Federal Budget 2022-23

As most of you will certainly know, last night, the Treasurer handed down the 2022-23 Federal Budget.

For your information, I’ve included a summary of the key budget measures announced, as well as the overall economic update contained within the budget papers.

Key Highlights

While the main news highlights will no doubt be the cut to the fuel excise, and the cost of living measures ($250 handout and extra $420 to the Low – Middle Income Tax Offset), there are a number of measures (some good, some bad) that are interesting and looking forward to utilising with you at Tax Planning time.

Let’s get into it…

Economic Update

Forecast Budget Positions

• 2021-22 -$79.8bn deficit (down from -$106.6bn and -$112.0bn previously forecasted)
• 2022-23 -$78.0bn deficit (down from -$99.3bn previously forecasted)
• 2023-24 -$56.5bn deficit
• 2024-25 -$47.1bn deficit
• 2025-26 -$43.1bn deficit

GDP

• 2021-22 4.25% (down from 4.75% previously forecasted)
• 2022-23 3.50% (up from 2.50% previously forecasted)
• 2023-24 2.50%
• 2024-25 2.50%
• 2025-26 2.50%

Unemployment Rate

• 2021-22 4.00% (down from 5.00% and 6.50% previously forecasted)
• 2022-23 3.75% (down from 4.75% previously forecasted)
• 2023-24 3.75%
• 2024-25 3.75%
• 2025-26 4.00%

CPI

• 2021-22 4.25% (up from 1.50% previously forecasted)
• 2022-23 3.00% (up from 2.25% previously forecasted)
• 2023-24 2.75%
• 2024-25 2.75%
• 2025-26 2.50%

Gross Debt

• 2021-22 $906bn
• 2022-23 $977bn
• 2023-24 $1.056tn
• 2024-25 $1.117tn
• 2025-26 $1.169tn

Net Debt

• 2021-22 $631.5bn
• 2022-23 $714.9bn
• 2023-24 $772.1bn
• 2024-25 $823.3bn
• 2025-26 $864.7bn

ATO-specific Budget Measures

Tax Integrity – extension of the Australian Taxation Office Tax Avoidance Taskforce

The Government will provide $325.0 million in 2023-24 and $327.6 million in 2024-25 (a total of $652.6 million) to the ATO to extend the operation of the Tax Avoidance Taskforce by 2 years to 30 June 2025. This measure is estimated to increase receipts by $2.1 billion.

The Taskforce was established in 2016 to undertake compliance activities targeting multinationals, large public and private groups, trusts and high wealth individuals. It also scrutinises specialist tax advisors and intermediaries that promote tax avoidance schemes and strategies.

Cost of Living Pressure Measures

Fuel Excise reduction

The Government will help reduce the burden of higher fuel prices at home by halving the excise and excise equivalent customs duty rate that applies to petrol and diesel for 6 months. The excise and excise-equivalent customs duty rates for all other fuel and petroleum-based products, except aviation fuels, will also be reduced by 50 per cent for 6 months.

The measure will commence from 12.01am on 30 March 2022 and will remain in place for 6 months, ending at 11.59pm on 28 September 2022.

Under the measure, existing policy settings for fuel excise and excise-equivalent customs duty, including indexation in August, will continue but on the basis of the halved rates. At the conclusion of the 6 month period the excise and excise-equivalent customs duty rates will then revert to previous rates, including indexation that would have occurred on those rates during the 6 month period.

The rate of excise and excise-equivalent customs duty currently applying to petrol and diesel is 44.2 cents per litre. This measure will halve the rate on petrol and diesel to 22.1 cents per litre from 30 March 2022, with the price faced by consumers expected to be reduced by a larger magnitude given GST will be levied on the lower excise rate.

The Australian Competition and Consumer Commission will monitor the price behaviour of retailers to ensure that the lower excise rate is fully passed on to Australians.

Cost of Living Payment

The Government will provide $1.5 billion in 2021-22 to provide a $250 economic support payment to help eligible recipients with higher cost of living pressures. The payment will be made in April 2022 to eligible recipients of the following payments and to concession card holders:

• Age Pension
• Disability Support Pension
• Parenting Payment
• Carer Payment
• Carer Allowance (if not in receipt of a primary income support payment)
• Jobseeker Payment
• Youth Allowance
• Austudy and Abstudy Living Allowance
• Double Orphan Pension
• Special Benefit
• Farm Household Allowance
• Pensioner Concession Card (PCC) holders
• Commonwealth Seniors Health Card holders
• Eligible Veterans’ Affairs payment recipients and Veteran Gold card holders.

