OLIVIA CHAN | NEWS
With much anticipation, the Federal Budget dropped on 29 March 2022 at 7:30pm. So, what does it entail? We’ve split it up into easy-to-understand sections for you to take a look at what affects you the most.
Motorists: Cheaper Fuel (Temporarily)
Halved flat tax levied per litre of fuel for the next 6 months, which translates to saving 22 cents per litre.
Enforced by the Australian Competition and Consumer Commission (ACCC) who will monitor fuel prices to prevent retailers from making larger profits.
Taxpayers: More Tax Returns
Low- and middle-income earners will receive an extra $420 back on tax returns.
Low and middle tax offset remains for another year so some may receive up to $1500 on tax returns.
Renewables: Nothing New
No new direct funding for renewable energy projects.
Just under $250 million invested over 5 years to support low emissions technologies.
Women: Finally Getting Recognition
Combined Parental Leave Pay so parents can split leave in any form.
Single parents (81% women) may access 20 weeks of leave.
Income test for Parental Leave Pay to include a household income threshold of $35 thousand per year.
Listing of Trodelvy (medication to treat a rare form of breast cancer) on Pharmaceutical Benefits Scheme.
$58 million next 4 years to help women with endometriosis.
$181 million program for genetic testing for conditions for couples planning pregnancy.
$1.3 billion over next 6 years for measures and programs in the National Plan to End Violence Against Women and Children.
$54.6 million over next 5 years towards the 'Keeping Women Safe in their Homes' program (technology to prevent tracking by abusive partners).
Aged Care: Not Aging Well
No increase to aged care workers' pay.
$49.5 million to subsidise 15 000 vocational education and training places for those already in, or looking to enter, the aged care workforce.
$340 million to place pharmacy services in residential aged care homes to improve medication management in facilities.
Regional Australia: Bob the Builder
$7.1 billion over 11 years for a new 'Energy Security and Regional Development Plan', which translates to co-investments to upgrade ports and roads, build dams and logistic hubs.
$2 billion for a 'Regional Accelerator Program', which translates to a combination of existing schemes designed to improve skills, education, exports, and supply chains.
$800 million to improve mobile phone coverage in the outback.
Wages: Negative Stonks
Wages not to grow until later this year (earliest) due to high inflation (4.25%).
Refugees: A New Place To Call Home
$665.9 million over next 4 years for additional 16 500 places for Afghan nationals (total >30000).
Ukrainians allowed temporary humanitarian visas to stay in Australia for up to 3 years.
$9.2 million for existing youth support services.
$1 million over 5 years to create a Human Rights Advocacy Program.
Welfare Recipients: Short Term $$$
Pensioners, carers, veterans, job seekers, other eligible concession cardholders, and some self-funded retirees, will receive a one-off $250 payment.
This will go to approximately 6 million people.
Environment: Little Changes
$100 million over 3 years to support community-driven action to restore the environment.
$20.3 million over next 3 years to plant trees to mark Queen's platinum jubilee.
$53 million over 5 years for koala conservation and protection.
$26.8 million over 5 years for management and protection of Commonwealth National parks.
Indigenous Rangers: Increased Workforce
$636.4 million for an extra 2000 ranger jobs by 2028 in regional and remote parts of the country.
Foreign Aid: Small Increase
Ending the freeze on indexation of funding, so it will increase by 2.5% in the coming year.
More than $460 million in temporary and targeted measures (e.g. Vaccine delivery to Pacific).
Brings to a total of $4.549 billion per year.
First Home Buyers: Will Housing Prices Ever Go Down?
$8.6 million over the next 4 years.
People only need a 5% deposit to buy a house with no lender’s mortgage insurance (LMI) in the extended First Home Buyers Scheme.
10000 places increased to 35000 places per year.
Introducing a Regional Housing Scheme with 10000 places per year starting from 1 October for first home buyers or people who haven't owned property in the last 5 years.
Extends to Family Home Guarantee scheme aimed at helping single parents buy a first home or to re-enter the property market so eligible people only need a 2% deposit to buy a house and no LMI.
Apprentices: For The “Prioritised”
New Australian Apprenticeships Incentive Scheme will offer 10% wage subsidies for first- and second-year apprentices, and 5% for third-year apprentices on a list of "priority occupations".
Those who work in "non-priority" occupations will receive a one-off payment of $3500.
Those who work in "priority" occupations will receive $5000 direct cash payments over the first 2 years.
From July 2024: Wage subsidies replaced with $4000 hiring incentive for employers and $3000 for apprentices on "priority" list.
Mental Health: Creating a “Healthy” Country?
$500 million over next 5 years for next stage of National Mental Health and Suicide Prevention Plan.
10 partially-Medicare subsidised visits to a psychologist.
Farmers: Net-Zero Goals
$100 million over 4 years for tax break for farmers who make money selling carbon credits.
Existing initiatives to streamline exports and protect Australian agriculture from biosecurity risks.
Draught Beer Retailers: Sorry, Boys
No relief in this budget.
Cyber-Spyers: Alexa Play The Spy Music
$9.9 billion for Australian Signals Directorate (ASD) over next 10 years to boost cybersecurity and intelligence capabilities.
REDSPICE (Resilience, Effects, Defence, Space, Intelligence, Cyber, and Enablers) package will provide more than 1900 jobs at ASD.
Recycling: Plastic Waste Begone
$250 million to find new and innovative ways to make recycling more efficient.
Includes $60 million to better fund technology to recycle soft plastics.
Young People: No Changes (Unfortunately)
No changes in budget for students at university/TAFE.
First home buyers scheme may help some young people.
Mental health funding may help young people.
Great Barrier Reef: We Found Nemo
$1 billion to improve water quality, reef management, and research.
Tax Evaders: You Win Some, You Lose Lots
Government taskforce to target tax evaders by multinational corporations, large public and private groups, trusts, and wealthy individuals.
Under $600 million over next 3 years to ATO to target these groups.
The above is forecasted to earn the government $2.1 billion revenue from tax over next 4 years.