We have pleasure in enclosing a summary of the highlights from the Federal Government’s May 2023/24 Budget.
Amending measures of the former Government
The Government will amend measures announced by the former Government to provide greater certainty to taxpayers, including:
Amend the non-arm’s length income (NALI) provisions which apply to expenditure incurred by superannuation funds by:
– limiting income of self-managed superannuation funds and small Australian Prudential Regulation Authority (APRA) regulated funds that are taxable as NALI to twice the level of a general expense. Additionally, fund income taxable as NALI will exclude contributions
– exempting large APRA regulated funds from the NALI provisions for both general and specific expenses of the fund
– exempting expenditure that occurred prior to the 2018-19 income year.
Source: Budget Paper No 2, p 14.
Better Targeted Superannuation Concessions
The Government will reduce the tax concessions available to individuals with a total superannuation balance exceeding $3 million, from 1 July 2025.
Individuals with a total superannuation balance of less than $3 million will not be affected.
This reform is intended to ensure generous superannuation concessions are better targeted and sustainable. It will bring the headline tax rate to 30 per cent, up from 15 per cent, for earnings corresponding to the proportion of an individual’s total superannuation balance that is greater than $3 million. This rate remains lower than the top marginal tax rate of 45 per cent. Earnings relating to assets below the $3 million threshold will continue to be taxed at 15 per cent or zero per cent if held in a retirement pension account.
Interests in defined benefit schemes will be appropriately valued and will have earnings
taxed under this measure in a similar way to other interests. This will ensure commensurate treatment.
The additional tax on earnings imposed by this measure will impact around 80,000
individuals in 2025–26, or approximately 0.5 per cent of individuals with a superannuation account. The measure will not place a limit on the amount of money an individual can hold in superannuation. The current contributions rules continue to apply.
This measure is estimated to increase receipts by $950.0 million and increase payments by $47.6 million over the 5 years from 2022–23. This includes $50.0 million in receipts associated with updating the notional contribution calculation methodology, applicable to all defined benefit members. In 2027–28, the first full year of receipts collection, the measure is expected to increase receipts by $2.3 billion.
This measure is consistent with the Government’s proposed objective of superannuation, to deliver income for a dignified retirement in an equitable and sustainable way.
Source: Budget Paper No 2, p 15.
Extending the Personal Income Tax Compliance Program
The Government will provide $89.6 million to the ATO and $1.2 million to Treasury to
extend the Personal Income Tax Compliance Program for two years from 1 July 2025 and expand its scope from 1 July 2023.
This extension will enable the ATO to continue to deliver a combination of proactive,
preventative and corrective activities in key areas of non-compliance, and to expand the
scope of the program to address emerging areas of risk, such as deductions relating to
short-term rental properties to ensure they are genuinely available to rent.
This measure is estimated to increase receipts by $474.9 million and increase payments by $90.8 million over the 5 years from 2022–23.
Source: Budget Paper No 2, p 16,17.
Extending the clean building managed investment trust withholding tax concession
The Government will extend the clean building managed investment trust (MIT)
withholding tax concession to data centres and warehouses.
This measure will extend eligibility for the concession to data centres and warehouses that meet the relevant energy efficiency standard, where construction commences after
7:30 PM (AEST) on 9 May 2023 (Budget night). This measure will apply from 1 July 2025.
This measure will also raise the minimum energy efficiency requirements for existing and
new clean buildings to a 6-star rating from the Green Building Council Australia or a 6-star rating under the National Australian Built Environment Rating System. The Government will consult on transitional arrangements for existing buildings. These changes will support investment in energy efficient commercial buildings, and in turn, reduce energy usage and energy bills for commercial tenants.
This measure is estimated to result in an unquantifiable decrease in receipts over the
5 years from 2022–23.
Source: Budget Paper No 2, p 18.
