The last two years have been tough for our country. There have been setbacks along the way.
But Australia has overcome the biggest economic shock since the Great Depression.
Our recovery leads the world – faster and stronger than the United States, the United Kingdom, Canada, France, Germany, Italy and Japan.
Unemployment is at 4 per cent, the equal lowest in 48 years.
This Budget delivers the largest improvement to the Budget bottom line in over 70 years.
The 2022-23 Budget delivers:
- Cost of living relief now.
- A long-term economic plan that creates more jobs.
- Record investments in essential services.
- Stronger defence and national security.
This Budget will deliver strong economy and a stronger future.
- Tax cuts to put more money in people’s pockets.
- Business incentives to unleash a further wave of investment.
- New apprenticeships and training places to get more Australians into work.
- A $110 billion infrastructure pipeline to build our nation’s future.
- Record funding to guarantee the essential services Australians rely on.
This Budget will ensure we come back even stronger, securing Australia’s recovery.
The Hon. Josh Frydenberg MP
AUSTRALIA’S ECONOMIC RECOVERY
Australia’s economic recovery leads the world – stronger than the United States, the United Kingdom, Canada, France, Germany, Italy and Japan.
Unemployment is at 4%, the equal lowest in 48 years.
This Budget also delivers the largest improvement to the Budget bottom line in over 70 years.
Over five years, the Budget will be over $103 billion better off (compared to last year’s Budget projections).
Our economic plan is working.
JobKeeper saved 700,000 jobs. Homebuilder helped more than 100,000 Australians into a home.
Taxes are lower for more than 11 million Australians and 3.6 million small businesses and sole traders.
Australia is one of nine countries to hold a AAA credit rating from the three leading credit agencies.
LONG TERM PLAN FOR JOBS
By backing small businesses, and investing in skills, manufacturing, infrastructure, energy and regional development, the Budget will strengthen our economy and create more jobs.
Our government has backed small businesses with the lowest tax rates in 50 years (reduced from 30% to 25%) and investment incentives, like the instant asset write off.
To further encourage small businesses, a $120 deduction will be provided for every $100 spent on training staff, or on digital technologies.
There are now 220,000 trade apprentices – the highest number on record.
To encourage more apprentices, we will provide $5,000 payments to new apprentices and up to $15,000 in wage subsidies for employers.
Our plan will increasing Australia’s self-reliance and solve vulnerabilities in our supply chains.
Victoria the first place in the southern hemisphere to manufacture mRNA vaccines.
New funding will drive collaboration between universities, CSIRO and industry to rapidly commercialise new technologies in clean energy, medical supplies, defence and other priority areas.
And a new patent box for the agriculture and low-emissions technology sectors will see income from new patents developed in Australia taxed at almost half the rate that applies to large companies.
Our record $120 billion infrastructure pipeline is supporting around 120,000 jobs under construction.
Nation building projects like the Melbourne to Brisbane Inland Rail, the new Western Sydney international airport and Snowy 2.0 are well underway.
The Budget includes new commitments to road and rail projects, that will build our future.
Unprecedented regional investment will fast track development across four areas of national significance – unlocking new economic frontiers for agriculture, infrastructure and energy.
COST OF LIVING RELIEF
Events abroad are pushing up the cost of living at home.
Higher fuel, food and shipping costs are increasing inflation and stretching household budgets.
The Morrison Government is introducing a new temporary, targeted and responsible cost of living package to ease these pressures.
For the next six months, fuel excise will be cut in half.
Australians will save 22 cents a litre every time they fill up their car.
A family with two cars who fill up once a week will save $30 a week, or more than $700 over the next six months.
This cut in fuel excise, which takes effect from midnight tonight, will flow through to the bowser over the next 2 weeks.
The competition watchdog (the ACCC) will monitor retailers to make sure these savings are passed on in full.
This temporary reduction in fuel excise will not come at a cost to road funding, which will see more than $12 billion spent in the coming year.
A new one-off $420 Cost of Living Tax Offset will be provided for more than 10 million low-and-middle income earners.
This means people receiving the low-and-middle income tax offset will get up to $1,500 and couples up to $3,000 from 1 July this year.
This measure comes on top of the $40 billion in tax relief already provided by our Government since the start of the pandemic.
A new one-off $250 Cost of Living Payment will be delivered to six million Australians, including pensioners, carers, veterans, job seekers, eligible self-funded retirees and concession card holders.
