Federal Budget 2023-24: Key Portfolio Measures
9 May 2023
- Defence; Foreign Affairs & Trade; Home Affairs; Attorney-General
- Health and Aged Care; Social Services
- Infrastructure, Transport, Regional Development, Communications and the Arts
- Employment and Workplace Relations; Education
- Industry, Science and Resources
- Climate Change, Energy, the Environment and Water; Agriculture, Fisheries and Forestry
- Back to Budget Overview
Defence; Foreign Affairs & Trade; Home Affairs; Attorney-General
The Government has re-affirmed its commitment to the delivery of the AUKUS agreement, with spending in the Defence portfolio centred on the $9 billion allocated to developing sovereign nuclear submarines. The Government will be investing over $19 billion into the implementation of the immediate priorities that were outlined in its response to the ‘Defence Strategic Review’. Furthermore, the Department of Foreign Affairs and Trade (DFAT) has continued its focus on enhancing Australia’s relations throughout the Pacific, with various funding allocations for Defence Force deployments and support for enhanced diplomatic and business engagement in the region. Within the Home Affairs portfolio the Government has announced additional support for cyber security measures.
- $4.5 billion over 10 years from 2023-24, and $482.7 million each year ongoing, to support the acquisition of conventionally armed nuclear-powered submarines. This cost includes $4.2 billion over 10 years to the operation of a new Australian Submarine Agency, $15.3 million for the establishment of an Independent Monitor and Adviser for the acquisition, and $87.2 million over two years for the development of regulatory standards for nuclear-powered submarines. There is no funding regarding the acquisition of the platform at this stage, as spending appears well outside the forward estimates.
- $3.4 billion over 10 years to establish the Advance Strategic Capabilities Accelerator (ASCA), including an additional $591 million above the previously planned spending on defence innovation.
- $1.9 billion over five years towards expanding Australia’s engagement across the Pacific, including the expansion and improvement of the Pacific Australia Labour Mobility (PALM) scheme and supporting relevant commitments from the 2050 Strategy for the Blue Pacific Continent.
- $468.8 million over four years to modernising the Australian Secret Intelligence Service (ASIS).
- $397.4 million over two years to Defence workforce growth targets through the piloting of continuation bonuses and a defence housing feasibility review.
- $189.6 million over two years to continue delivering additional assistance to Ukraine following Russia’s invasion.
- $158.6 million over four years for additional Official Development Assistance to ensure the growth of Australia’s assistance to developing countries, followed by $8.6 billion over 10 years from 2027-28.
- $125.8 million over four years from 2023-24 to support migration by implementing parts of the Jobs and Skills Summit to ease skills shortages.
- $101.6 million over five years from 2022-23 to strengthen cyber security in Australia, including $46.5 million over four years to establish a Coordinator for Cyber Security.
- $45.2 million over four years to strengthen the protection and enforcement of privacy, including $44.3 million to aid in the further investigation and enforcement of data breaches.
- Investing in Australia’s national defence
- Further investments to support veterans and families
- Building disaster resilience through better preparedness, response and recovery
- Investing in a justice system that keeps Australians safe & advances integrity & accountability
- A safer and more secure future for Australia
- Further Investments to Support Veterans and Families
- Investing to secure Australia’s interests in the World
- Delivering for a peaceful, prosperous and resilient Pacific
Health and Aged Care; Social Services
The Government has prioritised poverty reduction measures, including increased funding for Jobseeker, rental assistance, and single parenting payments. Additionally, the Government has continued to fund recommendations made by the Strengthening Medicare Taskforce Report and the Royal Commission into Aged Care Quality and Safety. The Budget also captures significant spending on COVID-19 treatments and new nicotine vaping reforms.
- $5.7 billion over five years from 2022-23 to improve access to multidisciplinary primary care, as recommended by the ‘Strengthening Medicare Taskforce Report’. This includes $3.5 billion over five years to triple the bulk billing benefits for consultations for low-income patients and children.
- $4.9 billion over five years from 2022-23 to support Australians receiving working age and student payments, including increased support for Jobseeker recipients aged 55 years and over.
- $2.7 billion over five years from 2022-23 to increase the Commonwealth Rent Assistance maximum rates by 15 per cent to assist with the burden of rental affordability.
- $2.2 billion over five years from 2022-23 for new and amended listings across a number of schemes including the Pharmaceutical Benefits Scheme (PBS) and the ‘Life Saving Drugs Program’.
- $1.9 billion over five years from 2022-23 to increase the eligibility of the Parenting Payment (Single) for carers with children up to 14 years of age. This has been increased from 8 years of age.
