Big-spending budget targets job-led recovery

Earlier this week the Victorian Treasurer delivered the State Government’s 2020-21 State Budget, which includes large scale investment to drive a jobs-led recovery.

It is estimated that COVID-19 has cost the State and Federal Government $257 billion, with an average loss of 1,200 jobs every day in the peak of the second wave. The 2020-21 Budget will see the Government spend $49 billion over four years in an effort to create 400,000 new jobs by 2025.

Key highlights of the budget include:

• $2.2 billion in the Suburban Rail Loop linking every major railway line between Frankston and Werribee, including a station at Melbourne Airport.
• $1.5 billion to redevelop the arts precinct in Melbourne, including building NGV Contemporary, a new branch of the National Gallery of Victoria.
• $1.4 billion set aside for the 100 next-generation trams.
• $5.3 billion Social Housing Fund which will result in the construction of 12,000 new homes.
• $892.2 million for the upgrade of 123 schools across the state.
• $526.2 million will go to Victoria’s Digital Future initiative to improve connectivity and digital innovation in Victoria.
• $465 million for the Victorian Tourism Recovery Package, including $47.5 million for infrastructure on the Great Ocean Road and $27.9 million for the Victorian Regional Travel Voucher scheme.
• $45.9 million expansion of the solar panel rebate and loans scheme.
• $12.9 million to provide R&D cash flow loans for SMEs to pay up to 80 per cent of their forecast refundable Federal Government R&D tax offsets.
• A payroll tax credit will be introduced to stimulate growth and increase employment for small and medium-sized businesses (payroll of less than $10 million).

For further details on the State Budget 2020-21 visit the Victorian Government website.

To discuss how the budget may benefit your business or individual circumstances call PPT on (03) 5331 3711.