The payments are exempt from taxation and will not count as income support for the purposes of any income support payment. A person can only receive one economic support payment, even if they are eligible under 2 or more of the categories outlined above.

Fringe Benefits Tax Changes

No Specific Budget Measures announced.

Individual Income Tax Rate Changes

Cost of Living Tax Offset (increase to the LMITO for the 2022 financial year)

The Government will increase the low and middle income tax offset (LMITO) for the 2021-22 income year.

The LMITO for the 2021-22 income year will be paid from 1 July 2022 when Australians submit their tax returns for the 2021-22 income year. This proposal will increase the LMITO by $420 for the 2021-22 income year. This increases the maximum LMITO benefit in 2021-22 to $1,500 for individuals and $3,000 for couples.

Other than those that do not require the full offset to reduce their tax liability to zero, all LMITO recipients will benefit from the full $420 increase. All other features of the current LMITO remain unchanged. Consistent with the current LMITO, taxpayers with incomes of $126,000 or more will not receive the additional $420.

The same phase-in and phase-out rules that currently applies to the LMITO will remain.

Note – the LMITO has not been extended to the 2023 financial year.

COVID-19 Response Package – tax deductibility of COVID-19 test expenses

The Government will ensure that the costs of taking a COVID-19 test to attend a place of work are tax deductible for individuals from 1 July 2021. In making these costs tax deductible, the Government will also ensure fringe benefits tax (FBT) will not be incurred by businesses where COVID-19 tests are provided to employees for this purpose.

Increasing the Medicare Levy Low-Income Thresholds

The Government will increase the Medicare levy low-income thresholds for seniors and pensioners, families and singles from 1 July 2021. The increase in thresholds takes account of recent movements in the consumer price index so that low-income individuals continue to be exempt from paying the Medicare levy.

The threshold for singles will be increased from $23,226 to $23,365. The family threshold will be increased from $39,167 to $39,402. For single seniors and pensioners, the threshold will be increased from $36,705 to $36,925.

The family threshold for seniors and pensioners will be increased from $51,094 to $51,401. For each dependent child or student, the family income thresholds will increase by a further $3,619 instead of the previous amount of $3,597.

Varying the GDP uplift factor for tax instalments

The Government has decided to set the GDP uplift factor for pay as you go (PAYG) and GST instalments at 2 per cent for the 2022-23 income year. This uplift factor is lower than the 10 per cent that would have applied under the statutory formula.

The lower uplift rate will provide cash flow support to small businesses, including sole traders, and other individuals with investment income, helping them to invest and grow. Around 2.3 million taxpayers are expected to benefit from this measure.

The 2 per cent GDP uplift rate will apply to small to medium enterprises eligible to use the relevant instalment methods (up to $10 million annual aggregated turnover for GST instalments and $50 million annual aggregated turnover for PAYG instalments) in respect of instalments that relate to the 2022-23 income year and fall due after the enabling legislation receives Royal Assent.

Small Business Budget Measures

Small Business – skills and training boost

The Government is introducing a skills and training boost to support small businesses to train and upskill their employees. The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2024.

Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of expenditure incurred on external training courses provided to their employees. The external training courses will need to be provided to employees in Australia or online, and delivered by entities registered in Australia.

Some exclusions will apply, such as for in-house or on-the-job training and expenditure on external training courses for persons other than employees.

The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2024, will be included in the income year in which the expenditure is incurred.

This measure is estimated to decrease receipts by $550.0 million, and increase payments by $7.0 million over the forward estimates period.

Small Business – technology investment boost

The Government is introducing a technology investment boost to support digital adoption by small businesses. The boost will apply to eligible expenditure incurred from 7:30pm (AEDT) on 29 March 2022 (Budget night) until 30 June 2023.

Small businesses (with aggregated annual turnover of less than $50 million) will be able to deduct an additional 20 per cent of the cost incurred on business expenses and depreciating assets that support their digital adoption, such as portable payment devices, cyber security systems or subscriptions to cloud-based services.

An annual cap will apply in each qualifying income year so that expenditure up to $100,000 will be eligible for the boost.

The boost for eligible expenditure incurred by 30 June 2022 will be claimed in tax returns for the following income year. The boost for eligible expenditure incurred between 1 July 2022 and 30 June 2023 will be included in the income year in which the expenditure is incurred.

This measure is estimated to decrease receipts by $1.0 billion, and increase payments by $7.2 million over the forward estimates period.

Varying the GDP uplift factor for tax instalments

The Government has decided to set the GDP uplift factor for pay as you go (PAYG) and GST instalments at 2 per cent for the 2022-23 income year. This uplift factor is lower than the 10 per cent that would have applied under the statutory formula.