- $827.2 million over five years from 2022-23 to deliver on recommendations in the ‘Final Report of the Royal Commission into Aged Care Quality and Safety’. This includes $487 million over four years from 2023-24 to expand the ‘Disability Support for Older Australians Program’, with $133.6 million in ongoing funding.
- $757.4 million over two years from 2022-23 to continue to provide COVID-19 treatments through a range of vaccine channels, including community pharmacies, Primary Health Networks and the ‘Vaccine Administration Partnership Program’.
- $732.9 million over four years from 2023-24 to support the functionality of the National Disability Insurance Scheme (NDIS) to ensure its longevity, including $429.5 million over four years from 2023-24 to improve the decisions and processes of the National Disability Insurance Agency.
- $515 million over five years from 2022-23 to raise award wages for aged care workers by 15 per cent from 30 June 2023, and $956.9 million over 10 years from 2022-
- $511.1 million over the forward estimates from 2023-24 for regulation and reform of nicotine vaping products, including a new national lung cancer screening program.
- $326.7 million over four years from 2023-24 to deliver women’s safety initiatives under the National Plan to End Violence Against Women and Children 2022-32.
- Increased support to end violence against women and children
- More opportunities and investment to support people with disability
- Boosting support payments to help with cost-of-living pressures
- Billions to boost housing and affordability
- Getting the NDIS back on track
- Budget empowers local leaders to tackle disadvantage
Infrastructure, Transport, Regional Development, Communications and the Arts
As previously announced, the Government will undertake an independent strategic review into the previous government’s $120 billion ‘Infrastructure Investment Program’ (IIP). It has also committed to spend an additional $1.8 billion over 10 years on infrastructure projects and $3.4 billion on venue infrastructure in the lead up to the 2032 Brisbane Olympic and Paralympic Games. The Government will also contribute $7.7 billion towards Australia’s national broadcasters for operational funding of the Australian Broadcasting Corporation (ABC) and the Special Broadcasting Service (SBS).
- $7.7 billion over five years for Australia’s national broadcasters, including $6 billion for the ABC and $1.8 billion for SBS.
- $3.4 billion over 10 years for venue infrastructure ahead of the 2032 Brisbane Olympic and Paralympic Games, including $2.5 billion for the development of the Brisbane Arena.
- $1.8 billion over 10 years for infrastructure projects. This includes $1.1 billion in 2032-33 for existing road and safety programs, $361.9 million over eight years for infrastructure projects in NSW, and $200 million for the Major Projects Business Case Fund. The Government will also launch an independent review of the $120 billion IIP.
- $687.4 million over six years from 2022-23 for sustainable urban development, including $305 million over five years to support the Macquarie Point precinct and the University of Tasmania Stadium in Hobart and Launceston.
- $535.3 million over four years to restore nine National Collecting Institutions.
- $286 million over five years from 2022-23 for arts, entertainment, and cultural projects as part of the ‘National Cultural Policy – Revive’.
- $267.4 million over seven years from 2022-23 for maritime and transport projects, including $56.8 million to review safety and regulatory initiatives of the Civil Aviation Safety Authority.
- $134.1 million over four years for the Office of the eSafety Commissioner to support online safety initiatives.
- $20.9 million over five years to reduce transport emissions, including $7.8 million over four years from 2022-23 to deliver a Transport and Infrastructure Net Zero Roadmap and Action Plan.
- $7.9 million over four years for the Australian Communications and Media Authority (ACMA) to tackle misinformation and disinformation on online platforms.
- Increase the Heavy Vehicle Road User Charge rate of 27.2 cents per litre of diesel by six per cent over the forward estimates.
- Budget 2023-24: Strengthening Australia’s $120 billion infrastructure pipeline
- Budget 2023-24: Supporting a strong, secure and sustainable regional Australia
- Budget 2023-24: Albanese Government revives Australia’s arts and culture
- Budget 2023-24: Connecting, informing and protecting Australians
Employment and Workplace Relations; Education
The Budget will deliver cheaper childcare for families as its $4.7 billion childcare subsidy, announced in the October Budget, will come into force from 1 July. The Government will achieve savings of $212.9 million over five years by reducing place allocations for the ‘Self-Employment Assistance Small Business Coaching’ program, reducing uncommitted ‘Industry Workforce Training’ program funding, as well as ceasing the ‘Entrepreneurship Facilitators Program’.
- $105.9 million over four years from 2023-24 to develop an information and communications technology platform for schools and higher education providers, as well as support the Department of Education’s critical policy functions.
- $87.8 million over five years from 2022-23 to improve the administration of student loans and enhance the security and privacy of data holdings.
