Recently, the Treasurer of Australia announced the most generous budget in history, namely the new budget for Australia's 2020-2021 financial year. This budget covers all aspects of the lives of people living in Australia, with as much as AUD 98 billion allocated to projects closely related to people's livelihoods, including taxation, real estate, medical insurance, infrastructure, and other government-managed projects.
Personal Income Tax and Small Business Tax Cuts
According to the 2020-2021 budget, the tax threshold for the 19% personal income tax rate has been increased from AUD 37,000 to AUD 45,000, and the threshold for the 32.5% rate has been increased from AUD 90,000 to AUD 120,000! This means that those with an annual income between AUD 45,000 and AUD 90,000 will receive an additional tax refund of AUD 1,080 per year.
At the same time, small businesses severely affected by the pandemic will also see a tax relief plan. Changes to the instant asset write-off rules mean that 99% of businesses will be able to fully deduct the total cost of eligible depreciable assets. Businesses with an annual turnover of less than AUD 5 million will be able to use taxes paid on previous profits to offset losses. In addition, the government will implement credit reforms to ensure that businesses have easier access to debt financing.
Welfare Recipients Receive Another AUD 500 Subsidy
The budget also includes arrangements for welfare recipients! Pensioners, carer allowance recipients, double orphan pension recipients, disability support pensioners, family tax benefit recipients, and veteran card holders, among others, will receive a AUD 500 payment.
Investment Migration Quotas Doubled
The Australian government has made significant adjustments to immigration quotas. Compared to the 2019-2020 quotas, the Business Innovation and Investment program quotas for 2020-2021 have nearly doubled, from 7,400 to 13,500. Family migration quotas have increased to 77,300, and Global Talent visa quotas have increased to 15,000. In other words, while the total annual migration cap remains at 160,000, the quotas for investment migration have increased significantly.
Expansion of the First Home Loan Deposit Scheme
To further stimulate the development of Australia's construction industry, the new budget will expand the First Home Loan Deposit Scheme! An additional 10,000 Australians will be able to enjoy the benefits of this first home buyer incentive. These buyers can purchase properties with a deposit as low as 5%, with the government guaranteeing up to 15% of the loan. This scheme is valid until June 30, 2021.
In addition, the new budget explicitly states that the government will provide maximum economic support in areas such as aged care, road and rail upgrades, the revitalization of the manufacturing industry, and infrastructure investment.
It is evident from Australia's new federal budget that the country is going full throttle to restore its economy, and immigration may be an indispensable supplementary force on the road to Australia's economic recovery. As everyone knows, Australia's immigration policy has been continuously adjusted in recent years, and investment migration visas have consistently been in high demand! For those intending to immigrate to Australia, it is recommended to plan rationally in advance—apply early and secure your status sooner.
Currently, the Australian Significant Investor Visa (subclass 188C) is an Australian immigration program favored by high-net-worth individuals in China. Applicants who meet the AUD 5 million investment requirement can apply for immigration to Australia for their entire family and enjoy Australian medical benefits. After obtaining Australian permanent residency, children can enjoy high-quality education and gain broader horizons and opportunities for overseas development.
2020: The Year of Health Planning. Plan your health, secure your status first! For more details, please call our hotlines: Mainland China: 400-138-2929; Hong Kong, China: (852) 2802 8798.
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