Together, with existing indexation arrangements, this will see a single pensioner receive more than $500 in additional support, just when they need it most.
To provide further cost of living relief, 2.4 million Australians will get greater access to cheaper medicines.
Australians will need fewer scripts before they are eligible for free or further discounted medicines.
SUPPORTING SMALL BUSINESS
Small and family businesses are at the heart of our economy and local communities, employing nearly 8 million Australians.
Our Government has backed small businesses, including with:
- Reduced tax rates – from 30% when we were elected, to 25% now (the lowest level in 50 years).
- Record investment incentives – including the instant asset write off.
We are going further, by rewarding small businesses that invest in skills and new technology.
- For every hundred dollars a small business spends on training their employees, they will get a $120 tax deduction.
- For every hundred dollars a small business spends on digital technologies (like cloud computing, eInvoicing and cyber security and web design) they will get a $120 tax deduction (on expenditure up to $100,000 per year)
INVESTMENT IN SKILLS AND EDUCATION
Australia’s unemployment rate is heading towards a 50-year low.
This means we have an historic opportunity to get young Australians into skilled, secure and well-paid jobs.
During this pandemic, we have already invested $13 billion in skills and training.
A record 220,000 Australians are now in a trade apprenticeship – the highest level since records began in 1963.
A new $2.8 billion investment will increase take up and completion rates, by providing:
- $5,000 payments to new apprentices.
- Up to $15,000 in wage subsidies for employers who take them on.
This Budget also lays the foundations for national skills reform with a $3.7 billion investment, supporting an additional 800,000 training places.
We are also funding new and expanded programs to help find employment for disadvantaged youth, Indigenous Australians, the mature aged and Australians with a disability.
Skilling Australians is a key part of our plan for a stronger future.
Since coming to government in 2013, education funding under our Government has nearly doubled.
More than 30,000 new places were created at universities last year.
This Budget continues to invest in these critical areas.
STRONGER DEFENCE AND SECURITY
The previous Labor Government allowed defence spending to fall to its lowest level since 1938.
We have put in place a ten-year defence capability plan, supporting more than 100,000 jobs.
Hobart Class Air Warfare Destroyers, built in South Australia, are now in the water.
Combat reconnaissance vehicles, maintained in Queensland, are now in service.
F-35A Joint Strike Fighters (with parts made in Western Sydney) are now in the air.
We are expanding the size of our Defence workforce by 30%, to over 100,000.
We are deepening strategic partnerships through agreements such as AUKUS and the Quad.
We are making the biggest ever investment in Australia’s cyber preparedness – a 10 year, $9.9 billion investment in Australia’s offensive and defensive cyber capabilities.
Creating 1,900 jobs – more data analysts, computer programmers, and software engineers – to boost our capacity to prevent and respond to cyber threats.
In this Budget we provide further funding to support homecare services for 37,000 veterans and their families, as well as extending other programs supporting the wellbeing and mental health of our veterans.
TURNING REGIONS IN ECONOMIC POWERHOUSES
The Liberal National Coalition has committed over $100 billion to strengthen regional economies since 2013.
Now, an unprecedented regional investment package will make transformational investments in agriculture, infrastructure and energy. This plan will:
- Develop the Northern Territory – building on its position as the gateway to Asia and the north.
- Strengthen North and Central Queensland – to grow the food bowl.
- Invest in the Pilbara in WA to establish the region as a major hub for new industries.
- Invest in the Hunter in NSW to make the region a leader in clean energy exports (including hydrogen).
This will unlock new economic frontiers and grow our national economy.
Our regional package also includes major new investments in water projects, a new regional accelerator, telecommunications and health, including:
- A new $7.4 billion investment in more dams and water projects.
- A new $2 billion regional accelerator program to invest in skills, education infrastructure, export market development and supply chain resilience for our regions.
- A new $1.3 billion telecommunications package to expand mobile coverage across 8,000km of regional transport routes.
- More training places for doctors at regional universities and better access to MRI machines, mental health services and childcare centres.
Our $120 billion infrastructure pipeline has already completed over 35,000 projects.
Nation building projects like the Melbourne to Brisbane Inland Rail, the new Western Sydney international airport and Snowy 2.0 are well underway.
This Budget includes new commitments for road and rail projects, including:
- Brisbane to Sunshine Coast faster rail.
- Sydney to Newcastle faster rail.
- METRONET in Western Australia.