GST compliance program – four-year extension
The Government will provide $588.8 million to the ATO over 4 years from 1 July 2023 to continue a range of activities that promote GST compliance. This measure is estimated to increase GST receipts by $3.8 billion, and other tax receipts by $3.8 billion, over the 5 years from 2022–23.
These activities will ensure businesses meet their tax obligations, including accurately accounting for and remitting GST, and correctly claiming GST refunds. Funding through this extension will also help the ATO develop more sophisticated analytical tools to combat emerging risks to the GST system.
This measure is estimated to increase receipts by $7.6 billion and increase payments by $3.8 billion over the 5 years from 2022–23.
Arrangements for funding these activities have been agreed by the states and territories in accordance with the GST Administration Performance Agreement.
Source: Budget Paper No 2, p 19.
Housing (Build-To-Rent Developments) – accelerating tax deductions and reducing managed investment trust withholding tax rate
For eligible new build-to-rent projects where construction commences after 7:30 PM (AEST) on 9 May 2023 (Budget night), the Government will:
- increase the rate for the capital works tax deduction (depreciation) to 4 per cent per year
- reduce the final withholding tax rate on eligible fund payments from managed
investment trust (MIT) investments from 30 per cent to 15 per cent.
This measure will encourage investment and construction in the build-to-rent sector,
expanding Australia’s housing supply.
This measure will apply to build-to-rent projects consisting of 50 or more apartments or
dwellings made available for rent to the general public. The dwellings must be retained
under single ownership for at least 10 years before being able to be sold and landlords must offer a lease term of at least 3 years for each dwelling.
The reduced managed investment trust withholding tax rate for residential build-to-rent
will apply from 1 July 2024. Consultation will be undertaken on implementation details,
including any minimum proportion of dwellings being offered as affordable tenancies and
the length of time dwellings must be retained under single ownership.
This measure is estimated to decrease receipts by $30.0 million and increase payments by $4.3 million over the 5 years from 2022–23.
Source: Budget Paper No 2, p 19,20.
Implementation of a global minimum tax and a domestic minimum tax
The Government will implement key aspects of Pillar Two of the OECD/G20 Two-Pillar
Solution to address the tax challenges arising from digitalisation of the economy:
i) A 15 per cent global minimum tax for large multinational enterprises with the Income
Inclusion Rule applying to income years starting on or after 1 January 2024 and the
Undertaxed Profits Rule applying to income years starting on or after 1 January 2025.
ii) A 15 per cent domestic minimum tax applying to income years starting on or after
1 January 2024.
The global minimum tax and domestic minimum tax will be based on the OECD Global
Anti-Base Erosion Model Rules, which are designed to ensure large multinationals pay an
effective minimum level of tax on the income arising in each jurisdiction where they
operate.
A global minimum corporate tax rate of 15 per cent prevents a ‘race to the bottom’ on
corporate tax rates, and protects our corporate tax base. The global minimum tax rules
would allow Australia to apply a top up tax on a resident multinational parent or
subsidiary company where the group’s income is taxed below 15 per cent overseas.
A domestic minimum tax would give Australia first claim on top-up tax for any low-taxed
domestic income. In a small number of instances, a large multinational company’s effective Australian tax rate may fall below 15 per cent. In these instances, the domestic minimum tax applies so that Australia collects the revenue that would otherwise have been collected by another country’s global minimum tax.
The global minimum tax and domestic minimum tax will apply to large multinationals
with annual global revenue of EUR750 million (approximately $1.2 billion) or more.
This measure is estimated to increase receipts by $370.0 million and increase payments by $111.0 million over the 5 years from 2022–23.
This measure progresses the Government’s election commitment as published in the Plan for a Better Future
Source: Budget Paper No 2, p 20, 21.
Personal Income Tax – exempting lump sum payments in arrears from the Medicare levy
The Government will exempt eligible lump sum payments in arrears from the Medicare
levy from 1 July 2024.
This measure will ensure low-income taxpayers do not pay higher amounts of the Medicare levy as a result of receiving an eligible lump sum payment, for example as compensation for underpaid wages.
