What Does The Federal Budget Mean for You?

Lebba Khater Posted on 25 Oct 2022

 

The Labor Government's Federal Budget was announced overnight.

 

The Canberra Times provided a great summation of the Budget, please see the points below:

 

Housing:

  • Governments, industry and investors have struck an accord, setting an ambitious target to build one million new homes in five years from 2024. The federal budget commits $350 million in additional funding for another 10,000 affordable homes, to get started towards the goal.
  • The government will spend $13.4 million over four years from 2022-23, and $4.2 million per year ongoing, to develop a 10-year National Housing and Homelessness Plan in 2023.
  • It is also making a $10 billion investment in the newly created Housing Australia Future Fund. The government says this will generate returns to fund 30,000 social and affordable homes over five years and to allocate $330 million for acute housing needs.

Health:

  • As promised in the election campaign, the Labor government is moving to make medicines cheaper by cutting the maximum Pharmaceutical Benefits Scheme general co-payment to $30 per script, at a cost to the government of $787 million over four years.

Defence:

  • Defence funding will grow beyond 2 per cent of GDP in the next four years, as the nation funds military hardware purchases and realigns its defence posture amid heightening regional tensions.

Economy:

  • Economic growth is predicted to reach 3.25 per cent in 2022-23 but will slow to 1.5 per cent next fiscal year, as Treasury downgrades the nation's forecasts.
  • Unemployment is expected to hit 4.5 per cent in 2023-24 and 2024-25.
  • Inflation is forecast to peak at 7.75 per cent in late 2022 and fall to 3.5 per cent next financial year. It is expected to reach the Reserve Bank's target range in 2024-25.
  • The government says real wages will start growing again in 2024 - when wage rises will overtake inflation.
  • The deficit next financial year will be $36.9 billion, an improvement of $41.1 billion.

Education:

  • Fee-free TAFE and vocational education places will grow under a $1 billion plan to increase the number of trade apprentices. The government's goal is to fund 480,000 fee-free TAFE courses, including 180,000 next year, in industries and regions with skills shortages.
  • University places will also grow for disadvantaged students. The government will spend $486 million to create 20,000 new places, starting in 2023 and 2024.

First Nations:

  • The government will provide $75 million over two years from next fiscal year to prepare the delivery of a referendum on a First Nations Voice to Parliament in the Constitution.

Climate Change:

  • The government is pouring $20 billion into energy transmission as a way to reduce emissions. The fund will provide concessional loans and equity to invest in transmission infrastructure projects that Labor says will increase storage capacity and lower energy prices.
  • More than $800 million is promised in tax cuts for electric cars, a national vehicle charging network, and solar battery storage for up to 100,000 homes.
  • The government wants to bolster its public service advice on climate change. It's giving the Climate Change Authority $43 million over four years to provide independent advice.
  • About $225 million over four years will fund government efforts to try slowing the alarming rate of native species decline in Australia.

Communications:

  • The government will spend $758 million over five years from 2022-23 to improve mobile and broadband coverage in regional areas, including $400 million to roll out mobile base stations.
  • More NBN upgrades are on the way. The government will provide an equity investment of $2.4 billion to NBN Co over four years to upgrade the National Broadband Network and deliver fibre-ready access to an additional 1.5 million premises by 2025.

Infrastructure:

  • About $8 billion in spending over the next decade will fund priority rail and road infrastructure projects.
  • The aviation sector is receiving government funding, including $140 million over three years from 2022-23 for upgrades to the Hobart Airport runway and airfield facilities, and border service facilities at the Newcastle Airport international terminal.

Public Service:

  • Average staffing levels will boom, growing from 173,000 to 181,000 in 2022-23.
  • The Tax Office will expand as the government uses it to spearhead efforts to plug leaks in the nation's tax system.
  • The government is also ripping $3.6 billion from public service spending on external labour, advertising, travel and legal expenses, flagging most of the cuts will arrive in 2025-26.