On Tuesday night the Federal Government unveiled their big spending plan to navigate the economic disaster from the coronaviris crisis. Below are some of the big winners and losers that are affected by this new budget.
WINNERS
Hospitality Venues:
The Treasurer wants NSW to get out and about to restaurants, cafes and clubs and they are willing to give $100 for people to do so. Adults in NSW will get a $25 digital vouchers to spend on entertainment and dining.
Tradies:
Tradies will receive projects that have a value of $107 billion which can include hospital upgrades and transport projects. The construction boom will create a total of 270000 jobs over a four year period.
Education:
In 2021 students will receive free tutoring which provide extra support after a disruptive school year. An additional 5,500 staff will be employed to provide a small group tuition at all the NSW public Schools and non-government funded schools.
Business:
Businesses that are in arts, dining, and entertainment sector are set to benefit from a $500 million voucher program designed to stimulate the economy by encouraging people spend and be more social. Although, the hotel industry will not benefit from this voucher scheme.
LOSERS
Economy:
The economy has taken a massive hit during the COVID-19 pandemic. The NSW budget has plunged into a $16 billion deficit and is not expected to return to surplus until 2024. An overall of $29 billion has been spend by the government during the COVID-19 pandemic.
GST Income:
The economic uncertainty and lockdowns during the course of the pandemic have caused GST in NSW to be at a loss of $3.2 billion during the FY2020-21. Due to the weak shift and growth in spending have already placed GST revenue under pressure in recent years.
Public Servants:
Due to the coronavirus pandemic public servants usually receive 2.5% wage increase, by they are one of the groups to lose out. The government sector is cutting public sector wage rises by 1%.
If you have any queries with respect to this offer, simply get in touch with us here at Fortis Accounting Partners!
