What's within the funds? Listed below are an important measures we already know

Treasurer Josh Frydenberg is unveiling his third budget tonight, but as always, we already have a pretty good idea of ​​what's inside.

Pre-budget leaks are an established tradition, and this year was no exception.

Here are the main guidelines, announced earlier this evening, ahead of the Treasurer's budget speech.

International borders

The budget assumes that our international borders will remain closed at least until 2022.

Six months ago, when the budget was updated in October, the government expected the borders to reopen this year.

Since the Australian vaccination program (which is the responsibility of the federal government) has had significant problems in recent months, the government says it may not open our borders until next year at the earliest.

Hip pocket

The so-called "tax equalization for low and middle incomes" remains in place for another year.

The tax credit that employees receive after completing their tax returns varies for different income groups.

It should be ready on June 30th but will be extended for another 12 months.

A recent analysis by the Bankwest Curtin Economics Center found that 10 million workers would face an effective tax hike if the rebate were not extended beyond June 30 this year.

The majority of workers affected by this tax hike would be women.

The Australian tax system favors men over women

Woman hands over Australian money to a man.

The current political framework exacerbates income inequality between men and women.

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$ 1.7 billion in expanded childcare allowance.

The government will increase childcare spending to $ 1.7 billion over three years (the annual childcare budget is $ 10.3 billion).

However, the editions will not come into effect until July 2022.

When it starts, families benefit differently depending on their income, age and number of children.

As of today, childcare grants are capped at $ 10,560 (per child) if your family earns more than $ 189,390. The new policy removes this limit.

There are 200,000 families with incomes above this threshold who could benefit from the change.

The policy will also increase subsidies for families with two or more children under the age of five.

The subsidy increase (an additional 30 percent) applies to the second or subsequent child in care.

Childcare allowances increased

Unidentified children's hands playing with building blocks.

A look at the federal budget shows that childcare subsidies are increasing.

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For example, if the first child in care in a family is entitled to a 65 percent grant and the second child starts care at the same time, the second child is entitled to a 95 percent grant.

However, once the oldest child turns six (or leaves childcare), the 95 percent grant for the second child reverts to the lower existing rate.

The directive aims to stop the cost of doubling or potentially tripling the cost of childcare for families with multiple children being looked after.

Housing policy

With soaring house prices and the exodus of thousands of Australians across the country in search of affordable housing, housing has become a major concern.

The budget will include a number of measures in this area.

Single parents to get housing

Auction sign on house replaced with sold sign

Single parents will receive support from the federal government in purchasing real estate as part of the measures included in the budget for Tuesday.

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"Family Home Guarantee" for single parents:

Single parents receive support from the federal government when buying a home.

Under the program, a single parent can purchase an apartment with a 2 percent security deposit, with the government guaranteeing an additional 18 percent of the value of the loan.

The program will support up to 10,000 single parents and will extend over four years, with an average of 2,500 single parents per year.

The system is subject to caps on real estate prices.

& # 39; New Home Guarantee & # 39 ;:

The government will add an additional 10,000 singles and couples places to the New Home Guarantee.

The system allows first-time buyers to build a new home or buy a newly built home with a 5 percent security deposit, with the government guaranteeing up to 15 percent of the loan.

"First Home Super Saver Scheme" (FHSSS):

Right now under the FHSSS, anyone looking to save a deposit on their first home can make voluntary contributions to their retirement fund, which is capped at $ 15,000 per year, to take advantage of Super's special tax treatment.

The maximum they can save under the program is $ 30,000.

However, this cap is raised to $ 50,000 in the budget.


The $ 1 billion JobTrainer program is being extended for one year.

The package for 17- to 24-year-olds aims to create around 340,700 places nationwide for training school leavers or retraining young people who are currently looking for a job.

The program, which was announced in July last year, was supposed to expire in September but will run for another 12 months.

Elderly care

The budget will include the federal government's "full response" to the royal elderly care commission.

A funding program worth up to $ 18 billion for the next four years is reportedly announced.

Most of the money will be used to build better trained and paid geriatric carers.


The existing "Downsizer Program", which helps everyone aged 65 and over to increase their savings with proceeds from the sale of their family home, is being expanded to include people who turn 60.

The system introduced in the 2017-18 budget allows people aged 65 and over to make a one-time contribution to their super account worth up to $ 300,000 after the sale of their home, which does not conform to the normal rules for super tax treatment.

Starting July 1 of next year, people aged 60 and over can make Downsizer contributions to their Super.

In a separate measure, self-financed retirees will be able to increase their super savings more freely as the government will abolish the work test.

Super tax breaks not required for the rich

Graphic of a golden egg in a soft nest with the word

The review says wealthy savers should instead use their homes' equity to fund their retirement.

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The work test is currently valid for people between 67 and 74 years of age.

But it will be phased out for that age group on July 1, 2022, making it easier for them to replenish their super.

Brewers and Distilleries

Small brewers and distilleries will benefit from larger tax breaks to encourage more investment in the sector.

Currently, they can claim a 60 percent refund of the excise tax they paid, up to $ 100,000 per year.

Under the new rules, they can claim a full refund of the excise tax they paid, up to $ 350,000 per year.

It will reportedly triple the amount of alcohol producers that can be sold before the excise duty is payable.


An additional $ 10 billion will be spent on major infrastructure projects in all states and territories over the next decade.

US $ 2 billion will be allocated for a new freight hub in Melbourne and US $ 2 billion for the expansion of the Great Western Highway between Katoomba and Lithgow in New South Wales.

It also finances road projects in South Australia (Truro Bypass), Tasmania (Bass Highway), Northern Territory (National Highway Network) and ACT (William Hovell Drive), as well as rail and freight upgrades in Queensland and Western Australia.