Eligibility requirements will ensure that relief is targeted to taxpayers who are genuinely
low-income and should be eligible for a reduced Medicare levy. To qualify, taxpayers must be eligible for a reduction in the Medicare levy in the 2 most recent years to which the lump sum accrues. Taxpayers must also satisfy the existing eligibility requirements of the existing lump sum payment in arrears tax offset, including that a lump sum accounts for at least 10 per cent of the taxpayer’s income in the year of receipt.
This measure is estimated to decrease receipts by $2.0 million over the 5 years from 2022–23.
Source: Budget Paper No 2, p 22.
Personal Income Tax – increasing the Medicare levy low-income thresholds
The Government will increase the Medicare levy low-income thresholds for singles,
families and seniors and pensioners from 1 July 2022. The increase in thresholds provides cost-of-living relief by taking account of recent CPI outcomes so that low-income individuals continue to be exempt from paying the Medicare levy.
The threshold for singles will be increased from $23,365 to $24,276. The family threshold will be increased from $39,402 to $40,939. For single seniors and pensioners, the threshold will be increased from $36,925 to $38,365. The family threshold for seniors and pensioners will be increased from $51,401 to $53,406. For each dependent child or student, the family income thresholds will increase by a further $3,760 instead of the previous amount of $3,619.
This measure is estimated to decrease receipts by $460.0 million over the 5 years from
2022–23.
Source: Budget Paper No 2, p 22.
Powering Australia – amendment to the Electric Car Discount
The Government will sunset the eligibility of plug-in hybrid electric cars from the fringe
benefits tax exemption for eligible electric cars. This change will apply from 1 April 2025.
Arrangements involving plug-in hybrid electric cars entered into between 1 July 2022 and 31 March 2025 remain eligible for the Electric Car Discount.
This measure is estimated to increase receipts by $30.0 million and increase GST payments to the states and territories by $5.0 million over the 5 years from 2022–23.
This measure relates to the 2022–23 October Budget measure titled Powering Australia –
Electric Car Discount.
Source: Budget Paper No 2, p 25.
Securing Australians’ Superannuation Package – increasing the payment frequency of the Superannuation Guarantee (SG) and investing in SG compliance
From 1 July 2026, employers will be required to pay their employees’ SG entitlements on
the same day that they pay salary and wages.
Currently, employers are only required to pay their employees’ SG on a quarterly basis. By increasing the payment frequency of superannuation to align with the payment of salary and wages, this measure will both ensure employees have greater visibility over whether their entitlements have been paid and better enable the ATO to recover unpaid superannuation. Increased frequency of payment will also support better retirement outcomes. A 1 July 2026 commencement date will allow the ATO, payroll service providers and superannuation funds time to make necessary system changes and for employers to adjust their cash flow practices.
Changes to the design of the SG charge will also be necessary to align with increased payment frequency. The Government will consult with relevant stakeholders on the design of these changes, with the final design to be considered as part of the 2024–25 Budget.
These changes are estimated to increase receipts by $835.0 million and decrease payments by $285.0 million in 2026–27, due to the bring forward of superannuation tax receipts on SG contributions. However, this effect will be immediately offset by the associated company tax deductions of SG payments in 2027–28. Over the medium-term from 2022–23 to 2033–34 the proposal is estimated to reduce the underlying cash balance by $256.6 million as there will be less SG charge debt raised due to increased compliance.
The Government will also provide $40.2 million to the ATO in 2023–24, which includes $27.0 million for the ATO to improve data matching capabilities to identify and act on cases of SG underpayment by employers and $13.2 million for consultation and co-design.
In total, this package is estimated to increase receipts by $835.0 million and decrease payments by $243.1 million over the 5 years from 2022–23.
This package will particularly benefit those in lower paid, casual and insecure work who are more likely to miss out when super is paid less frequently.