The lower uplift rate will provide cash flow support to small businesses, including sole traders, and other individuals with investment income, helping them to invest and grow. Around 2.3 million taxpayers are expected to benefit from this measure.

The 2 per cent GDP uplift rate will apply to small to medium enterprises eligible to use the relevant instalment methods (up to $10 million annual aggregated turnover for GST instalments and $50 million annual aggregated turnover for PAYG instalments) in respect of instalments that relate to the 2022-23 income year and fall due after the enabling legislation receives Royal Assent.

Small Business Support Package

The Government will provide $25.2 million over 3 years from 2021-22 to deliver initiatives to support small businesses. Funding includes:

• $10.4 million over 2 years from 2022-23 to enhance and redesign the Payment Times Reporting Portal and Register to improve efficiency and reporting
• $8.0 million in 2022-23 to the Australian Small Business and Family Enterprise Ombudsman to work with service providers to enhance small business financial capability
• $4.6 million over 2 years from 2021-22 to support the New Access for Small Business Owners program delivered by Beyond Blue to continue to provide free, accessible, and tailored mental health support to small business owners
• $2.1 million over 2 years from 2021-22 to extend the Small Business Debt Helpline program operated by Financial Counselling Australia to continue to provide financial counselling to small businesses facing financial issues.

Superannuation Budget Measures

Supporting Retirees – extension of the temporary reduction in superannuation minimum drawdown rates

The Government has extended the 50 per cent reduction of the superannuation minimum drawdown requirements for account-based pensions and similar products for a further year to 30 June 2023.

The minimum drawdown requirements determine the minimum amount of a pension that a retiree has to draw from their superannuation in order to qualify for tax concessions. Given ongoing volatility, this change will allow retirees to avoid selling assets in order to satisfy the minimum drawdown requirements.

Other Business Measures

Boosting Participation and Building Australia’s Workforce

The Government will provide $153.5 million over 5 years from 2021-22 to address workforce shortages, support job seekers to find employment, and make it easier for vulnerable Australians to participate in the workforce. Funding includes:

• $52.8 million over 5 years from 2021-22 to deliver the new ReBoot initiative and support Workforce Australia to support up to 5,000 disadvantaged young Australians to develop employability skills, providing a pathway to employment services and training opportunities
• $49.5 million over 2 years from 2022-23 to provide an additional 15,000 low and fee-free training places in aged care courses under the JobTrainer Fund
• $44.6 million over 2 years from 2022-23 to continue support for businesses who employ mature-aged Disability Employment Services program participants through the Restart Wage Subsidy
• $3.2 million in 2022-23 to extend the Time to Work Employment Services program for 12 months to provide continued in-person pre-employment services for Aboriginal and Torres Strait Islander prisoners
• $1.9 million over 5 years from 2021-22 to extend the pension suspension period and Pensioner Concession Card access period to 2 years for pensioners that receive a nil payment due to their partner’s employment income or working hours, where this has also resulted in the suspension of their partner’s pension for up to 2 years
• $1.5 million in 2022-23 to extend the trial of career coaching for job seekers of all ages participating in Digital Services under Workforce Australia. The trial will provide career coaching to digitally serviced job seekers, to help them secure employment
• Expanding eligibility for the Local Recovery Fund to include job seekers self-managing through Digital Services under Workforce Australia from 1 July 2022.

Deferral of Shadow Economy – strengthening the Australian Business Number system measure

The Government will defer the start date of the Black Economy – strengthening the Australian Business Number (ABN) system measure, announced in the 2019-20 Budget, by 12 months to assist with integration into the Australian Business Registry Services (ABRS).

Investing in Skills Development and Growing Australia’s Workforce

The Government will provide $1.3 billion over 5 years from 2021-22 to support employers to engage and retain new apprentices, and reform the Australian Apprenticeships system to sustain a skilled and responsive workforce. This funding includes:

• $954.0 million over 5 years from 2021-22 to introduce a new Australian Apprenticeships Incentive System from 1 July 2022, providing support to employers and apprentices in priority occupations
• $365.3 million to extend the Boosting Apprenticeship Commencements and Completing Apprenticeship Commencements wage subsidies by 3 months to 30 June 2022, to further support employers taking on and retaining new apprentices
• $2.8 million in 2022-23 to increase apprenticeship In-Training Support by an additional 2,500 places for young Australians aged 15-20 years.

