Senator The Hon Simon Birmingham, Minister for Trade, Tourism and Investment, and Senator for South Australia, is soon to become Senate leader and finance minister following the imminent retirement of Mathias Cormann.
Following the release of the budget this week by Prime Minister Scott Morrison, Senator Birmingham released a statement on the state of the budget, and the economic recovery plan for South Australia.
He believes that the Morrison Government’s Economic Recovery Plan will create jobs, rebuild our economy and secure South Australia’s future.
Birmingham says “New Budget measures will further support businesses across our state, get South Australians back into jobs and build on our unprecedented investment in the health and economic response to COVID-19.
“Since the onset of the pandemic, we have provided $257 billion in direct economic support to cushion the blow and strengthen the recovery, including $3.3 billion in JobKeeper payments and $1.6 billion in cash flow boost credit amounts to South Australian residents and entities.
“The Morrison Government will deliver significant tax relief for South Australians as part of our economic recovery plan.
“This means more money in the pockets of local households to assist with the cost of living, but also to help generate economic activity and create jobs,” Minister Birmingham said.
The statement on his website listed the following tax relief avenues for individuals and businesses across the state:
– bringing forward stage two of our Personal Income Tax Plan which will deliver tax relief to around 790,000 taxpayers in South Australia for the 2020-21 financial year, with 690,000 taxpayers to receive up to $1,080 for lower and middle income earners, and $2,160 for dual income families.
– business tax incentives for 300,000 South Australian businesses with a turnover of up to $5 billion able to immediately deduct the cost of eligible assets.- a cash flow boost, temporarily allowing companies with a turnover of up to $5 billion to offset tax losses against previous profits on which tax has been paid.
As part of JobMaker plan the government will:
– support nearly half a million young Australians through our new JobMaker hiring credit to encourage businesses to employ younger Australians.
– commit an additional $1.2 billion to create 100,000 new apprenticeships and traineeships, with a 50 per cent wage subsidy for businesses who employ them.
– establish a $1 billion JobTrainer Fund to create up to 340,000 free or low cost training places for school leavers and job seekers.
– fund 50,000 new higher education short courses and 12,000 new Commonwealth supported places for higher education in 2021.
The government will also continue to guarantee the essential services South Australians rely on through:
– delivering a record $1.6 billion in schools and skills funding.
– increasing payments to South Australia for public hospitals from $1 billion in 2012-13 to $1.5 billion in 2020-21.
– two additional $250 payments for about 390,000 South Australians on lower incomes including about 220,000 Age Pensioners and 28,000 Commonwealth Seniors Health Card holders, the first to be provided from December 2020 and the second from March 2021.
– further support to older Australians who wish to stay at home for longer by providing $1.6 billion for an additional 23,000 home care packages.
– providing a further $3.9 billion to the National Disability Insurance Scheme to ensure Australians eligible for the NDIS have access to the supports they need now and into the future.
– a record $5.7 billion to be spent on mental health in 2020–21, including doubling the number of Medicare-funded psychological services from 10 to 20 through the Better Access Initiative.
South Australian Cabinet Minister Anne Ruston said “The COVID-19 crisis has confirmed how vital it is to have a strong economy that can continue to guarantee the delivery of essential services. That’s why in this Budget we have been able to provide record funding for hospitals, schools, child care, aged care and disability services.”
The statement went on to say “We’re also delivering record infrastructure investment, expanding our record 10 year infrastructure pipeline to $110 billion, and supporting a further 40,000 jobs nationally. This includes an additional $625.2 million of funding for land transport infrastructure projects across SA over the next decade, including:
– $200 million for the Hahndorf Township Improvements and Access Upgrade;
– $100 million for the Strzelecki Track Upgrade;
– $136 million for Stage 2 of the Main South Road Duplication (Aldinga to Sellicks Beach); and
– $136 million for the Princes Highway Corridor – intersection improvements, overtaking lanes, pavement works, rest areas, safety and signage improvements and shoulder sealing.
The government is also further backing the recovery of the South Australia economy and supporting the creation of more jobs through:
– investing $1.5 billion in a Modern Manufacturing Strategy to ensure Australia has an internationally competitive and resilient manufacturing sector, targeting key local sectors like defence and space.
– a $2 billion boost to the Research and Development Tax Incentive to encourage South Australian businesses to innovate and develop new technologies.
– fast-tracking a range of capability, infrastructure, skilling and workforce initiatives within South Australia’s booming defence industry.
– further assisting first home buyers and the construction sector by extending the First Home Loan Deposit Scheme to another 10,000 places and providing an additional $1 billion of low cost finance to support the construction of affordable housing.
– encouraging young South Australians to take a gap year and work in regions to support farmers facing labour shortages with the Government committing $16.3 million to temporarily introduce a new pathway for achieving independence for the purposes of Youth Allowance (student) and ABSTUDY.
– injecting $317.1 million into our International Freight Assistance Mechanism to help South Australian exporters get their high-quality produce into key markets around the world.
– $150 million to support regional tourism, including South Australian tourism regions such as Kangaroo Island and the Eyre Peninsula.
“South Australians can be confident that the Government’s Economic Recovery Plan will create jobs, rebuild our economy and secure our state’s future,” Minister Birmingham said.
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