2021 Federal Budget
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In the wake of the Covid-19 pandemic the Federal Budget, released this week, is strongly focused on stimulating job growth and lowering the unemployment rate. The Federal Government has set a lofty goal of reducing unemployment to under 5%, meaning significant investment in initiatives to stimulate jobs growth, including:
$1.7 billion childcare package that will remove the subsidy caps for high-income earners and reduce childcare costs for families with two or more children in care in 2022.
$550 million skilled migration package making changes to tax rules and making it easier for businesses to attract skilled talent from overseas.
Student visa changes allowing international students to work up to 40 hours per week in the hospitality and tourism sector.
$1 billion JobTrainer extension with the program offering free or low-fee courses in industries suffering shortages, such as aged care, childcare and IT, being extended for a further 12 months.
$120 million deregulation package to invest in regulation technology aimed at simplifying the process of complying with award pay and conditions.
Confirmation of the superannuation guarantee increase from 9.5% to 10% on 1 July 2021. The superannuation guarantee rate will continue to rise by 0.5% per year thereafter until it reaches 12% by 2025.
Removal of the superannuation $450 minimum threshold to be eligible for superannuation payments. Employees will be entitled to employer-paid superannuation regardless of the amount they earn per month however this is not expected to come into effect before July 2022.
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