Solid, Sensible and Suitable for the times - 'Building a Better Future' Budget

Solid, sensible, and suited for the times. This evening, the Albanese Government delivered Labor’s first Federal Budget in nine years.

In his speech to Parliament, Treasurer the Hon Jim Chalmers MP, declared the 2022/23 Budget as ‘back to basics’, with ‘family-friendly’ budget measures aimed at delivering targeted cost of living relief.

It’s been 121 years since Australia’s first Treasurer, the Hon George Turner, delivered the inaugural Federal Budget. Forty men have followed Turner, and tonight Treasurer Chalmers has done something none have attempted: to deliver a second Budget in the same financial year (a ‘re-do’ Budget).

Although there have been budget updates, and even delayed budgets, the Albanese Government’s decision to deliver a re-do Budget for the financial year 2022/23 is unprecedented.

During the May Federal Election, the Treasurer promised a new 2022/23 Budget. Expected to be simple fiscal housekeeping, the dramatic change in global economic outlook in the six months since has meant this Budget has shifted in scope and impact.

Through reallocating $10 bn of the previous Government’s spending commitments, and pushing out the start of $11 bn worth of others, Finance Minister, Senator the Hon Katy Gallagher, said the Government would reallocate $22 bn to ‘more sensible priorities’.

The following is a snapshot of key measures announced by Treasurer Chalmers.

Health and Aged Care

The Health and Aged Care sector remains a strong focus for the October 2022/23 Budget.

The Health Portfolio will receive $105.8 bn in the 2022/23 financial year, and an additional $229.7 m to strengthen Medicare GP grants.

Other announced measures include:

$787.1 m over four years to reduce the Pharmaceutical Benefits Scheme General Co-Payment to $30.
$1.4 bn over four years for new and amended listings on the Pharmaceutical Benefits Scheme, the Repatriation Pharmaceutical Benefits Scheme, the Life-Saving Drugs Program, the National Diabetes Services Scheme and the Stoma Appliance Scheme.
$143.3 m over four years to support access to healthcare in rural and regional areas.
$452 m over 6 years to support the establishment of cancer centres in Brisbane and Adelaide.
Investment into ongoing COVID-19 relief and support, including:
$355.8 m in 2022/23 financial year for the distribution and uptake of COVID-19 vaccines across Australia.
$759.9 m in 2022/23 financial year to extend the National Partnership on COVID-19 Response.
$845.4 m in the 2022/23 financial year to support older Australians and the aged care sector with managing the COVID-19 impacts.
$235 m over four years to commence the roll-out of Urgent Care Clinics.

The Government is providing $2.5 bn over four years to reform the aged care system.

These reforms include the requirement for all facilities to have a registered nurse onsite 24 hours per day, 7 days a week, from 1 July 2023 and increasing care minutes to 215 minutes per resident per day from 1 October 2024.

Additional measures to reform the Aged Care sector include:

$23.2 m to improve aged care infrastructure and services that provide additional support to older First Nations peoples, and older Australians from diverse communities and regional areas.
$9.9 m over two years to establish the Aged Care Complaints Commissioner within the Aged Care Quality and Safety Commission from December 2022.
$8.2 m over four years to increase financial transparency through the introduction of new financial reporting requirements for residential aged care providers.
$3.6 m in 2022/23 to establish a national registration scheme and code of conduct for personal care workers in the aged care sector.

The Albanese Government is additionally providing $540.3 m over four years to improve the delivery of aged care services and respond to the Final Report of the Royal Commission into Aged Care Quality and Safety.

National Disability Insurance Scheme

National Disability Insurance Scheme (NDIS) is a source of increased spending pressure for the Albanese Government.

The Albanese Government has outlined an investment of $437.4 m over three years to support people with disability and their families, including:

$385.0 m in 2023/24 in additional funding to the National Disability Insurance Agency (NDIA).
$21.2 m over the next three years for NDIS Appeals providers to support people with the Administrative Appeals Tribunal (AAT) appeals process.
$18.1 m over the next two years to review NDIS design, operations and sustainability.
$12.4 m in 2022/23 to introduce expert review pathways to resolve disputes from NDIA decisions and reduce appeals to the AAT.
$126.3 m over four years to establish a cross-agency Fraud Fusion Taskforce to address fraud and serious non-compliance in the NDIS.

Climate Change, Water and the Environment, Clean Energy and Disaster Relief

The Albanese Government has positioned environmental policy as a key focus of its progressive agenda. A focus on disaster preparedness and relief, a transition to clean energy, environmental conservation and mitigation of the impacts of climate change, is outlined through substantial expenditure measures.

Additionally, the Albanese Government has committed $45.8 m over six years to restore Australia’s reputation and international engagement on climate change and energy transformation.

Measures include:

Climate Change

$746.9 m over four years in redirected funding to government spending on climate change, energy, the environment and water, found as a result of the Government Spending Audit.
$275.7 m over four years and a further $60.5 m per year ongoing to the Department of Climate Change, Energy, the Environment and Water.
$141.1 m over ten years in carbon capture technology investments.
$62.2 m over three years to support small and medium sized enterprises’ energy-efficient equipment upgrades.
$49.5 m over four years to increase the security of the diesel exhaust fluid (DEF) market in Australia.
$20.3 m over four years for the Carbon Farming Outreach Program to empower Australian farmers and land managers with low emissions technologies and practices.
$16.4 m in 2022/23 to the Bureau of Meteorology for aviation meteorological services.

