The policy measures outlined in today’s Federal Budget are what the Coalition Government believes will pull our nation out of its first recession in nearly 30 years.

But the nation is now facing a $214 billion deficit, the highest deficit since World War II.

2020 Budget Winners

The Government is bringing forward tax cuts originally scheduled for July 2021 in a $17.8 billion move.

This is one phase of the Government’s three-step tax overhaul plan, announced in the 2019 Budget.

• The first stage delivered tax offsets of up to $1,080 to average income earners.
• The second stage, originally scheduled for July 2022, sees the 19 per cent threshold increase from $41,000 to $45,000 and the 32.5 per cent threshold jump from $90,000 to $120,000.

This stage is being brought forward, to begin immediately. The tax cuts will be backdated to 1 July 2020.

Additionally, the Government plans to keep the low- and middle-income tax offset for another year.

That means Australians earning $120,000 or more will get $2,745 back, those making $80,000 will get $2,160 back and those earning $40,000 will get $1,060 back.

• The third stage is still due to come into place from July 2024 and sees the 32.5 per cent threshold increased all the way up to those earning $200,000.