Commonwealth’s De-Regulation Agenda

The Government continues to reform Australia’s regulatory environment to ensure our economy remains productive, competitive and agile. Funding includes:

• $52.5 million over 5 years from 2021-22 to reduce regulatory burden for industry in the environmental assessment process through the national rollout of the Digital Environmental Assessments Program, supported by a National Biodiversity Data Repository
• $47.3 million over 15 years from 2021-22 to the Clean Energy Regulator to simplify existing compliance and assurance activities for the Emissions Reduction Fund and the Renewable Energy Target to reduce manual compliance reporting
• $19.9 million over 4 years from 2021-22 to the Australian Bureau of Statistics to develop a new reporting application to enable businesses to submit surveys on business indicators directly through their accounting software
• $17.5 million over 3 years from 2021-22 to enhance the digital capability of Australia’s offshore oil and gas regulator and titles administrator
• $11.2 million over 5 years from 2021-22 to continue work in reducing the regulatory burden for business arising from compliance with mandatory safety and information standards under Australian Consumer Law
• $1.4 million over 2 years from 2022-23 to the Attorney-General’s Department to progress a national approach to modernise the execution of common legal documents.

The Government will forgo receipts of $64.9 million over 3 years from 2023-24 to streamline fees associated with Australia’s Business Registers as company registration and lifecycle management moves to the modernised platform (scheduled for September 2023). These reforms will:

• Remove the companies annual late review fee
• Reduce the number of fees paid for ad hoc lodgements under current requirements
• Remove fees for searches conducted on the new registry website
• Provide $0.3 million to the Department of Treasury to redesign wholesale business register search services (facilitated by third-party services).

COVID-19 Response Package – making COVID-19 business grants non-assessable non-exempt

The Government has extended the measure which enables payments from certain state and territory COVID-19 business support programs to be made non-assessable non-exempt (NANE) for income tax purposes until

30 June 2022. This includes the:

• Queensland 2021 COVID-19 Business Support Grant
• New South Wales Accommodation Support Grant
• New South Wales Commercial Landlord Hardship Grant
• New South Wales Performing Arts Relaunch Package
• New South Wales Festival Relaunch Package
• New South Wales 2022 Small Business Support Program

COVID-19 Response Package – tax deductibility of COVID-19 test expenses

The Government will ensure that the costs of taking a COVID-19 test to attend a place of work are tax deductible for individuals from 1 July 2021. In making these costs tax deductible, the Government will also ensure fringe benefits tax (FBT) will not be incurred by businesses where COVID-19 tests are provided to employees for this purpose.

Digitalising trust income reporting and processing

The Government will digitalise trust and beneficiary income reporting and processing, by allowing all trust tax return filers the option to lodge income tax returns electronically, increasing pre-filling and automating ATO assurance processes.

The measure will commence from 1 July 2024, subject to advice from software providers about their capacity to deliver.

Trust income reporting and assessment calculation processes have not been automated to the same extent as individual or company tax returns, resulting in longer processing times and limited pre-filling opportunities. This measure will reduce the compliance burdens on taxpayers, reduce processing times and enhance ATO processes.

The Government will consult with affected stakeholders, tax practitioners and digital service providers to finalise the policy scope, design and specifications.

Employee Share Schemes – expanding access and further reducing red tape

The Government will expand access to employee share schemes and further reduce red tape so that employees at all levels can directly share in the business growth they help to generate.

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 per cent 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.

The Government will also remove regulatory requirements for offers to independent contractors, where they do not have to pay for interests.

Primary Producers – increasing concessional tax treatment for carbon abatement and biodiversity stewardship income

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

The Government will also change the taxing point of ACCUs for eligible primary producers to the year when they are sold, and extend similar treatment to biodiversity certificates issued under the Agriculture Biodiversity Stewardship Market scheme, from 1 July 2022. Eligible primary producers are those who are currently eligible for the FMD scheme and tax averaging.

Reducing compliance costs for business through enhanced sharing of Single Touch Payroll data

The Government will commit $6.6 million over the forward estimates period for the development of IT infrastructure required to allow the ATO to share single touch payroll (STP) data with State and Territory Revenue Offices on an ongoing basis.

The funding will be deployed following further consideration of which states and territories are able and willing to make investments in their own systems and administrative processes to pre-fill payroll tax returns with STP data, to reduce compliance costs for businesses.

“Smarter” reporting of Taxable Payments Reporting System data

The Government will allow businesses the option to report Taxable Payments Reporting System data (via accounting software) on the same lodgement cycle as their activity statements. Note – for most businesses, this will mean preparing and lodging your TPAR report four times and year instead of once a year.

Subject to advice from software providers about their capacity to deliver, it is anticipated that systems will be in place by 31 December 2023, with the measure to commence on 1 January 2024, for application to periods starting on or after that date.

This measure will increase the accuracy and timeliness of reporting while lowering compliance costs for taxpayers.

The Government will consult with affected stakeholders, tax practitioners and digital service providers to finalise the policy scope, design and specifications of the measure.

