Overview

In his speech introducing the 2022-23 Budget the Treasurer set out the next stage of the Government’s plan to meet the current and future economic and national security challenges confronting Australia.

 

While acknowledging that the past two years have been tough, the Treasurer said Australia has overcome the biggest economic shock since the Great Depression, now boasts the lowest unemployment rate in 48 years and is recovering at a rate stronger than the United States, the United Kingdom, Canada, France, Germany, Italy and Japan.

 

The 2022-23 Budget delivers targeted and immediate relief from rising cost of living pressures facing low and middle income earners, pensioners and concession card holders; support for small business; help for more single parents and first home buyers to buy a home; record funding for schools, hospitals, Medicare, mental health, aged care, women’s safety and disability support; new regional infrastructure initiatives; programs to boost Australia’s sovereign manufacturing capability; new apprenticeship initiatives; and further record spending on defence and cyber security capabilities in conjunction with further deepening of Australia’s strategic partnerships such as AUKUS and Quad.

 

The following brief provides further details of 2022-23 Budget announcements across portfolios.

 

Overview 1

Highlights 2

Portfolio Announcements 4

Finance and Treasury 4

Health 6

Aged Care 7

Defence 7

Women’s Safety and Economic Security 7

Employment 9

Education and Training 9

Home Affairs 10

Foreign Affairs, Trade and Tourism 10

Social Services 11

Infrastructure, Transport, Regional Development and Communications 12

Industry, Science, Energy and Resources 14

 

Portfolio Announcements

Finance and Treasury

Find the portfolio statement here (Finance) and here (Treasury)

 

Fuel Excise

• Rate of excise is currently 44.2 cents per litre, will be reduced to 22.1 cents per litre
  • Effective from 12.01am on 30 March 2022, will remain in place for 6 months, ending at 11.59pm on 28 September 2022.

 

Cost of Living Tax Offset

• Increase the Low and Middle Income Tax Offset (LMITO) to $420 for the 21-22 income year.
  • This increases maximum LMITO benefit to $1,500 for individuals and $3,000 for couples.

 

Employee Share Schemes

• Where employers make larger offers in connection with employee share schemes in unlisted companies, participants can invest up to:
  • $30,000 per participant per year, accruable for unexercised options for up to 5 years, plus 70% of dividends and cash bonuses; or
  • Any amount, if it would allow them to immediately take advantage of a planned sale or listing of the company to sell their purchased interests at a profit.

 

Modernisation of PAYG instalment systems

• Companies may choose to have their PAYG instalments calculated based on current financial performance, extracted from business accounting software, with some tax adjustments.
  • This will support business cash flow by ensuring instalments reflect current performance.

 

Patent Boxes

• Expand the patent box tax concession to agricultural sector innovations.
• Expand the patent box tax concession to low emissions technology innovations.

 

Primary Producers – Tax Treatment and Carbon Credits

• Proceeds from the sale of Australian Carbon Credit Units (ACCUs) and biodiversity certificates generated from on-farm activities will be allowed to be treated as primary production income for the purposes of the Farm Management Deposits (FMD) scheme and tax averaging from 1 July 2022.

 

Affordable Housing and Home Ownership

• The number of guarantees under the Home Guarantee Scheme increased to 50,000 per year for 3 years from 22-23, comprising:
  • 35,000 guarantees per year ongoing for the First Home Guarantee.
  • 5,000 places per year to 30 June 2025 for the Family Home Guarantee.
  • 10,000 places per year to 30 June 2025 for a new Regional Home Guarantee that will support eligible citizens and permanent residents who have not owned a home for 5 years to purchase a new home in a regional location with a minimum 5% deposit.

 

COVID-19 Economic Support

• $52.9 million in 21-22 to extend COVID-19 Business Support Payments and access to the Pandemic Leave Disaster Payment.

 

Single Touch Payroll Data

• $6.6 million for the development of IT infrastructure required to allow ATO to share single touch payroll data with State and Territory Revenue Offices.

 

Flood Package

• $240.5 million for 2 additional payments of the Australian Government Disaster Recovery Payment to residents in catastrophically impacted areas.
• $150 million from Emergency Response Fund to be shared between NSW and Queensland to fund recovery and post-disaster resilience measures in areas that experienced significant damage to infrastructure.
• $150 million from Emergency Response Fund to fund recovery and post-disaster resilience measures in the Northern Rivers region of NSW.
• $31.2 million to meet increased demand and support for the mental health of residents in flood affected areas.
• $25 million to increase the Community Child Care Fund.

