Below you will find a list of 12 significant aspects of the 2022 Australian Federal Budget which are relevant to Australian businesses.

1. Higher worker participation and job creation
   • Women with children will have childcare costs further subsidised to allow more to join the workforce (July 2023.)
   • An increase in parental leave payment time for both parents paid by the government.
   • Additional staff are processing visas faster for incoming international workers including backpackers boosting immigration and the pool of available workers.
   • Free TAFE courses to upskill into vocational jobs where there is a demand (480,000 places) = training for higher wage opportunities.
   • As previously announced pensioners will be able to work part-time increasing their wage from $7,800 to $11,800 without affecting their pension, an addition to the existing workforce.
   • A new energy apprentice scheme for 10,000 workers.
   • Work requirements for international students will be relaxed until July 2023.
2. Energy efficient grants for small and medium businesses.
   • $62m to upgrade inefficient equipment.
3. Housing
   • The government will participate in the construction of one million low-cost new houses over the next five years together with investors, with a percentage of these in the affordable bracket.
4. Made in Australia
   • Concentration on support for replacing imports with Australian-made products and services in the manufacturing, agriculture and technology sectors.
5. Wage growth
   • A wage growth of half a percent is forecast for the coming year.
6. Electricity and Gas
   • Increases in the price of electricity are expected to rise by about 50% over the coming year due to the war in Ukraine and international supply issues.
7. Regional Internet & Phone Access
   • Improvements in access mobile & broadband access in regional and outer suburban areas.
8. Electric Vehicles
   • Cutting tax on purchases of electric vehicles
   • A national electric vehicle charging network.
9. Disaster Assistance Payments
   • $51.5m in this financial year to support Australians hit by natural disasters including this year’s floods and the ongoing recovery from the 2019-20 Black Summer bushfires.
10. Infrastructure
    • $9.6bn infrastructure package includes funding for the construction of road and rail projects across Australia, including $300m for western Sydney roads, $2.2bn for the Suburban Rail Link in Victoria and more than $1bn for roads in Queensland and Tasmania.
11. Truck companies
    • Heavy Vehicle Road User Charge rate for diesel increases from 26.4 cents per litre to 27.2 cents per litre.
12. The National Reconstruction Fund
    • $15b will provide loans, guarantees, and equity, in partnership with private sector proponents, across seven priority sectors:
      1. agriculture,
      2. forestry and fisheries,
      3. medical,
      4. science,
      5. renewables and low emission technologies,
      6. defence capability &
      7. transport enabling capabilities.
    • This is aimed at productivity and growth.

 Comments

This is not a comprehensive list of the targeted budget measures which are detailed in the Budget Document of over 300 pages.There are many other points not discussed here, including IR changes.

Detailed changes to taxation can & should be discussed with your accountant.

Jobstar Australia assesses this budget as being responsible in a global downturn. We expect to see further changes in the 2023 May Budget.

The Treasurer believes that Australia is well-positioned to avoid a recession.