Water and the Environment

$1.1 bn over six years and a further $2.5 m per year ongoing for the Natural Heritage Trust.
$278.1 m over five years to delivering commitments for the National Water Grid.
$224.5 m over four years for native species conservation.
$204.8 m over five years for forestry industry and forest products.
$134.1 m over four years and $3.3 m per year ongoing to Australia’s Biosecurity System.
$117.1 m over three years to sustain environmental assessments.
$96.9 m over four years for the Reef 2050 Long-term Sustainability Plan.
$91.8 m over five years to Shovel Ready Catchment and Reef Restoration Projects.
$51.9 m over five years to the Murray-Darling Basin Plan to account for the impacts of climate change and restore trust in water management.

Clean Energy

$20.0 bn for Rewiring the Nation to expand and modernise Australia’s electricity grids.
$1.9 bn for the Powering the Regions Fund to assist industries, regional Australia and communities with the transition to net zero emissions.
$275.4 m over six years to establish the Driving the Nation Fund for cheaper and cleaner transport.
$224.3 m over four years for community batteries for household solar.
$157.9 m over six years and $1.1 m per year ongoing for the National Energy Transformation Partnership for secure and reliable energy.
$95.6 m over nine years to support 10,000 New Energy Apprenticeships.

Disaster Relief

$630.4 m over four years for the Disaster Ready Fund.
$51.1 m in 2022/23 for further disaster support for communities.
$38.3 m over four years to Disaster Relief Australia.

Infrastructure

Despite limited measures announced under the infrastructure portfolio, it is one of the highest spending portfolios in this year’s budget.

$757.7 m over five years to improve mobile and broadband connectivity in rural and regional Australia.
$8.1 bn over ten years for priority rail and road infrastructure projects across Australia.
Increase the Heavy Vehicle Road User Charge rate from 26.4 cents per litre to 27.2?cents per litre of diesel fuel.
$2.4 bn to NBN Co over four years to upgrade the NBN.
$5.4 bn over seven years to support economic growth and development across regional Australia.
$139.9 m over three years to support the aviation sector.

Defence

With growing instability in Europe, and a renewed focus on the Pacific region, the Government is providing further assistance to strengthen defence:

$213.3 m over five years to deliver additional assistance to Ukraine.
$147.5 m over four years to expand Australia’s engagement with Pacific partners and increase support to regional security priorities. Key measures include:
$45.7 m over two years to support the Australian Federal Police’s deployment in Honiara through the Solomons’ International Assistance Force.
$30.4 m over four years to upgrade the aerial surveillance capability under the Pacific Maritime Security Program.
$22.3 m over four years to establish a network of Australian Border Force (ABF) officers across the Pacific
$6.9 m over four years to establish an Australia Pacific Defence School to provide enhanced integrated training for members of Pacific defence and security forces
$24.3 m over four years to improve the capacity of the Department of Veterans’ Affairs.
$97.9 m over four years to increase totally and permanently incapacitated payment for veterans.
$87.0 m over two years to improve the administration of the claims processing system and improve veterans’ services.
$37.3 m over three years to the Department of Defence to support the development of defence and fuel manufacturing industries.
$70.7 m over four years from 2022–23 to support veterans and their families and improve veterans’ wellbeing.

Social Policy – Women, Childcare, and Housing

With Women’s Policy and Affordable Childcare a centrepiece of the Labor Party’s Federal Election campaign, it is unsurprising that these areas take priority in the October Budget.

One of Labor’s key election commitments was increasing access to childcare subsidies, which would reduce childcare expenses for an estimated 1.26 million families.

Important social policy measures include:

$4.7 bn over four years from 2022/23 to deliver cheaper child care.
$10 bn investment into the Housing Australia Future Fund, including an accord with industry to deliver one million homes.
$588.4 m to Services Australia to respond to emergencies in 2022/23.
$560 m to community organisations to help community services keep up with rising costs.
Increased paid parental leave from 18 to 26 weeks to be delivered by 2026.
$531.6 m to boost parental leave to enhance economic security, support and flexibility for Australian families.
The Albanese Government will introduce reforms from 1 July 2023 to make the Paid Parental Leave Scheme flexible for families.

The Albanese Government will also improve the quality of spending on Women’s Safety to enhance the Government’s contribution to the First Action Plan of the National Plan to End Violence Against Women and Children 2022-2032. Key funding to support this National Plan include:

$169.4 m over four years from 2022/23 to provide an additional 500 frontline service and community workers to increase support for women and children experiencing family, domestic, and sexual violence.
$39.6 m in 2022/23 financial year to meet increased demand for the Escaping Violence Payment.

Indigenous Policy

The Albanese Government is continuing to push its promise to deliver on Indigenous policy, including measures such as:

$314.8 m for Indigenous health over five years from 2022/23 to support the Government’s commitment to close the gap for First Nation’s health outcomes.
$100 m for housing and essential infrastructure in Northern Territory homelands.
$90 m over four years to support improved justice outcomes for First Nations peoples.
$83.8 m over four years from 2022/23 to microgrid technology for First Nations communities.
$75.1 m over two years to prepare for the delivery of the First Nations Voice to Parliament referendum.
$9.2 m over three years to establish the Closing the Gap Housing Policy Partnership to deliver against the National Agreement on Closing the Gap.
$15.9 m over four years from 2022/23 to establish the Torres Strait Climate Change Centre of Excellence.

Other Key Announcements

$1.4 bn in additional Official Development Assistance over four years, including:
$900 m to the Pacific region; and
$470 m to increase support to Southeast Asia.
$621 m over four years for 465,000 free TAFE spots in industries including hospitality and tourism, and fill skills gaps in construction and digital industries.
$485.5 m over four years to deliver 20,000 additional subsidised university spots for priority groups and degrees in IT, nursing, teaching, health, and engineering.
$262.6 m over four years to establish and support the ongoing operation of the independent National Anti-Corruption Commission.