 

Health

Find the portfolio statement here.

 

Pharmaceutical Benefits Scheme (PBS)

• $2.4 billion for new and amended listings on the PBS, including $475 million for cystic fibrosis treatments.
• $525.3 million to reduce the PBS Safety Net thresholds.

 

Mental Health

• $2.8 billion in mental health services, including initiatives in the regions, youth funding through headspace and improved access to multidisciplinary support.
• $52.3 million for Lifeline to provide mental health support.

 

Medicare and COVID-19

• $892.1 million to support access to health care.

 

Hospitals and COVID-19

• $984.0 million to extend activities under the National Partnership on COVID-19 Response.

 

COVID-19 vaccines and treatments

• $1.0 billion to increase COVID-19 booster uptake.
• As part of the $1.5 billion Modern Manufacturing Program, agreement has been reached with Moderna to establish an mRNA manufacturing facility in Victoria.

Cancer

• $423.7 million to support specialist facilities including a Cancer Centre in Perth.

 

Rural Health

• $224.4 million to improve access to health services in rural Australia, including extra funding for medical students to study in rural areas and support to RFDS, CareFlight and Little Wings to boost capacity.

 

Aged Care

Royal Commission into Aged Care Quality and Safety measures

• $468.3 million to further implement the Government’s response into the Royal Commission, including home care, quality and safety, boosting the workforce and governance.

Aged Care Covid-19 Response

• $458.1 million to support the aged care sector with managing the impacts of COVID-19.

 

Defence

Find the portfolio statement here.

 

Assistance to Ukraine 

• $156.6 million in for initial assistance to Ukraine, including: 
  • $91.1 million for lethal and non-lethal military material. 
  • $65 million in humanitarian assistance. 

 

Expanded Cyber and Intelligence Capability 

• $9.9 billion to the Australian Signals Directorate to enhance Australia’s cyber security capabilities.

 

Operation Flood Assist 

• $126.4 million for ADF deployments to support the Queensland and NSW Governments with search and rescue, clean up, and recovery.

 

Large Vessel Infrastructure 

$4.3 billion for a large-vessel dry-berth in Perth.

(Barton Deakin’s brief on this announcement can be found here). 

 

Defence Industry Support 

• $151.6 million to continue existing defence industry support programmes.

 

Women’s Safety and Economic Security

Women’s Economic Security Package

• $346.1 million to improve economic security for women by enhancing the Paid Parental Leave scheme by rolling Dad and Partner Pay into Parental Leave Pay to create a single scheme of up to 20 weeks, fully flexible and shareable for eligible working parents as they see fit.

 

Women’s Safety Package

• $1.3 billion to reduce all forms of family, domestic and sexual violence (FDSV) against women and children.
• Initiatives include:
  • $480.1 million for programs to support women and their children who are experiencing FDSV.
  • $328.2 million to extend and establish programs aimed at the early intervention and prevention of FDSV.
  • $290.9 million to extend and expand programs that support the recovery of FDSV victim survivors.
  • $222.6 million to strengthen initiatives to prevent gendered violence.

 

Women’s Leadership Package

• $106.9 million comprising:
  • $38.6 million to provide additional support for women who commence in trade occupations that are higher paying
  • $18.5 million to implement the recommendations of the review of gender equality, support state and territory governments to provide gender equity reporting and establish the Excellence in Workplace Gender Equity Awards.
  • $10.3 million to promote leadership, safety and employment opportunities for women in sport.
  • $9.4 million to bring women into board positions and fund the Future Women’s Jobs Academy.
  • $4.7 million to improve women’s participation and encourage women to consider a career in Australian manufacturing.

 

Women’s Health Package

• $163.3 million to improve women’s health and further support the implementation of the National Women’s Health Strategy 2020-2030 (the Strategy). 
• Funding includes: 
  • $39.8 million for the McGrath Foundation to continue the Breast Care Nurses Program.
  • $25.5 million to list new imaging technology on the Medicare Benefits Schedule for Endometriosis.
  • $16.4 million to establish endometriosis and pelvic pain general practice clinics in existing primary care settings in each state and territory.
  •  $11.2 million to increase stillbirth autopsies by creating dedicated Perinatal Pathologist positions in each state and territory.

 

Employment

Find the portfolio statement here.

