At a glance

Australia’s 2020 Federal Budget has been unveiled. It contains the next phase of measures to support the economy through the coronavirus pandemic and in the recovery. It focuses on supporting demand, businesses and job creation. 

For taxpayers

  • Bringing forward the stage 2 income tax cuts to 2020/21. The 32.5% tax rate kicks in at $45,001 (up from $37,001) and 37% tax rate begins at $120,001 (up from $90,001)
  • The low and middle tax offset has been extended for another year (worth up to $1,080 in 2020/21 for eligible taxpayers)

For businesses

  • Temporary full expensing of depreciable assets for businesses with turnover below $5 billion – with no limit on the value of assets
  • Business and wage incentives to hire young people (aged 16-35), apprentices and trainees

For infrastructure

  • Over the next four years, an additional $6.7 billion worth of infrastructure spending will be provided to the states and territories
  • An additional $3 billion will be spent through the Road Safety ($2 billion) and Local Roads and Community Infrastructure ($1 billion) Programs

For regional Australia

  • $550 million package to help regional Australia recover from the impacts of coronavirus
  • $250 million Regional Tourism Recovery Package
  • Additional $2 billion investment in the National Water Infrastructure Development Fund

Health and Aged Care

  • $1.7 billion to secure access to over 84.8 million doses of potential coronavirus vaccine candidates
  • Additional $2 billion in funding for ageing and aged care

Economic What to Watch video update

Yesterday, Federal Treasurer Josh Frydenberg, unveiled Australia's Federal Budget 2020-21. It contains the next phase of measures to support the economy through the coronavirus pandemic and in the recovery.

Here our Global Economic and Markets Research team outline what the Federal Budget might mean for you.

CommBank Global Economic & Markets Update podcast

Budget 2020/21 – Extraordinary times, extraordinary outcomes.

Latest report

Federal Budget analysis & reports

“Extraordinary” budget focuses on a jobs-led recovery

Businesses large and small, infrastructure, agriculture and housing feature in fiscal measures designed to lift the economy out of the coronavirus-induced recession.

A Tale of Two Pandemics: The Spanish Flu 1919-1920 - economic impacts and recovery

Exactly 100 years ago, another pandemic – the Spanish flu - brought the country to its knees. Despite the passing of time, economically and socially, the stories of then and now are somewhat similar.

Things you should know

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