Federal Budget 2022-23: Key Portfolio Measures

25 October 2022

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Defence; Foreign Affairs & Trade; Home Affairs; Attorney-General

The Labor Government has re-affirmed its commitment to increase spending in the aid portfolio, with a particular focus on increasing support to partners in the Asia-Pacific region. Additional spending allocated to the Department of Foreign Affairs amounted to $1.4 billion over four years for international development programs and $575 million towards infrastructure initiatives for partners across the region. Funding within the Department of Defence has increased 8 per cent in 2022-23 (in line with projects that have already been announced). There are limited new measures in the Defence portfolio, with most decisions being held over until the outcomes of the Defence Strategic Review in March. New measures include new support for veterans’ affairs and assistance to Ukraine.

Key measures

  • $1.4 billion over four years to further Official Development Assistance to reconstruct Australia’s international development programs and regain Australia’s status as an optimal strategic partner in the Asia-Pacific region. This funding has been primarily allocated to support for the Pacific and Southeast Asia.
  • $630.4 million over four years to strengthen Australia’s disaster resilience, including up to $200 million per year from 2023-24 for the Disaster Ready Fund.
  • $500 million over 10 years of additional funding to the existing Official Development Assistance program, as well as the creation of a Pacific Climate Infrastructure Financing Partnership from $50 million of existing grant funding.
  • $262.6 million over four years to establish and support the ongoing operation of the independent National Anti-Corruption Commission (the Commission). The Commission will subsume the Australian Commission for Law Enforcement Integrity (ACLEI).
  • $213.3 million over five years from 2021-22 for additional assistance to Ukraine, with $185.6 million of that to provide military assistance, equipment and a contribution to NATO’s Ukrainian Comprehensive Assistance Package Fund.
  • $175.1 million over four years, and $80.3 million per year ongoing from 2026-27, to boost permanent migration to Australia by creating a new Pacific Engagement Visa for nationals of Pacific Island countries and Timor-Leste.
  • $67.5 million over four years for the expansion and enhancement of the Pacific Australia Labour Mobility scheme, and to improve its benefits for potential workers and employers.
  • $59.9 million over four years to support the operations of the Australian Human Rights Commission, upgrade ICT infrastructure supporting Commonwealth prosecutions, and to respond to the Optus data breach.

Further reading

Health and Aged Care; Social Services

While funding for the national COVID-19 response is ongoing, the Government has also provided additional support for the aged care sector, families through paid parental leave and is taking steps to improve the health standards of First Nations peoples. Emergency payments have also been provided in response to recent flooding disasters across the east coast. Costs will be partially met by existing resourcing within the Department of Health and Aged Care, and partly offset by receipts from decommissioning the COVIDSafe App and associated technology, and NDIS debt recovery.

Key measures

  • $2.5 billion over four years to reform the aged care system and improve the quality of care, including onsite registered nurses 24 hours a day, seven days per week.
  • $1.4 billion over four years for new and amended listings on the Pharmaceutical Benefits Scheme (PBS) and other relevant schemes. The cost of some medicines will be reduced by revenue from rebates negotiated as part of purchase agreements.
  • $759.9 million in 2022-23 to extend the National Partnership on COVID-19 Response supporting state and territory vaccine delivery, testing and treatments; and a further $410.3 million in 2022–23 for the procurement and distribution of rapid antigen tests (RATs) and personal protective equipment (PPE).
  • $787.1 million over four years (and $233.4 million per year ongoing) to decrease the general patient co-payment for treatments on the PBS from $42.50 to $30.00, commencing 1 January 2023.
  • $588.4 million in 2022–23 for Services Australia to respond to emergencies, including COVID-19 payments and the Australian Government Disaster Recovery Payment.
  • $540.3 million over four years to deliver recommendations under the Final Report of the Royal Commission into Aged Care Quality and Safety, including to strengthen communication, extend financial support, and reform governance in the sector.
  • $531.6 million over four years (and $619.3 million per year ongoing) to expand the Paid Parental Leave Scheme by two additional weeks a year until it reaches a full 26 weeks from 1 July 2026.
  • $437.4 million over three years to support people with disability and their families, including $385 million in additional funding to support National Disability Insurance Scheme (NDIS) participants.
  • $314.8 million over five years to support the Government’s commitment to close the gap for First Nations peoples’ health and wellbeing outcomes.
  • $217.7 million over four years from 2022-23 to abolish the Cashless Debit Card and commence the transition to voluntary income management from 6 March 2023.
  • $126.3 million over four years to establish a cross-agency Fraud Fusion Taskforce to address scams and non-compliance in the National Disability Insurance Scheme (NDIS). This is expected to increase receipts by $291.5 million from recoveries of debts from NDIS providers.