 

Workforce Participation

• $153.5 million to address workforce shortages, support job seekers to find employment and make it easier for vulnerable Australians to participate in the workforce. 
• Funding comprises:
  • $52.8 million deliver the new ReBoot initiative and support Workforce Australia to support up to 5,000 disadvantaged young Australians to develop employability skills.
  • $49.5 million to provide additional 15,000 low and fee-free training places in aged care courses under the JobTrainer fund.
  • $44.6 million to support businesses who employ mature aged Disability Employment Services program participants through the Restart Wage subsidy.

 

Education and Training

Find the portfolio statement here.

 

University Research Commercialisation 

• $998.2 million to drive university-industry collaboration, workforce mobility and research translation and commercialisation. 
• This comprises:
  • $505.2 million to establish Australia’s Economic Accelerator (AEA) to support university research projects from proof-of-concept and proof-of-scale through to commercialisation. 
  • $295.2 million to establish new research training pathways for students and researchers creating opportunities to work with industry. 
  • $150 million to expand CSIRO Innovation Fund.

 

Skills Development 

• $1.3 billion to support employers to engage and retain new apprentices, and reform the Australian Apprenticeship system to sustain a skilled and responsive workforce. 
• Funding comprises:: 
  • $950.4 million for a new Australian Apprenticeships Incentive System providing support in priority occupations.
• $3.7 billion to increase investment in skills development and address critical skills needs. 

 

Home Affairs

Find the portfolio statement here.

 

Humanitarian Programme

• Maintain Humanitarian Program at 13,750 places in 22-23 and over forward estimates. 
• $665.9 million for an additional 16,500 humanitarian places for Afghan nationals. 

 

Arrangements for Managing Terrorist Offenders and Countering Violent Extremism 

• $148.4 milllion to prevent terrorism and counter violent extremism. 
• Funding includes: 
  • $66.9 million to to protect the community from threats posed by convicted high-risk terrorist offenders.
  • $19.8 million for a National Convicted Terrorist Offender Register. 
  • $24.5 million for a Living Safe Together program.

 

Transnational and Serious Organised Crime 

• $287.2 million to counter transnational, serious, and organised crime. 

 

Foreign Affairs, Trade and Tourism

Find the portfolio statement here.

 

Australian Export and Trade Support 

• $267.1 million to modernise and improve Australia’s trade system and support Australian exporters. 
• Funding comprises: 
  • $127.4 million to expand digital services to Take Farmers to Market initiative.
  • $80 million to support small and medium export businesses through the Export Market Development Grants Program. 

 

Comprehensive Strategic Partnership with India 

• $245.5 million to support the Comprehensive Strategic Partnership.

 

Tourism Support 

• $146.5 million to support the recovery of the tourism sector. 
• Funding includes: 
  • $76.7 million to extend the COVID-19 Consumer Travel Support Program.  
  • $63 million for targeted tourism marketing initiatives.

 

Social Services 

Find the portfolio statement here.

 

Financial Counselling Sector 

• $10.5 million to develop a voluntary industry funding model to meet the shortfall in general financial counselling services.

 

Cost of Living Payment 

• $1.5 billion to provide a $350 economic support payment to help eligible recipients.

 

Strong and Resilient Communities Grants

• $45.1 million to expand the Strong and Resilient Communities grant program.

 

Agriculture, Water and Environment

Find the portfolio statement here.

 

Agriculture 2030

• $135.6 million to strengthen biosecurity arrangements. 
• Funding includes:
  • $61.6 million to improve biosecurity capabilities, infrastructure and risk management activities across Northern Australia.
  •  $20.1 million to strengthen on-farm biosecurity by supporting the adoption of livestock traceability reforms.
  • $20.0 million to work with states and territories to reduce the impact of pests and weeds on agricultural production, native wildlife, the environment, and the community.
  • $15.4 million to extend the Supporting Agriculture Shows and Field Days program and support Agricultural Shows societies to upgrade, repair and maintain facilities that support regional agricultural shows.

 

Streamlining Environmental Protections and Modernising Indigenous Cultural Heritage Protections

• $139.6 million to modernise cultural Indigenous heritage protections, including:
  • $62.3 million to establish and administer up to 10 bioregional plans.
  • $27.9 million to ensure timely environmental assessments and approvals.

 

Future Proofing Australia’s Unique Landscapes, Animals and Plants

• $100.0 million for the Environment Restoration Fund to support community-driven action to protect and restore the environment.

