Treasurer Josh Frydenberg has promised relief for Australian families in Tuesday’s budget, as the government made another flurry of announcements around small business and apprentices.
The treasurer says there will also be a material improvement to the budget bottom line – “a very significant one”.
“That’s the fiscal dividend we are getting to the bottom line from having a strong economy,” Mr Frydenberg told the Nine Network on Sunday.
While providing support for households, he believes he has got the balance right for his pre-election budget, and won’t put additional pressure on the Reserve Bank to raise the cash rate earlier than need be.
“The measures we have in the budget are designed to not put unnecessary upward pressure on inflation that is already high right now,” he said.
He said the relief for households recognises that fuel costs are very high, although he declined to say whether he would cut the 44 cents a litre fuel excise.
“The measures to provide cost of living relief will be targeted, they will be temporary, they will be proportionate to the challenges Australian families face,” Mr Frydenberg said.
He also wouldn’t say whether he would extend the low and middle income tax offset for a third year in a row, a tax break of up to $1080 when people make their tax return.
“That was always a temporary measure that was designed as a fiscal stimulus with economy being hit by the pandemic,” he said, pointing out people will still get it when they make this year’s tax return.
But shadow treasurer Jim Chalmers said he is expecting some movement both on this tax break and fuel excise, adding that Labor was unlikely to stand in the way of such measures.
“The budget needs to help Australian families through difficult times and not just help the government through an election,” Dr Chalmers told ABC’s Insiders program.
Mr Frydenberg told Sky News’ Sunday Agenda program there will be a series of initiatives in the budget to support small business.
There would also be a $44 million program that provides $10,000 for employers who take on seniors with a disability
“It’s important because these workers with a disability as seniors are very valuable members of our workforce and businesses are incentivised to take them on,” he said.
The government is also providing $365.3 million to support an extra 35,000 apprentices and trainees get into a job through an extension of its “boosting apprenticeship commencements and completing apprenticeship commencements” wage subsidies.
Prime Minister Scott Morrison said by backing apprentices in their training the government is boosting the pipeline of workers Australia is going to need for a stronger economy and a stronger future.
“These programs deliver certainty for business so they can go and hire another apprentice chef, another apprentice hairdresser, another apprentice plumber. It is about getting Australians skilled and into jobs right now,” he said in a statement.
Any employer who takes on an apprentice or trainee up until June 30, 2022, can gain access to 50 per cent of the eligible Australian apprentice’s wages in the first year, capped at a maximum payment value of $7000 per quarter.
This reduces to 10 per cent in the second year, capped at a maximum payment value of $1500 per quarter, and then five per cent in the third year, capped at a maximum payment value of $750 per quarter.
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