Tourism Support

The Government will provide $146.5 million over 3 years from 2021-22 to support the recovery of the Australian tourism sector as part of the Government’s response to the COVID-19 pandemic. Funding includes:

• $76.7 million over 2 years from 2021-22 to extend the COVID-19 Consumer Travel Support Program to support travel agents and tour arrangement service providers
• $63.0 million over 3 years from 2021-22 to accelerate international tourist and backpacker arrivals through targeted marketing initiatives
• $6.8 million over 3 years from 2021-22 for increased data availability and analysis to improve planning in the tourism sector and to establish an employment platform to promote career opportunities in the sector.

Other Notable Budget Measures

Patent Box – expanding the Patent Box tax concession to agricultural sector innovations

The Government will expand the patent box, announced in the 2021-22 Budget and currently before Parliament, to support practical, technology-focused innovations in the Australian agricultural sector.

The Government will provide concessional tax treatment for corporate taxpayers who commercialise their eligible patents linked to agricultural and veterinary (agvet) chemical products listed on the Australian Pesticides and Veterinary Medicines Authority (APVMA), PubCRIS (Public Chemicals Registration Information System) register, or eligible Plant Breeder’s Rights (PBRs).

Eligible corporate income will be subject to an effective income tax rate of 17 per cent for PBRs and patents granted or issued after 29 March 2022 and for income years starting on or after 1 July 2023. Eligible income will be taxed at the concessional tax rate to the extent that the research and development of the innovation took place in Australia.

Patent Box – explaining the Patent Box tax concession to low emissions technology innovations

The Government will expand the patent box, announced in the 2021-22 Budget and currently before Parliament, to support the Government’s technology-focused approach to reducing emissions in line with the Government’s target to achieve net zero emissions by 2050. The expanded patent box will provide concessional tax treatment for corporate taxpayers who commercialise their patented technologies which have the potential to lower emissions.

Patent Box – tax concession for Australian medical and biotechnology innovations

The Government has expanded the 2021-22 Budget measure Patent Box – tax concession for Australian medical and biotechnology innovations.

The Government will now allow patents granted or issued after 11 May 2021 to be eligible for the regime. This will incentivise further research and development (R&D) to be undertaken in Australia on medical and biotechnology patents, much of which occurs after the patent application.

The Government will also now allow standard patents granted by IP Australia, utility patents issued by the United States Patent and Trademark Office (USPTO), and European patents granted under the European Patent Convention (EPC) to be eligible. This will remove regulatory barriers to accessing the patent box regime for Australian developed innovations patented in the major overseas jurisdictions with equivalent patent regimes. However, taxpayers will still only benefit from the concessional tax treatment under the patent box to the extent that the R&D occurred in Australia.

Agriculture – continuing to deliver Agriculture 2030

The Government will provide a further $135.6 million over 5 years from 2021-22 to support the agricultural sector’s ambition of a $100 billion industry by 2030 through strengthening biosecurity arrangements and agriculture communities. Funding includes:

• $61.6 million over 4 years from 2022-23 to improve biosecurity capabilities, infrastructure and risk management activities across Northern Australia including addressing the potential threat of lumpy skin disease
• $20.1 million over 3 years from 2022-23 to strengthen on-farm biosecurity by supporting the adoption of livestock traceability reforms
• $20.0 million over 4 years from 2021-22 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 over 2 years from 2022-23 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
• $12.0 million over 3 years from 2022-23 to support large agricultural trade events that promote agribusiness
• $6.6 million over 2 years from 2021-22 to expand the AgMove program and extend it to 31 December 2022 to support more eligible job seekers who relocate to take up short-term agricultural work, including harvest work in Australia.

Building Australia’s Circular Waste Economy

The Government will provide $83.1 million over 5 years from 2022-23 to support the transformation of Australia’s waste and recycling sector and expedite Australia’s transition to a more circular waste economy.

Funding includes:

• $60.4 million over 4 years from 2022-23 to boost Australia’s plastics recycling capabilities through state-of-the-art technologies and advanced recycling solutions for problematic plastics under the Recycling Modernisation Fund
• $18.2 million over 5 years from 2021-22 to develop and promote a ‘ReMade in Australia’ brand and certification scheme that supports Australians to buy quality, locally-recycled products
• $4.4 million over 2 years from 2022-23 to support the delivery of the Government’s waste export ban by reducing licence assessment timeframes and helping industry to meet regulatory requirements.

Future Drought Fund – Drought Response, Resilience and Preparedness Plan: improving readiness and resilience

The Government will provide an additional $84.5 million over 4 years from 2022-23 (and $10.0 million over 2 years from 2026-27) for activities to improve the drought readiness and resilience of Australian farmers and communities.

