On May 11th, as Australia’s federal budget 2021 was announced, the treasurer Josh Frydenberg made a very important statement, “Australia is coming back”. As the world is still grappling with a pandemic and the economic recovery is still heart-wrenchingly slow, Australia’s budget appears to show a relatively rosy picture, with focus on an array of fronts to further stimulate the economic recovery to the pre-crisis levels. With a present unemployment rate of 5.6 percent, Australia is faring far better compared to other advanced economies. While it’s anticipated that the unemployment rate will further fall by 4.5 percent as this budget gets implemented. Now, although economic recovery and unemployment rate is a broad term that is influenced by a variety of factors, in this blog we aim to highlight certain factors of the budget and discuss how it impacts the migration to Australia.
Firstly, this budget includes a plan worth over half billion dollars to attract investments from global businesses and talents around the world. It’s expected that this will drive job creation and bring in skilled workers that could accelerate the growth. They aim to achieve this by making changes to the existing tax laws and eliminating red tapes, so that start-ups can flourish in a more investment friendly environment and can hold on to skilled staff members. For instance, the instant asset write off has been extended for small businesses, therefore, if eligible, small businesses can immediately claim deductions. In addition to that, the Australian Tax Office will be providing ‘concierge’ services in order to expedite advising services for foreign inventors and make tax reporting easier for the Australian residents. To help retain the global talent, there are changes to the employee tax scheme rules, including removing the tax in point when one leaves the job, which means one can keep their shares without having to pay taxes at that point in time. Therefore, if you are an investor thinking for a safe destination to invest in, Australia does indeed fit all the right boxes to be called a safe investment destination.
Australia has performed very well in containing the virus and in this budget, it continues to unravel more strategy to help sustain the Covid containment and prevention measures. It has set aside an additional $1.9 billion for vaccines and a further $1.5 billion for any Covid associated medical expenses. Plans are also made to produce mRNA locally, which suggest huge opportunities for individuals and investors in the medical and pharmaceutical industry. With $1.7 billion allocated for childcare, it is anticipated that more individuals will be able to contribute to the economy by joining the workforce. Thus, households with working parents will be greatly benefited from this, as their costs on childcare diminishes and they get more favourable opportunities to invest in working.
Budgets are also allocated for infrastructural developments, and creating more jobs in the manufacturing sector. This indicates that construction and manufacturing companies will be greatly benefited in the coming years. Beside that, the world we currently live in thrives on digital innovation and development. Therefore, special focus has been put on the development of digital infrastructure and acquiring digital skills. In numbers, $1.2 billion is allocated for the Digital Economy Strategy. Therefore, if you have a business or a business idea that focuses on cybersecurity, artificial intelligence and other digital skills or knowledge, you might want to consider Australia as an investment sector as in the coming years Australia offers a great environment and opportunity for this kind of business.
Despite all these opportunities and a very welcoming environment, it is still important to remember that the repercussions of Covid is still lurking in the corner, and the Australian border with the rest of the world still remains shut. It’s expected to stay the same until mid next year, only with the assumption that the rest of the world will also be able to fare well with their virus containment and prevention measures. Given the intensity of this virus and the vigorous mutations reported, the picture of an open border appears to lie on a very thin egg-shell. But measures are taken to systematically bring people in. For instance, there are plans to bring in international students in small groups by the end of this year, while having a quarantining facility in place to help contain the spread of the virus. Although migration appears to be grim, that means international residents already on shore get a preference and if eligible they can apply for permanent residency.
It must be noted that, Covid has changed the way of life worldwide, not only in Australia. However, Australia still shines through as a country that dealt it with utter rigorousness and progressive strategy. As the county is gradually bouncing back to its pre-crisis level with a vigorous speed, it’s economic resilience evidently comes out as a leading force. Therefore, if you are currently thinking of investing in Australia, right now is a very good time to explore all the opportunities available to you. If you are an international resident currently onshore and looking for a permanent residency, this is a great time for you to go over the eligibility criteria and see where you fit in. We understand that immigration can be a very daunting process and you may need professional consultation to walk you through the process. If that sounds like you, do not hesitate to get in touch with us at Path Migration, where we promise to partner with you through this journey
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