- $72.4 million over five years from 2022-23 to backfill up to 75,000 educators and provide educators with mandatory or highly recommended training.
- $54.3 million over five years from 2022-23 to create a new non-financial support model for Australian Apprenticeships. The support model will commence from 1 July 2024.
- $35 million over four years from 2022-23 to attract more people to the teaching profession and retain more teachers in the workforce. This forms part of the National Teacher Workforce Action Plan agreed by Commonwealth, State and Territory Education Ministers in late 2022.
- $27.4 million over five years from 2023-24 to improve the safety and fairness of workplaces, by increasing the Productivity, Education and Training Fund, establishing a National Construction Forum, and developing training for psychosocial hazards.
- $26.3 million over five years from 2022-23 to boost the employment services for young Australians through enhancements to the ‘Local Jobs Program’.
- $10 million over four years from 2023-24 to create a national strategy for the prevention of silicosis and an occupational lung diseases team.
- Building a better, fairer education system for all Australians
- Albanese Government delivering for workers
Industry, Science and Resources
The Government has committed to further supporting the transition to net zero and the development of the critical minerals industry with a number of measures, including the establishment of a Future Gas Strategy and further support for regulatory frameworks for emissions reduction. As anticipated, the National Reconstruction Fund Corporation (NRFC) and a range of critical minerals programs received additional support to assist in building the sector and generating downstream industries. The Government has also announced significant investment in the management and disposal of radioactive waste.
- $476.4 million over seven years from 2023-24 for management and disposal of radioactive waste. This includes $304.5 million over seven years for the Australian Radioactive Waste Agency within the Department of Industry, Science and Resources, and $162.2 million over seven years for the establishment of a National Radioactive Waste Management Facility.
- $431.9 million over four years to support small to medium enterprises (SMEs) and startups, including $392.4 million to establish the ‘Industry Growth Program’ to assist in the commercialisation of ideas.
- $132.7 million over four years to improve science, technology, engineering, and mathematics (STEM) capability through engagement programs, as well as reforming the National Measurement Act 1960 (Cth).
- $80.5 million over four years for Australian critical minerals sectors to build supply chains, international investment and transition to net zero emissions. This includes funding for international engagement to promote Australian critical minerals projects.
- $61.4 million over four years for the establishment of the NRFC that will oversee the $15 billion National Reconstruction Fund.
- $34.2 million over three years for the Australian Space Agency to coordinate policy and strategy in the civil space sector.
- $12 million over three years for a review of the environmental management regime for offshore petroleum and greenhouse gas storage activities, including consultation requirements for offshore projects, including with First Nations peoples.
- $6.7 million to develop a Future Gas Strategy to support Australia’s energy system to reach 82 per cent renewables by 2030.
Climate Change, Energy, the Environment and Water; Agriculture, Fisheries and Forestry
The Government has outlined plans to make Australia a “renewable energy superpower” with a number of investments in clean energy as well as related skills and technology. The Budget features significant funding for the hydrogen sector through the ‘Hydrogen Headstart’ program and renewable energy projects through a Capacity Investment Scheme, as well as support for green industries to assist in reducing emissions. The Government has saved a significant amount after the redirection of several water infrastructure projects and is using a portion of these funds to police its climate change regulations.
- $2.2 billion for the Australian hydrogen industry, including the establishment of the ‘Hydrogen Headstart’ program to support renewable hydrogen production by providing revenue support through competitive production contracts.
- $1.5 billion over five years for the Government’s Energy Price Relief Plan to provide support to small businesses and households, and $14.7 million of which is for the Australian Competition and Consumer Commission (ACCC) to enforce the temporary $12 per gigajoule price cap of gas.
- $1.3 billion to establish the Household Energy Upgrades Fund, including $1 billion to provide low-cost finance for energy saving home upgrades through the Clean Energy Finance Corporation and another $300 million held in contingency reserve to upgrade social housing energy efficiencies.
- $1 billion over four years to strengthen biosecurity systems by supporting operational costs, delivering modern digital systems for importers, and the continuation of the ‘Indigenous Ranger Biosecurity Program’.
- $872.5 million in savings measures over 11 years due to the Federal Government not proceeding with a number of water infrastructure projects including the Dungowan Dam, Emu Swamp Dam, and the Southern Forests and the Fingal Irrigation Schemes.
- $450.3 million over four years for the Safeguard Transformation Stream, to support decarbonisation in facilities covered by the Safeguard Mechanism.
- $400 million to establish the Industrial Transformation Stream for emissions reduction in regional Australia.
- $302.1 million over five years to support the agriculture sector through the Natural Heritage Trust, established to help farmers transition to a low emissions future and strengthen agricultural sustainability.