The Aussie Budget 2021: What does it mean for job seekers and students?
The government announced the 2021 federal budget on Tuesday 11th of May.
Coming just over 6 months after last years delayed October budget, the 2021 – 2022 budget focuses on growth and spending to stimulate the economy and employment rate steering away from the austerity of previous coalition budgets.
In the budget delivery on Tuesday night, federal treasurer Josh Frydenburg focused on the positive recovery of Australia’s economy following the turbulence of the COVID-19 health crisis saying,
“Australia’s economic recovery is well underway, and we must keep the momentum going.”
The budget figures are surprisingly measured and notably less austere than previous coalition government’s budgets with a focus on healthcare and economic stimulation through tax offsets and small business support programs.
There were a lot of interesting takeaways from the budget.
An additional $1.9 billion has been added to the budget for the COVID -19 Vaccine rollout to assist with testing, vaccine rollout and fever clinics.
The Government has tried to come to the party for women after the questionable handling of recent rape allegations, announcing a $3.4 billion package to boost women’s safety, health and economic security including $1.7 billion over 5 years for cheaper childcare for those with more than one kid in childcare.
A total of $7.2 billion will be used to extend a low to mid income tax offset. If you’re earning between $48,000 and $90,000 you’ll be getting an extra $1,080 if your single and an extra $2,160 if you’re a couple.
$2 billion was announced for mental health and suicide prevention service over the next two years.
In response to the Royal Commission into aged care, the coalition has announced $17.7 billion over the next five years for aged care. This includes $6.5 billion for homecare packages but this still won’t address 100,000 strong waiting list for these packages with this budget accommodating only 80,000 homecare packages.
And a whopping $15.2 billion over the next 10 years for infrastructure.
But what about Job seekers, how will the changes in budget affect you if you’re looking for work at the moment?
Job Seekers may find looking for a work a little harder with a 1.1 billion cut to the budget for Job Active support.
Shifting job seekers from the Job active system to the newly implemented NESM system or New Employment Services Mode. This will get digitally savvy job seekers to self-manage their job searching activities through an online portal for 12 months before being offered additional casework and support.
However, the Job Maker program is being extended for another 12 months which should help create additional employment opportunities and reduce the pressure on small business.
$699.6 million which was saved from the NESM system switch will go into the existing specialist job seeker support programs such as the Youth Transition to work program and the New Enterprise Incentive Scheme Program.
What should students know about this budget?
In the education sector, it’s a mixed bag from this year’s budget with $400 million in cuts to university funding but $1.6 billion announced in the budget over the next four years for commonwealth preschool funding.
The best news in the budget for the adult education sector is that they are doubling down on their commitment to the Job Trainer fund, with more 450,000 new training places to upskill job seekers and young people. They announced the figure with the predicted 2.7 billion spend in the budget for the program.
The Liberal party are confident this budget and the associated programs will stimulate job growth with a forecasted additional 250,000 jobs and a predicted drop in the jobless rate from 5.6% to 5%. There are hopes among the party that this will drive up median wages.
Are you a job seeker looking to change careers?
If you’re a job seeker looking for a new career path you may be eligible for Certificate 3 Guarantee funding to undertake a Certificate II or III level qualification at Asset College. Our programs are aligned to employment outcomes with information sessions and referrals to employers through our Employer Connections programs.
If you’d like to have a chat about your options for training, contact us today.