Further reading

Infrastructure, Transport, Regional Development, Communications and the Arts

The Government has committed to spend an additional $8.1 billion on priority transport projects across Australia over the next 10 years, partially funded by redirecting $2.8 billion from a range of infrastructure grants and programs. The Budget also includes $5.4 billion over seven years for economic support in regional Australia.

Key measures

  • $6 billion for Victorian infrastructure projects, including road upgrades, with $2.2 billion for the Suburban Rail Loop East in Melbourne’s eastern suburbs.
  • $2.45 billion for infrastructure in the Northern Territory, including $1.9 billion in equity for the construction of common user marine infrastructure within the Middle Arm Sustainable Development Precinct, and $350 million for the upgrade of Central Arnhem Road and to seal Tanami Road between Alice Springs and the Kimberley.
  • $2.4 billion equity investment to NBN Co over four years to upgrade 1.5 million residences with fibre to the premises broadband, with 600,000 of these being in regional Australia.
  • $2.1 billion for Queensland projects, including $866.4 million for Bruce Highway upgrades, $400 million for the Inland Freight route between Mungindi and Charters Towers and $400 million for Beef Corridors across regional Queensland.
  • $1.4 billion for NSW infrastructure, including $500 million for early works and corridor acquisition for Sydney-Newcastle high speed rail, with $268.8 million for the England Highway Muswellbrook bypass and $110 million for the Epping Bridge in northern Sydney.
  • $1 billion over five years for the Priority Community Infrastructure Program, which includes $120 million for the Central Australia Plan.
  • $1 billion over the next three years for the new Growing Regions Program and the Precincts and Partnerships Program for grants and funding partnerships in regional Australia.
  • $757.7 million over the next five years to improve mobile phone and broadband services across regional Australia, including $400 million for mobile base stations and $200 million for two additional rounds of the existing Regional Connectivity Program.
  • $672.7 million over seven years that will be used for emerging industry support and economic transition in the Hunter, Pilbara and central Queensland regions.
  • $634.8 million for infrastructure projects in Western Australia, including $40 million for the Halls Creek to Alice Springs Corridor upgrade, as well as $125 million for electric bus charging infrastructure.

Further reading

Employment and Workplace Relations; Education

The Budget includes a significant funding package designed to reduce the cost of childcare, along with a commitment to create an additional 20,000 Commonwealth Supported Places at universities and other higher education providers. In the Employment and Workplace Relations portfolio, the Government will achieve savings by abolishing the Australian Building and Construction Commission, while allocating $12.9 million in funding to establish the statutory body, Jobs and Skills Australia.

Key measures

  • $4.7 billion over four years from 2022-23 and $1.7 billion per year ongoing to reduce childcare costs for families and remove barriers for women to re-enter the workforce. Among other measures, this will involve increasing the maximum Child Care Subsidy rate from 85 per cent to 90 per cent for all families earning less than $530,000 per household.
  • $921.7 million over five years from 2022-23 to develop a national Vocational Education and Training system to address skills shortages. This includes $871.7 million over five years from 2022-23 to support an additional 480,000 fee-free TAFE and vocational education places in industries and regions with skills shortages.
  • $485.5 million over four years from 2022-23 to create an additional 20,000 Commonwealth Supported Places at universities and other higher education providers, commencing in 2023 and 2024.
  • $310.4 million over nine years from 2022-23 to attract and retain high-quality teachers, which includes an investment of $160.1 million over eight years from 2023-24 to provide $10,000 bursaries to students who achieve an ATAR of 80 or above and undertake a teaching degree.
  • $270.8 million over two years from 2022-23 for a Schools Upgrade Fund to provide grant funding for capital works projects in schools and to improve ventilation in classrooms.
  • $203.7 million over two years from 2022-23 to bolster services aimed at improving school student wellbeing, particularly to address the impacts of COVID-19.
  • $95.6 million over nine years from 2022-23 to support 10,000 New Energy Apprenticeship places and additional in-training support places.
  • $65.3 million over four years from 2022-23 and $18.2 million over two years from 2026-27 for a Consent and Respectful Relationships School Education Program to help prevent gender-based violence, delivered in partnership with state governments.
  • $47.7 million over four years from 2022-23 for the Department of Education to reduce fraud and non-compliance in the areas of early childhood education and care.
  • $43.9 million over four years from 2022-23 to support the National Agreement on Closing the Gap targets and improve early childhood outcomes for First Nations children.
  • $12.9 million over three years from 2022-23 to establish Jobs and Skills Australia to guide strategy and provide advice in relation to Australia’s labour market and skills and training needs.