The package will also deliver on the Government’s election commitment to set public targets for the ATO on recovering unpaid superannuation. The ATO will report annually against new measures set out in the
Treasury Portfolio Budget Statement.
Source: Budget Paper No 2, p 26, 27.
Small Business Support – helping small business manage their tax instalments and improving cashflow
The Government will amend the tax law to set the GDP adjustment factor for pay as you go (PAYG) and GST instalments at 6 per cent for the 2023–24 income year, a reduction from 12 per cent under the statutory formula.
The reduced factor will provide cash flow support to small businesses and other PAYG instalment taxpayers.
The 6 per cent GDP adjustment rate will apply to small businesses and individuals who are eligible to use the relevant instalment methods (up to $10 million aggregated annual turnover for GST instalments and $50 million annual aggregate turnover for PAYG instalments), in respect of instalments that relate to the 2023–24 income year and fall due after the enabling legislation receives Royal Assent.
This measure is estimated to have no net impact on receipts, and no net impact on GST payments to the states and territories, over the 5 years from 2022–23.
Source: Budget Paper No 2, p 27.
Small Business Support – $20,000 instant asset write-off
The Government will improve cash flow and reduce compliance costs for small businesses by temporarily increasing the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.
Small businesses, with aggregated annual turnover of less than $10 million, will be able to immediately deduct the full cost of eligible assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024. The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets.
Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool and depreciated at
15 per cent in the first income year and 30 per cent each income year thereafter.
The provisions that prevent small businesses from re-entering the simplified depreciation
regime for 5 years if they opt-out will continue to be suspended until 30 June 2024.
This measure is estimated to decrease receipts by $290.0 million over the 5 years from 2022–23.
Source: Budget Paper No 2, p 27, 28.
Small Business Support – Small Business Energy Incentive
The Government will support small and medium businesses to save on energy bills through incentivising the electrification of assets and improvements to energy efficiency.
Small and medium businesses, with aggregated annual turnover of less than $50 million,
will be able to deduct an additional 20 per cent of the cost of eligible depreciating assets
that support electrification and more efficient use of energy. Up to $100,000 of total
expenditure will be eligible for the Small Business Energy Incentive, with the maximum
bonus deduction being $20,000.
A range of depreciating assets, as well as upgrades to existing assets, will be eligible for the Small Business Energy Incentive. These will include assets that upgrade to more efficient electrical goods such as energy-efficient fridges, assets that support electrification such as heat pumps and electric heating or cooling systems, and demand management assets such as batteries or thermal energy storage. Full details of eligibility criteria will be finalised in consultation with stakeholders.
Eligible assets will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024. Eligible upgrades will also need to be made in this period.
Certain exclusions will apply such as electric vehicles, renewable electricity generation
assets, capital works, and assets that are not connected to the electricity grid and use fossil fuels.
This measure is estimated to decrease receipts by $310.0 million and increase payments by $4.2 million over the 5 years from 2022–23.
Source: Budget Paper No 2, p 28.
Tax Integrity – expanding the general anti-avoidance rule in the income tax law
The Government will improve the integrity of the tax system by expanding the scope of the general anti-avoidance rule for income tax (Part IVA of the Income Tax Assessment Act 1936) so that it can apply to:
- schemes that reduce tax paid in Australia by accessing a lower withholding tax rate on
income paid to foreign residents
- schemes that achieve an Australian income tax benefit, even where the dominant
purpose was to reduce foreign income tax.
This measure will apply to income years commencing on or after 1 July 2024, regardless of whether the scheme was entered into before that date.
This measure is estimated to result in an unquantifiable increase in receipts over the 5 years from 2022–23.
Source: Budget Paper No 2, p 29.
Tax Integrity – improving engagement with taxpayers to ensure timely payment of tax and superannuation liabilities
The Government will provide funding over 4 years from 1 July 2023 to enable the ATO to
engage more effectively with businesses to address the growth of tax and superannuation liabilities.