- The North South Corridor in South Australia.
- Great Eastern Drive in Tasmania.
- Central Australian Tourism Roads in the Northern Territory.
- Melbourne Intermodal Terminals, to increase the efficiency of the national freight network.
More than $500 million is being provided for local councils for priority projects.
An additional $880 million will better connect regional Australia with ports, airports and other transport hubs.
BETTER HEALTH AND ESSENTIAL SERVICES
Our Government has delivered record funding for schools, hospitals, Medicare, mental health, aged care, women’s safety and disability support.
Our Government has increased federal funding for hospitals from $13.3 billion (2012-13) to $25.2 billion (2021-22).
Bulk billing rates are at a record high of 88.8% (up from 82.2% when we came into Government).
We have approved more than 2,800 new or amended listings on the Pharmaceutical Benefits Scheme.
This Budget includes the PBS listing of Trodelvy, for a rare form of breast cancer.
The Budget includes new funding for:
- More vaccines, testing and treatment and PPE to boost our National Medical Stockpile ahead of winter.
- More headspace services, community-based treatment centres and digital mental health support.
- A substantial women’s health package including stillbirth and miscarriage support, new endometriosis clinics and greater access to breast and cervical cancer screenings.
Since we have come to government, funding for aged care has doubled.
In last year’s Budget, the Government outlined a new five-year $17.7 billion plan for the sector – with new home care packages, respite services, training places, retention bonuses and infrastructure upgrades.
Under this plan, 40,000 home care packages, 34,000 additional training places, 7,000 new personal care workers and 8,400 respite services will be rolled out this year.
This Budget provides more than $340 million to embed pharmacy services within residential aged care facilities to improve medication management for the elderly.
When we came to government, federal funding for disability support was half of what it is today.
Now, the NDIS has changed the lives of 500,000 Australians and their families.
NDIS funding is growing in every year. With the Coalition Government, it will always be fully funded.
SUPPORTING HOME OWNERSHIP
Over the last year, 160,000 Australians purchased their first home.
HomeBuilder, the First Home Super Saver Scheme and the Home Guarantee Scheme have helped make the dream of home ownership a reality.
The Home Guarantee Scheme will now be more than doubled to 50,000 places per year. This helps:
- single parents buy a home, with a deposit as low as 2%.
- first home buyers buy a home, with a deposit as low as 5%.
An additional $2 billion will support low cost financing for affordable housing through the National Housing Finance and Investment Corporation.
PROTECTING OUR ENVIRONMENT
Australia is on the pathway to Net Zero emissions by 2050 through technology, not taxes.
Already, Australia has the highest uptake of rooftop solar in the world.
We are investing in clean hydrogen, carbon capture and storage, batteries and large-scale solar.
This Budget makes further investments in microgrids to support regional and remote communities that don’t otherwise have access to the grid.
We are also continuing to reduce waste through our Recycling Modernisation Fund.
This will save 10 million tonnes of recyclables from landfill every year by 2030 and create over 10,000 jobs in the process.
To protect our environment, we are also:
- Expanding the Indigenous Rangers Program so more than 1,000 new rangers can undertake land and sea management.
- Investing an additional $1 billion in world-leading marine science to protect the Great Barrier Reef.
- Enhancing our scientific capability in the Antarctic, funding research and environmental management.
- Providing $170 million to restore the habitat of threatened species including our Koalas.
WOMEN’S SAFETY AND ECONOMIC SECURITY
Female workforce participation is at a record high and female unemployment is at its lowest level since 1974.
But there is more to do.
The Morrison Government is expanding eligibility to Paid Parental Leave and providing families with full flexibility and greater choice.
More families will be able to access 20 weeks of leave and decide how they will share it between carers.
For the first time, single parents will now be able to access the full 20 weeks.
180,000 new parents who access Paid Parental Leave each year will benefit from these changes.
This Budget includes a substantial new women’s health package, including:
- Stillbirth and miscarriage support
- The establishment of new endometriosis clinics.
- Greater access to breast and cervical cancer screenings.
One in four women are subject to domestic violence and tragically every eleven days, an Australian woman loses her life at the hands of her current or former partner.
In last year’s Budget, we committed $1.1 billion for prevention, early intervention, response and recovery programs.
This Budget goes further with a new $1.3 billion package to help end violence.
It includes more frontline services, emergency accommodation, and support to access legal and health services for women and children in need.