2020-21 Federal Budget Announced
Our thanks to LPA for the below information and concise summary.
The Federal Government handed down the 2020-21 Budget on 6 October 2020.
An underlying cash deficit of $213.7 billion is forecast in 2020-21 (11% of GDP) and will reduce to a forecast deficit of $66.9 billion in 2023-24, resulting in an accumulated deficit of $480.5 billion over the forward estimates.
There were no new initiatives announced for the live performance industry, but this Budget confirms previously announced arts and entertainment funding:
- $250 million JobMaker plan to restart Australia’s creative economy
–$75 million: Seed Investment to Reactivate Productions and Tours – competitive grant funding in 2020-21 to provide capital to help production and event businesses to put on new festivals, concerts, tours and events. Grants will range from $75,000 through to $2 million.
– $35 million: Supporting Sustainability of Sector-Significant Organisations – direct support to Commonwealth-funded arts and culture organisations facing threats to financial viability.
– $90 million: Show Starter Loans – concessional loans to assist businesses to fund new productions and events that stimulate job creation and economic activity. To be delivered through commercial banks, backed by a 100 per cent Commonwealth guarantee.
– $50 million: Kick-starting Local Screen Production – a Temporary Interruption Fund to support local film and television producers secure finance and start production.
- $27 million of funding for Indigenous Arts, Regional Arts and Support Act
– $10 million to help regional artists and organisations develop new work and explore new delivery models. The funding will be delivered through Regional Arts Australia’s Regional Arts Fund.
– $7 million to support Indigenous artists and arts centres. The funding will be delivered under the Indigenous Visual Arts Industry Support program.
– $10 million to Support Act to provide mental health services.
- Perth City Deal, where the Federal Government is contributing $327.5 million over 11 years from 2020-21 to support projects.
The Minister for Communications, Cyber Safety and the Arts, the Hon Paul Fletcher MP, has issued a joint media release in response to the 2020-21 Budget.
The 2020-21 Budget outlines a range of economy-wide measures, including:
- Tax Relief
– Personal income tax relief: Stage 2 personal tax cuts brought forward to 2020-21. A one-off additional low to middle income tax offset in 2020-21.
– Temporary full-expensing (instant asset write off) – estimated at $200 billion worth of investment.
– Temporary loss carry-back – allowing companies with a loss of up to $5 billion to offset losses against previous profits on which tax has been paid.
- JobMaker Hire Credit – supporting 450,000 positions for young people at a cost of $4 billion.
- JobTrainer Skills package to further support and encourage apprentices and trainees with $1.2 billion Apprenticeships Wage Subsidy.
- Supporting Regional Australia – a $550 million package to support regional Australia recover from the impacts of COVID-19. This includes more than $250 million for a Regional Tourism Recovery Package and $100 million over two years will go towards Regional Recovery Partnerships.