Attorney-General’s Portfolio – additional resourcing

The Government will provide $61.6 million over 5 years from 2021-22, including to support Commonwealth prosecutions and legal aid commissions, to respond to privacy complaints and take enforcement action, and support small business and employees on workplace issues.

Women’s Leadership Package

The Government will provide $106.9 million over 5 years from 2021-22 to further promote women in leadership. The Government will also provide support to develop and deliver small, intensive business oriented online financial capability workshops to around 100 applicants through the Boosting Female Founders Initiative program.

Flood Package

The Government will provide support for the recovery from the February / March 2022 floods in New South Wales (NSW) and Queensland. the provision of a special supplement of 2 additional payments of the Australian

In addition, the Australian Government will jointly fund an estimated $2.0 billion in support measures for flood affected primary producers, small businesses, not-for-profit organisations and councils, as well as clean up, mental health and temporary accommodation measures through Category D of the Disaster Funding Arrangements (DRFA). Funding will be provided on a 50:50 shared basis with the NSW and Queensland Governments.

Women’s Safety

The Government will provide $1.3 billion over 6 years from 2021-22 towards initiatives to reduce all forms of family, domestic and sexual violence (FDSV) against women and children, and to establish, enhance and expand initiatives that address the full life cycle of violence across prevention, early intervention, response and recovery. These measures will form the first phase of the Commonwealth’s contribution to the National Plan to End Violence against Women and Children 2022-2032. Funding includes:

• Funding of $222.6 million over 6 years from 2021-22 will be provided to strengthening initiatives to prevent gendered violence.
• Funding of $328.2 million over 5 years from 2022-23 will be provided to extend and establish programs aimed at the early intervention and prevention of FDSV.
• Funding of $480.1 million over 6 years from 2021-22 will be provided to fund programs to support women and their children who are experiencing FDSV.
• Funding of $290.9 million over 5 years from 2022-23 will be provided to extend and expand programs that support the recovery of FDSV victim survivors.

Assistance to Ukraine

The Government will provide $156.5 million in 2021-22 to deliver initial assistance to Ukraine following the invasion by Russia.

REDSPICE – Expanded cyber and intelligence capability

The Government will provide $9.9 billion over 10 years to 2030-31 to the Australian Signals Directorate (ASD) to deliver a Resilience, Effects, Defence, Space, Intelligence, Cyber and Enablers package (REDSPICE).

REDSPICE is the largest ever investment in Australia’s intelligence and cyber capabilities and will double ASD’s size, creating 1,900 new jobs over the next decade, bolstering the Government’s commitment to Australia’s Five-Eyes and AUKUS trilateral partners while supporting a secure Indo-Pacific region.

Investing in Australia’s University Research Commercialisation

The Government will provide $988.2 million over 5 years from 2021-22 (and around $325.1 million per year ongoing) to deliver an ambitious research reform package that will drive university-industry collaboration, workforce mobility and research translation and commercialisation.

Ageing and Aged Care

The Government will provide $468.3 million over 5 years from 2021-22 to further implement the Government’s response to the Royal Commission into Aged Care Quality and Safety, to improve transparency and regulatory standards and continue ongoing reforms announced in the 2021-22 Budget.

COVID-19 Response Package – Ageing and Aged Care

The Government will provide an additional $458.1 million over 5 years from 2021-22 to support older Australians in the aged care sector with managing the impacts of the COVID-19 pandemic. Funding includes $215.3 million over 2 years from 2021-22 to provide bonuses of up to $800 to aged care workers in residential aged care and home care.

COVID-19 Response Package – supporting hospitals and emergency response extension

The Government will provide $1.1 billion over 2 years from 2022-23 to support the Government’s emergency response to COVID-19. Funding includes $984.0 million over 2 years from 2022-23 to extend activities under the National Partnership on COVID-19 Response.

COVID-19 Response Package – personal protective equipment and rapid antigen tests

The Government will provide $2.6 billion over 2 years from 2021-22 for the procurement and distribution of rapid antigen tests (RATs) and personal protective equipment (PPE). Funding supports with (PPE), including:

• The Rapid Antigen Test Concessional Access Program to deliver up to 20 free RATs over 7 months until 31 July 2022 to all Australians with a concession card, including Department of Veterans’ Affairs card holders. This cost will be partially recovered from the states and territories under the National Partnership on COVID-19 Response
• Purchase of RATs to distribute to residential aged care, GP-led Respiratory Clinics (GPRCs) and Aboriginal Community Controlled Health Services (ACCHS), remote communities, and to states and territories
• Procurement and distribution of RATs to National Disability Insurance Scheme Supported Independent Living residents and workers, over 5 months until 30 June 2022
• Purchase of PPE for the National Medical Stockpile (NMS) to distribute to residential aged care facilities to assist them in managing COVID-19
• Extension of temporary access to PPE from the NMS to eligible primary health care providers, including general practices, ACCHS and GPRCs that are caring for COVID-19 positive patients, and vaccinating pharmacies.