The additional funding will facilitate ATO engagement with taxpayers who have
high-value debts over $100,000 and aged debts older than two years where those taxpayers are either public and multinational groups with an aggregated turnover of greater than $10 million, or privately owned groups or individuals controlling over $5 million of net wealth.
A lodgment penalty amnesty program is being provided for small businesses with
aggregate turnover of less than $10 million to encourage them to re-engage with the tax
system. The amnesty will remit failure-to-lodge penalties for outstanding tax statements
lodged in the period from 1 June 2023 to 31 December 2023 that were originally due during the period from 1 December 2019 to 29 February 2022.
This measure is estimated to increase receipts by $718.0 million and increase payments by $275.4 million over the 5 years from 2022–23. In addition to the $82.1 million in funding for the ATO, the increase in payments also includes $12.3 million in unpaid superannuation to be disbursed to employees, and $181.0 million in GST payments to the states and territories.
Source: Budget Paper No 2, p 29,30.
Household Energy Upgrades Fund – establishment
The Government will provide $1.3 billion in funding to establish the Household Energy
Upgrades Fund to support home upgrades that improve energy performance and save
energy. Funding includes:
- $1.0 billion in funding to the Clean Energy Finance Corporation to provide low-cost
finance and mortgages in partnership with private financial institutions for home
upgrades that save energy
- $300.0 million over 4 years from 2023–24 held in the Contingency Reserve to support
upgrades to social housing, in collaboration with states and territories, that save energy
- $36.7 million over 4 years from 2023–24 (and $2.1 million per year ongoing) to develop further initiatives to improve energy performance, including expanding and
modernising the Greenhouse and Energy Minimum Standards program and the
Nationwide House Energy Rating scheme.
The cost of this measure will be partially met from savings identified in the 2023–24 Budget measure titled Climate Change, Energy, the Environment and Water – reprioritisation.
This measure extends the 2022–23 October Budget measure titled Support for Energy Security and Reliability.
Source: Budget Paper No 2, p 70,71.
Hydrogen Headstart
The Government will provide $2.0 billion to accelerate development of Australia’s
hydrogen industry, catalyse clean energy industries, and help Australia connect to new
global hydrogen supply chains. Funding includes:
- $2.0 billion for the establishment of a new Hydrogen Headstart program, which will
provide revenue support for investment in renewable hydrogen production through
competitive production contracts, including funding for the Australian Renewable
Energy Agency and the Department of Climate Change, Energy, the Environment and
Water to support the development and operation of the program
- $5.6 million in 2023-24 to analyse the implications for Australia of intensifying global
competition for clean energy industry, and to identify actions before the end of 2023 to
further catalyse clean energy industries, ensure Australian manufacturing
competitiveness and attract capital investment
- $2.0 million over two years from 2024–25 to establish a fund to support First Nations
communities to engage with hydrogen project proponents and planning processes.
Funding for the Hydrogen Headstart program will be held in the Contingency Reserve.
Source: Budget Paper No 2, p 71.
Delivering the Referendum to Recognise Aboriginal and Torres Strait Peoples in the Constitution Through a Voice to Parliament
The Government will provide $364.6 million over 3 years from 2022–23 to deliver the
referendum to recognise Aboriginal and Torres Strait peoples in the Constitution through a Voice to Parliament.
Source: Budget Paper No 2, p 85.
Energy Price Relief Plan
The Government will provide $1.5 billion over 5 years from 2022–23 (and $2.7 million per year ongoing) to reduce the impact of rising energy prices on Australian households and businesses by providing targeted energy bill relief and progressing gas market reforms.
