIncome tax cuts formed a central plank of the government's plan to keep the economy moving. First, it will backdate the tax cuts it has already announced to July 1 this year and lift the threshold at which the 37 per cent tax rate applies, that means people earning between $90,000 to $120,000 now pay 32.5 per cent in income tax, rather than 37 per cent. Plus, the upper limit of the 19 per cent personal income tax bracket will rise from $37,000 to $45,000.For more than 5 million Australians, including many Millennials, it would mean an annual cash injection of more than $2000.2. First home buyer scheme boostedTo help young people get onto the property ladder (and boost construction and property development in the process) the government made changes to its first home buyer deposit scheme.Under the scheme, eligible borrowers will be able to buy a new house, apartment or a house-and-land package with a deposit of 5 per cent of the property’s value, compared with the usual 20 per cent, without taking out lender’s mortgage insurance. That means a home loan of $570,000 on a $600,000 property will save the buyer about $25,700 in mortgage insurance, according to lender analysis.3. Wage subsidies for young workersThe JobMaker package included a hiring subsidy of $200 a week for workers aged 16 to 29, or up to about $10,000 a year. But it will fall to $100 a week for those aged 30-35. The subsidy is available to business for up to the first 12 months of a worker's employment and is forecast to cost $850 million over the next eight months and a total of $4 billion for the three years to 2022-23.Some have raised concerns that prioritising the hiring of people aged up to 35 could come at the expense of older workers, who traditionally find it much harder to return to the labour market after a recession. They also worry it could lead to more casual jobs.4. Big superannuation changesThe superannuation industry was expecting the government to extend its controversial early release scheme allowing members suffering hardship to withdraw up to $20,000 (and were already preparing to push back). Instead, it unveiled a trio of shock measures that could shake up an industry still reeling both from the early release scheme — under which $33 billion has been pulled out of retirement savings — and the still-lingering findings of the banking royal commission. (ICE SYDNEY)


Fonte notizia: The Australian Financial Review 7/10/2020