COVID-19 Response Package —vaccines and treatments

The Government will provide $1.0 billion over 2 years from 2021-22 for the continued distribution and uptake of COVID-19 vaccines across Australia. Funding includes:

• $800.8 million over 2 years from 2021-22 for the administration of primary and booster doses in primary care settings, pharmacies, aged and disability care facilities, and Aboriginal and Torres Strait Islander and culturally and linguistically diverse communities
• $172.9 million over 2 years from 2021-22 for the implementation, monitoring, communications and reporting of the vaccine rollout, including digital and non-digital capabilities and expert advisory services
• $69.3 million over 2 years from 2021-22 for the National Partnership on COVID-19 Response for vaccines.

The Government will provide $100.0 million over 5 years from 2021-22 to the Coalition for Epidemic Preparedness Innovations, and a further $85.0 million to access vaccines for low income counties through the COVAX Facility.

The Government has extended the COVID-19 Vaccine Claims Scheme to include children aged 0 to 4 years and fourth doses for priority cohorts to access compensation for claims related to the administration of Therapeutic Goods Administration approved COVID-19 vaccines.

The Government has made further COVID-19 treatment purchases under existing advance purchase agreements on the advice of the Science and Industry Technical Advisory Group, including oral protease inhibitor (Paxlovid®) by Pfizer, molnupiravir (Lagevrio®) by Merck, Sharp and Dohme, ixagevimab and cilgavimab (Evusheld®) by AstraZeneca, sotrovimab (Xevudy®) by GlaxoSmithKline and remdesivir (Veklury®) by Gilead Sciences.

COVID-19 Response Package – additional arts sector support

The Government will provide an additional $38.3 million over 2 years from 2021-22 to support the arts sector in recovering from COVID-19.

COVID-19 Response Package – additional aviation support

The Government will provide an additional $543.5 million over 2 years from 2021-22 to continue to support the aviation sector as part of the Government’s response to the sector’s recovery from the COVID-19 pandemic.

Japanese Encephalitis Virus National Plan

The Government will provide $69.0 million over 2 years from 2021-22 for the Japanese Encephalitis Virus National Plan.

Prioritising Mental Health

The Government will provide $547.0 million over 5 years from 2021-22 to provide mental health Stage 2 reforms through the 5 pillars of the National Mental Health and Suicide Prevention Plan – Prevention and Early Intervention, Suicide Prevention, Treatment, Supporting Vulnerable Australians and Workforce and Governance.

Women’s Health Package

The Government will provide $163.3 million over 4 years from 2022-23 for a package of initiatives to improve women’s health and further support the implementation of the National Women’s Health Strategy 2020-2030 (the Strategy).

Energy and Emissions Reductions

The Government will provide a further $446.1 million over 5 years from 2021-22 to increase energy security, maintain affordable and reliable power for households and businesses and reduce the cost of deploying low emissions technologies, consistent with Australia’s Long Term Emissions Reduction Plan.

The Government will also release Australian crude oil stocks held in the United States Strategic Petroleum Reserve in response to an International Energy Agency declared collective action, and seek to replenish storage of refined product (petrol, diesel and jet fuel) and purchase replacement oil stocks at a later date.

Support for the Australian Space Industry

The Government will provide $1.3 billion from 2021-22 (and $38.8 million per year ongoing) to grow the Australian space sector and space manufacturing industry.

Energy Security and Regional Development Plan

The Government will provide $7.1 billion over 11 years from 2022-23 to support existing programs and turbocharge the economies of 4 key regional hubs across Australia. Investment will be targeted at strategic infrastructure projects that drive economic and jobs growth in existing and emerging industries. Program funding will focus on connecting infrastructure and developing supply chains to ensure long-term economic and national security. The 4 regions are:

• The Northern Territory to fund infrastructure projects that support the manufacturing industry, promote the onshore processing of critical minerals and to strengthen the region’s position as an industrial and renewable energy hub
• North and Central Queensland to invest in water infrastructure and supply chain projects that promote water security and open up agriculture and industry growth opportunities
• Pilbara region in Western Australia to fund infrastructure projects that support the mining, mineral processing and manufacturing sectors and accelerate growth in the hydrogen and renewable energy industries
• Hunter region in New South Wales to fund transport infrastructure projects that will improve supply chain efficiencies and help diversify the economy, building on the region’s existing strengths and facilitating the development of new industries.