Funding includes:
- $1.5 billion over two years from 2023–24 to establish the Energy Bill Relief Fund to
support targeted energy bill relief to eligible households and small business customers,
which includes pensioners, Commonwealth Seniors Health Card holders, Family Tax
Benefit A and B recipients and small business customers of electricity retailers
- $14.7 million over 5 years from 2022–23 (and $2.7 million per year ongoing) to the
Australian Competition and Consumer Commission to administer and enforce
compliance with a temporary cap of $12 per gigajoule on the price of gas and to develop
and implement a mandatory gas code of conduct
- $9.5 million over 3 years from 2022–23 for the Australian Energy Regulator to monitor
coal and gas markets across the National Electricity Market.
The Government will also provide funding to support the New South Wales and
Queensland governments to implement a cap of $125 per tonne on the price of coal used for electricity generation. This funding is not for publication (nfp) due to commercial
sensitivities.
This measure builds on the 2022–23 October Budget measure titled Supporting the Supply of Australian Gas.
Source: Budget Paper No 2, p 86.
Additional Child Care Subsidy – improving access
The Government will provide $2.8 million over 4 years from 2023–24 to streamline the
delivery of the Additional Child Care Subsidy (ACCS) and expand the exceptional
circumstances criteria that can be applied to applications to backdate ACCS (child
wellbeing) by more than 28 days.
The changes will improve access to the ACCS (child wellbeing), which supports families
that need practical help to support their child’s safety and wellbeing.
The cost of this measure will be met from savings identified in the 2023–24 Budget
measures titled Child Care Subsidy Reform – additional integrity and Education – reprioritisation.
Source: Budget Paper No 2, p 98.
Australian Skills Guarantee – implementation
The Government will provide $8.6 million over 4 years from 2023–24 (and $1.5 million
per year ongoing) to implement the Australian Skills Guarantee, ensuring one in 10
workers on major Australian Government-funded projects is an apprentice, trainee or paid cadet.
The Australian Skills Guarantee will apply from 1 July 2024 to projects with contracts
valued at $10.0 million or more in the construction and information and communications
technology sectors and will include sub-targets for women. More ambitious targets will be set for flagship construction projects with contracts valued at $100.0 million or more.
For information and communications technology projects, initial targets for apprentices,
trainees, paid cadets, and the targets for women will be negotiated with suppliers on a
project-by-project basis, with targets based on workforce information provided during the tender process.
The cost of this measure will be partially met from savings identified in the 2023–24 Budget measure titled Employment and Workplace Relations – reprioritisation.
This measure builds on the 2022–23 October Budget measure titled Australian Skills
Guarantee.
Source: Budget Paper No 2, p 104, 105.
Boosting Employment Support
The Government will provide $26.3 million over 5 years from 2022–23 to boost employment services for young Australians in the care economy, continue pre-employment services for First Nations people who are incarcerated, trial a new regional employment service approach and support workers and communities through enhancements to the Local Jobs Program.
Source: Budget Paper No 2, p 105.
Extension of National Skills Agreement Negotiation Resourcing
The Government will provide $5.5 million in 2023–24 to continue supporting negotiations
on a long-term skills funding agreement with the states and territories. Subject to the
outcome of these negotiations, the Government has also retained $3.7 billion in the
Contingency Reserve for a 5-year National Skills Agreement that will commence on
1 January 2024.
The cost of this measure will be met from savings identified in the 2023–24 Budget measure titled Employment and Workplace Relations – reprioritisation.
Source: Budget Paper No 2, p 107.
Foundation Skills Programs – redesign and pilot extension
The Government will introduce a redesigned Commonwealth foundation skills program to
improve access to training for all Australians seeking to develop their language, literacy,
numeracy and digital skills from 1 July 2024. This measure delivers on the Government’s
commitment from the Jobs and Skills Summit to reinvigorate foundation skills programs to support workers and vulnerable Australians to gain secure employment.
The redesigned program will expand eligibility to those who are not registered job seekers, and will be delivered through a mix of national and local solutions to improve access and delivery. This will include a specific focus on First Nations people with place-based, whole of community projects designed to meet community language, literacy, numeracy, and digital needs, and delivered through First Nations organisations in partnership with TAFEs and other Registered Training Organisations, or Adult and Community Education sector providers.