Further reading

Industry, Science and Resources

The Government has committed to supporting local manufacturing and industry capability within the Industry, Science and Resources portfolio. The Government will establish a $15 billion National Reconstruction Fund (NRF) to strengthen priority industries and support employment growth. The Government is also developing capability in the critical minerals space and directing funding toward supporting the supply of Australian domestic gas.

Key measures

  • $15 billion over seven years from 2023-24 for the National Reconstruction Fund for targeted co-investments through independently assessed projects that support priority areas including resources, transport and medical science.
  • $506.4 million in savings measures has been identified across the portfolio, including $303.7 million from the reversal of uncommitted funding for the Modern Manufacturing Initiative and the decision to not proceed with the third round of the Manufacturing Modernisation Fund.
  • $113.6 million over four years towards supporting local industry, including $50 million to upgrade the Nyrstar Hobart zinc smelter in Tasmania and $17.2 million for a pilot Food Manufacturing Innovation Hub in NSW.
  • $99.8 million over three years from 2022-23 towards the Strategic Critical Minerals Development Program to reduce market access barriers for Australian industry.
  • $50.5 million across four years to establish the Australian Critical Minerals Research and Development Hub.
  • $65.7 million across nine years from 2022-23 to support the supply of Australian domestic gas through increasing monitoring of the gas market and enhancing the Government’s ability to respond to changing market conditions. This package also includes funding to increase the frequency of domestic gas supply assessments by the Australian Competition and Consumer Commission (ACCC) and extend the ACCC’s inquiry into gas supply arrangements in Australia.
  • $14.2 million over four years to develop a National Rail Manufacturing Plan with the aim of building more trains in Australia.
  • $47.2 million over six years to support the development of talent and leadership in Australian science and technology, including funding to support women in science, youth outreach programs and to develop Australian quantum technology.

Further reading

Climate Change, Energy, the Environment and Water; Agriculture, Fisheries and Forestry

As energy security issues reach Australian shores, the Government has committed to an overhaul of energy infrastructure with the announcement of a $20 billion Rewiring the Nation Program. The Budget also features significant funding for measures to protect the Great Barrier Reef, along with a commitment to restore the Climate Change Authority. Biosecurity capability is a major focus in the Agriculture portfolio, with funding allocated to target concerns about foot-and-mouth disease and improve the traceability of livestock.

Key measures

  • $20 billion to establish Rewiring the Nation, which will expand and modernise Australia’s electricity grids, unlock new renewables and increase storage capacity with the aim of driving down power prices. Majority of this funding will provide concessional loans and equity to invest in infrastructure projects.
  • $1.1 billion over six years for the sustainable management of natural resources. This includes funding for efforts to protect flora and fauna and expand the Indigenous Protected Areas program; transition the agriculture sector to sustainable farming practices; and fund an additional 1,000 Landcare Rangers.
  • $278.1 over five years to develop the National Water Grid, with funding for infrastructure projects including the Cairns Water Security Project; Tasmanian Pipeline to prosperity; and water infrastructure projects near Townsville, Queensland.
  • $275.7 million over four years to develop internal capabilities within the Department of Climate Change, Energy, the Environment and Water to deliver the Government’s priorities in the areas of climate change and energy system transformation.
  • $275.4 million over six years to establish the Driving the Nation Fund for cheaper and cleaner transport options, including $16.1 for the Australian Renewable Energy Agency, $89.5 million for the Hydrogen Highways Initiative and $39.8 million to establish a National Electric Vehicle Charging Network.
  • $224.5 million over four years to address environmental and native species decline.
  • $224.3 million over four years to deploy 400 community batteries to cut emissions, reduce power bills and allow households to store and use excess, unused power.
  • $204.8 million over five years for agriculture industry research and development to encourage sustainable practices, particularly in the timber industry.
  • $157.9 million over six years for the implementation of the National Energy Transformation Partnership to boost energy security and support transition projects.
  • $141.1 million over the next decade for investment in carbon capture technologies including carbon dioxide removal and negative emissions technologies, delivered through redirecting funding.

Further reading

 

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