 

Antarctica

Read Barton Deakin’s Brief on Australian Investment in Antarctica here. 

• $839.9 million to strengthen Australia’s and presence in Antarctica.

 

Great Barrier Reef 

• $1.0 billion for the protection of the Great Barrier Reef, including:
  • $579.9 million to improve the water quality of the Reef.
  • $252.9 million to improve the sustainable management and protection of reef ecosystems.

 

Future Drought Fund 

• $84.5 million to improve drought readiness.

 

Murray-Darling Basin

• $139.9 million to enhance  Murray-Darling Basin sustainability, including:
  • $97.0 million for community-driven infrastructure projects.
  • $35.1 million to better deliver environmental water.

Circular Waste Economy

• $83.1 million to support the transformation of Australia’s waste and recycling sector.

 

Infrastructure, Transport, Regional Development and Communications

Find the portfolio statement here

 

Energy Security and Regional Development Plan

• $7.1 billion for four key regional hubs across Australia:
  • NT: support for manufacturing, onshore processing of minerals and strengthen its position as an industrial and renewable energy hub.
  • North and Central QLD: invest in water infrastructure and supply chain projects.
  • Pilbara, WA: infrastructure support for mining, mineral processing, manufacturing and the hydrogen industry.
  • Hunter, NSW: transport infrastructure projects to improve supply chains.

 

Regional Telecommunications

• $1.3 billion to improve regional telecommunications, including:
  • $811.8 million for the Mobile Black Sport Program and the Regional Connectivity Program.
  • $480 million for NBN Co to upgrade network services in regional Australia.

 

Priority Infrastructure Investments

• $1.5 billion to fund projects including:
  • $678.0 million in additional funding for the Outback Way, NT.
  • $385.4 million in additional funding for the Northern Australia Roads Program.

 

State and Territory Infrastructure Investment

• See p.106 of the Budget Paper No.2 for projects in the Australian Capital Territory (ACT)

• See p.106-107 of the Budget Paper No.2 for projects in New South Wales (NSW)

• See p.108 of the Budget Paper No.2 for projects in the Northern Territory (NT)

• See p.109-110 of the Budget Paper No.2 for the projects in Queensland (QLD)

• See p.110-111 of the Budget Paper No.2 for the projects in South Australia (SA)

• See p.111 of the Budget Paper No.2 for the projects in Tasmania (TAS)

• See p.112 of the Budget Paper No.2 for the projects in Victoria (VIC)

• See p.113 of the Budget Paper No.2 for the projects in Western Australia (WA)

 

Local Roads and Community Infrastructure Program

• $501.7 million to support local government to maintain and deliver social infrastructure, road safety and resilience of the road network.

 

Water Grid funding

• $6.9 billion to expand investment in transformational water infrastructure projects, including:
  • $5.4 billion for Hells Gates Dam, QLD.
  • $600.0 million for Paradise Dam, QLD.
  • $433.0 million for Dungowan Dam, NSW.

 

Northern Australia Infrastructure Facility (NAIF)

• $2.0 billion to finance critical infrastructure projects.

 

Regional Accelerator Program (RAP)

• $2.0 billion to establish the RAP, including the Modern Manufacturing Initiative, Australian Apprenticeships, Export Market Development Grants and the Recycling Modernisation Fund.

 

Industry, Science, Energy and Resources

Find the portfolio statement here.

 

Energy Security and Regional Development Plan

• $7.1 billion for infrastructure projects that connect infrastructure and supply chains in four  key regional hubs across Australia.

Modern Manufacturing 

• $250.0 million to extend the Modern Manufacturing Initiative to support businesses to deliver high-impact projects.

 

Critical Minerals Strategy

• $250.5 million to help early-stage critical minerals projects reach market readiness, including $200.0 million for the Critical Minerals Accelerator Initiative.

 

Energy and Emissions Reduction

• $446.1 million to increase energy security, maintain affordable and reliable power for households and businesses and reduce the cost of deploying low emissions technologies, including:
  • $247.1 million to support increased private sector investment in low emissions technologies.
  • $148.6 million  to support greater investment in affordable and reliable power in regional Australia.
  •  $50.3 million to accelerate the development of priority gas infrastructure projects.

 

For further information, please contact David Alexander on +61 457 400 524, or Andrew Humpherson on +61 419 241 587.