The Government will also provide $3.5 million over two years from 2022–23 to extend the Foundation Skills for Your Future Remote Community Pilots by 12 months to 30 June 2024 to align with the commencement of the redesigned program.
The cost of this measure will be met from within the existing resourcing of the Foundation Skills for Your Future program and the Skills for Education and Employment program.
Source: Budget Paper No 2, p 107.
Safe and Fair Workplaces
The Government will provide $27.4 million over 4 years from 2023–24 (and $1.1 million
per year ongoing) to improve the safety and fairness of workplaces, and continue detailed consultation with key industries. Funding includes:
- $20.0 million over two years from 2023–24 to increase to the Productivity, Education
and Training Fund, to support engagement and practical activities of worker and
employer representatives with workplace reforms as they progress and the
implementation of the Government’s Workplace Relations agenda
- $4.4 million over 4 years from 2023–24 (and $1.1 million per year ongoing) to establish the National Construction Industry Forum including representatives from key employer groups, unions and government to provide advice on major challenges facing the building and construction industry including workplace relations, industry culture,
skills and training, safety, gender equality and productivity
- $2.0 million over two years from 2023–24 to develop a targeted training package on
workplace psychosocial hazards, to be provided to organisations that train health and
safety representatives in the Commonwealth jurisdiction
- $0.8 million in 2023–24 to conduct a review of modern awards in the context of new gender equality and job security objects and the updated modern awards and minimum wages objectives in the Fair Work Act 2009, the review will also consider opportunities to make awards simpler to use
- $0.3 million in 2023–24 for a specialist review into the operations of the Office of the Fair Work Ombudsman.
The Government is continuing its comprehensive consultation with stakeholders on the
implementation of election commitments and Jobs and Skills Summit outcomes to close
loopholes in the workplace relations system, including the Same Job, Same Pay principle,
the regulation of employee-like forms of work, and legislating a fair, objective definition of casual employment.
The Government will also engage with stakeholders to explore the design and
implementation of a national labour hire licensing scheme in Australia.
The cost of this measure will be met from savings identified in the 2023–24 Budget measure titled Employment and Workplace Relations – reprioritisation.
This measure builds on the 2022–23 October Budget measures titled Outcomes of the Jobs and Skills Summit and Secure Australian Jobs.
Source: Budget Paper No 2, p 108, 109.
Targeted Support for Apprenticeships
The Government will provide additional funding of $54.3 million over 5 years from
2022–23 to introduce a new non-financial support model for Australian Apprenticeships
from 1 July 2024. The model will redesign and refocus key support services currently
delivered by the Australian Apprenticeship Support Network to increase apprenticeship
completion rates and the diversity of the apprentice workforce.
Grant funding of $5.0 million over 3 years from 2024–25 will be provided to organisations with appropriate expertise in supporting women in the workplace, to further support women in historically male dominated trade apprenticeships. This will include providing education, advice or support to increase culturally safe and inclusive workplaces, reduce the cultural barriers to women’s participation, address workplace challenges and support businesses to attract and retain women. The new model will also provide support to women who commence their non-traditional trade apprenticeships prior to 1 July 2024 during their transition to new service arrangements.
This measure delivers on the Government’s commitment from the Jobs and Skills Summit to explore options to improve the apprenticeship support system and drive-up
completions. It will also assist employers linked to major and flagship construction projects to meet their targets for apprentices and women under the Australian Skills Guarantee.
The cost of this measure will be offset by savings achieved from streamlining Australian
Apprenticeships Incentive System service arrangements by transferring the processing of
wage subsidy claims from Services Australia to the Department of Employment and
Workplace Relations and providers.
Source: Budget Paper No 2, p 109, 110.
A Modern and Clinically Appropriate Medicare Benefits Schedule
The Government will provide $137.2 million over 5 years from 2022–23 to ensure better
targeted and more effective health care, and provide certainty that the Medicare Benefits
Schedule (MBS) remains clinically appropriate.