National Water Grid Fund – project funding

The Government will provide $6.9 billion from 2021-22 to expand the investment in nationally significant, transformational water infrastructure projects to assist in developing regional communities.

Regional Accelerator Program – establishment

The Government will provide $2.0 billion over 5 years from 2022-23 to establish the Regional Accelerator Program (RAP) to drive transformative economic growth and productivity in regional areas. The RAP will provide dedicated funding for regional businesses and communities to access programs targeted to local priorities in infrastructure, manufacturing and industry development, skills and training, research and development, and education.

Support for Veterans and their Wellbeing

The Government will provide $165.0 million over 4 years from 2022-23 to support veterans and improve wellbeing support services for veterans and their families

Digital Economy Strategy

The Government will provide $130.1 million over 4 years from 2022-23 to continue implementation of the Digital Economy Strategy and drive digital transformation. Funding includes:

• $38.4 million over 3 years from 2022-23, and $12.6 million per year ongoing from 2025-26 to implement the Government’s response to the Inquiry into the Future Directions for the Consumer Data Right
• $30.2 million to extend the whole of government cyber hubs pilot, including the establishment of a fourth Cyber Hub Pilot in the Australian Taxation Office
• $18.6 million over 4 years from 2022-23 (and $3.2 million per year ongoing) to shape global critical and emerging technology standards
• $13.6 million over 4 years from 2022-23 to continue the Office of Future Transport Technology and support the digitalisation of the transport sector
• $6.2 million over 2 years from 2022-23 to position Australia as a world leader in regulating the Digital Economy and new technologies and the development of a Digital Age Policy
• $4.8 million to continue the Digital Technology Taskforce for a further 2 years
• $3.9 million over 2 years from 2022-23 to support women to pursue career opportunities in Australia’s growing tech workforce
• $1.8 million in 2022-23 to the Digital Transformation Agency to further support the development of the Digital Identity system, including the governance, regulatory frameworks and funding arrangements associated with the Digital Identity legislation.

Disaster Support

The Government is providing disaster support for the recovery of impacted communities and improving Australia’s resilience to natural disasters, including:

• Implementation of a new cell broadcast messaging system, with the state and territory governments, to ensure critical information can be provided to the Australian public concerning significant emergencies,
• $10.0 million in 2022-23 for the initial establishment of a national emergency management stockpile, through procurement arrangements
• $10.0 million over 2 years from 2021-22 for a national program run by Fortem Australia to provide psychological support, wellbeing activities and training in maintaining mental health for first responders involved in natural disaster settings
• A review of the disaster recovery funding arrangements consistent with recommendations of the Royal Commission into National Natural Disaster Arrangements
• $0.1 million in 2022-23 to enhance the framework for transparent fundraising and reporting during natural disasters.

Administration of the Pandemic Disaster Leave Payment, Disaster Recovery Payment & Disaster Recovery Allowance

The Government will provide $450.0 million in 2021-22 to Services Australia to respond to emergencies including the delivery of the COVID Pandemic Disaster Leave Payment as well as the delivery of the Australian Government Disaster Recovery Payments made in response to the Queensland and New South Wales floods.

Women’s Economic Security Package

The Government will provide $346.1 million over 5 years from 2021-22 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. The Paid Parental Leave can be taken any time within 2 years of the birth or adoption of their child. The income test will also be broadened to have an additional household income eligibility test.

Affordable Housing and Home Ownership

The Government will increase the number of guarantees under the Home Guarantee Scheme to 50,000 per year for 3 years from 2022-23 and then 35,000 a year ongoing to support homebuyers to purchase a home with a lower deposit. The guarantees will be allocated to provide:

• 35,000 guarantees per year ongoing for the First Home Guarantee (formerly the First Home Loan Deposit Scheme)
• 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 per cent deposit. 

Other Stuff You Might’ve Missed

You’ll never know what you’ll find buried in a budget. Some other highlights include:

• I found out Australia has a National Dust Disease Taskforce
• There’s a very strong chance that Australia will be hosting the men’s Rugby World Cup in 2027 and the women’s Rugby World Cup in 2029
• And we’re spending $20.3 million over three years for the Planting Trees for The Queen’s Jubilee Program to provide grants across Australia for community-led tree planting projects to mark Her Majesty The Queen’s Platinum Jubilee

Got Questions?

If you have any questions about tonight’s budget, or would like to discuss some of the specific measures, please don’t hesitate to get in touch (once I’ve caught up on some sleep).