PATH TO REBUILDING FROM COVID PANDEMIC

safety initiatives around domestic violence such as emergency accommodation and legal services, as well as $25.7m to encourage women into science, technology, engineering and maths careers.

$2.7bn for a 50 per cent wage subsidy on 170,000 new apprenticeships and traineeships.

10,000 additional places for New Home Guarantee, allowing first-home buyers to secure a loan with a 5 per cent deposit.

$1.6bn in road and rail projects in Queensland, expected to create 2800 jobs.

There is $41bn in direct economic support.

Last year, Opposition treasury spokesman Jim Chalmers said the test for the budget would be employment and “if unemployment is too high for too long” it had failed.

This year’s budget forecasts unemployment to drop below 5 per cent by the end of next year, and to 4.5 per cent by July 2024, levels which have not been sustained since the 1970s.

“I’m confident this budget will create jobs, and I’m confident this budget will secure Australia’s economic future,” Mr Frydenberg said.

The personal income tax cuts mean not only will people pay less tax each week and get up to a $1080 rebate at tax time from last year’s cuts, but there will be an additional rebate of up to $1080 from next July as well.

The Treasurer said the tax relief was aimed at low and middle-income earners.

“They’re the tradies, the truckies, the teachers and the nurses earning $48,000 to $90,000,” he said.

“This year’s (tax cuts) are designed as a stimulus measure because we’re still we’re not out of the pandemic yet.”

He said previously announced stage 3 tax reforms, which mean 95 per cent of Australians will pay no more than 30c in the dollar, remained “legislated and affordable” despite the rising debt.

Extending the instant asset write-offs for 99 per cent of businesses for another year meant “a tradie can buy a new ute, a farmer a new harvester and a manufacturer expand their production line”.

There are innovative measures in the budget such as the patent box, giving a discounted company tax rate to medical and biotech companies on income they earn from new patents developed in Australia.

While Australia’s debt will continue to climb, it is at a slower rate than previously forecast.

In December, the deficit was forecast to be $198bn, but this has dropped to $161bn and will be down again to $106bn in July next year.

Gross debt was expected to be $852bn, but this was revised down to $829bn.

It will still reach $1.058 trillion by 2022-23.