Federal Leichhardt MP Warren Entsch said today Far North Queensland reap the benefits following the release of the Federal Budget last night by Treasurer Josh Frydenberg.

“We’re supporting Far North Queenslanders to get back to work and businesses to rebuild, grow, and create jobs,” he said.

He said the Government’s Economic Recovery Plan for Australia will create jobs, rebuild its economy and secure Australia’s future.

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“Under our plan, taxpayers in Leichhardt will get a tax cut backdated to 1 July this year.

“This means more money in the pockets of local households to assist with the cost of living, but also to help generate economic activity and create jobs,” said Entsch.

Entsch said since the onset of the pandemic, the government has provided $257 billion in direct economic support to cushion the blow and strengthen the recovery.

He added the 2020-21 Budget commits a further $98 billion including: $25 billion in direct COVID-19 response measures and $74 billion in new measures to create jobs.

JobKeeper is set to end in March, however, the JobMaker Hiring Credit is being introduced to get young people back to work.

The scheme will partially subsidise the wages of young employees who have been on JobSeeker, Youth Allowance or the Parenting Payment for at least one of the past three months.

Employers will get $200 each week for every employee hired after Wednesday aged between 16 and 29, and $100 each week for every employee aged between 30 and 35.

“The JobMaker Hiring Credit will be payable immediately to employers who hire eligible employees.

“This Budget is investing a record amount in skills and training to make sure Cairns and Far North Queensland job seekers have the skills they need to get a job.”

Mr Entsch said the government was further assisting first home buyers and the local construction sector.

The government, as part of the 2020-21 Budget, will bring forward stage two of its Personal Income Tax Plan by two years.

These measures include:

• the low income tax offset will increase from $445 to $700;·
• the top threshold of the 19 per cent tax bracket will increase from $37,000 to $45,000; and·
• the top threshold of the 32.5 per cent tax bracket will increase from $90,000 to $120,000.

Federal Leichhardt MP Warren Entsch said bringing forward stage two of our Personal Income Tax Plan will see thousands of Far North Queensland taxpayers get a tax cut backdated to 1 July 2020.

He said business will be supported with time limited tax incentives that will provide immediate expensing and loss carry-back.

“This will generate economic activity and create jobs by lowering the cost of investment,” Mr Entsch said.

Entsch said the Government will also provide additional targeted support to low- and middle-income Far North Queenslanders.

He said in 2020 21, low-and middle-income earners will receive a one-off additional benefit of up to $1,080 from the low and middle income tax offset.

“The LMITO was to be removed with the commencement of stage two, but the one off additional benefit in 2020-21 will provide support to households and stimulus to the economy,” he said.

“Together, bringing forward stage two and providing the additional LMITO means thousands of Far North Queensland taxpayers will get a tax cut, with effect from 1 July this year, providing them with more money to spend on what matters to them.

“As they spend their tax cuts this will help local businesses to keep their doors open and hire more staff.”

Eco tourism Australia CEO, Rod Hillman, said there was a lot to like in yesterday’s budget for tourism.

Strong support for regions, additional budget for Tourism Australia, support for tourism on the Great Barrier Reef and an attractive tax loss carry back initiative which will allow business to invest in their own recovery.

The Federal Government will devote more than $250 million to a Regional Tourism Recovery Package, which will include $100 million for infrastructure projects that boost regional tourism.

More than $50 million has been earmarked to attract domestic visitors to tourism hot spots heavily reliant on international travellers.

Tourism Australia will receive $231.6 million for marketing to promote domestic travel and to target international visitors when overseas travel restrictions are lifted.

The industry will also get a boost under the COVID-19 recovery fund, with $61.7 million to be invested in heritage upgrades, conservation work and reef building to create more fishing and diving spots.

However, Mr Hillman said the budget assumptions are optimistic and reliant on domestic borders reopening, an effective vaccine developed and delivered, and the tax breaks given to people being spent.

Mr Hillman said they were hoping for more on three major issues:

“With international borders projected to stay closed until 2021, regional tourism businesses, especially those more than a four-hour drive from a capital city really need further support.

“Many of these businesses have been closed an extended period of time and those in the north of Australia will need to wait till at least March 2021 for their season to start. JobKeeper has proven itself to be vital for these businesses, however the budget hasn’t recognised this.

“The tax loss carry back initiative is excellent for those tourism businesses that are operational and have the capacity to invest in their business. However, many are not. All business is trying to manage COVID restrictions, but a large number of tourism operators are also trying to recover from bushfires, drought and floods. It will be an enormous challenge for tourism businesses to now find further resources in order to take advantage of this initiative,” he said.