Source: Budget Paper No 2, p 123.
Aged Care Regulatory Reform
The Government will provide additional funding of $309.9 million over 5 years from
2022–23 to implement the recommendations from the Royal Commission into Aged Care
Quality and Safety and other initiatives to strengthen the regulation of the aged care sector and improve the health and safety of older Australians receiving aged care.
Source: Budget Paper No 2, p 125.
COVID-19 Response
The Government will provide additional funding over 5 years from 2022–23 to expand the COVID-19 vaccine strategy and provide Australians with COVID-19 treatments.
Source: Budget Paper No 2, p 125.
Funding Pay Increases for Aged Care Workers
The Government will provide $515.0 million over 5 years from 2022–23 (and $956.9 million over 10 years from 2022–23) to fund the outcome of the Fair Work Commission’s decision on the Aged Care Work Value Case. The decision was to increase award wages by 15 per cent from 30 June 2023 for many aged care workers including registered nurses, enrolled nurses, assistants in nursing, personal care workers, home care workers, recreational activity officers, and some head chefs and cooks.
Source: Budget Paper No 2, p 131.
Implementing Aged Care Reform – home care
The Government will provide additional funding of $338.7 million over 4 years from
2023–24 to improve the in-home aged care system.
Source: Budget Paper No 2, p 133.
Improving Aged Care Support
The Government will provide $827.2 million over 5 years from 2022–23 to continue to
improve the delivery of aged care services and respond to the Final Report of the Royal
Commission into Aged Care Quality and Safety.
Source: Budget Paper No 2, p 134.
Pharmaceutical Benefits Scheme (PBS) New and Amended Listings
The Government will provide $2.2 billion over 5 years from 2022–23 for new and amended listings on the Pharmaceutical Benefits Scheme (PBS), the Repatriation Pharmaceutical Benefits Scheme, the Life Saving Drugs Program, the National Epidermolysis Bullosa Dressing Scheme and the Stoma Appliance Scheme
Source: Budget Paper No 2, p 142.
Reducing Patient Costs and Improving Services through Community Pharmacies
The Government will provide $1.3 billion over 5 years from 2022–23 and deliver savings of $1.3 billion over 4 years from 1 July 2023 to reduce patient costs and improve access to medicines and related services delivered by community pharmacies.
Source: Budget Paper No 2, p 145.
Strengthening Medicare
The Government will provide $5.7 billion over 5 years from 2022–23 as an initial
investment to provide better access and more affordable care for patients in response to the Strengthening Medicare Taskforce Report. This investment will improve the quality and accessibility of multidisciplinary primary care, modernise Australia’s digital health
infrastructure, improve the financial sustainability of general practices, grow and upskill
Australia’s health workforce, and ease the pressure on hospitals.
Funding to support greater access to primary care services includes:
- $3.5 billion over 5 years from 2022–23 to address the decline in general practitioners’
bulk billing of patients on low incomes, and children. This funding will triple the bulk
billing incentive benefits for consultations for Commonwealth concession card holders
and patients aged under 16 years of age. These increased incentives would apply to:
– all face-to-face general practice consultations more than 6 minutes in length
– all telehealth general practice services which are between 6 and 20 minutes in length
(Level B consultations)
– longer telehealth general practice consultations where a patient is registered with
their GP through MyMedicare
Source: Budget Paper No 2, p 147.
Support for Children and New and Expecting Parents
The Government will provide $19.7 million over two years from 2023–24 to help parents
support their children’s health and early development.
Source: Budget Paper No 2, p 151.
Enhanced Support for Small and Medium-sized Businesses and Startups
The Government will provide $431.9 million over 4 years from 2023–24 (and $79.2 million per year ongoing) to improve support for small to medium enterprises (SMEs) and startups. Funding includes:
- $392.4 million over 4 years from 2023–24 (and $68.2 million per year ongoing) to
establish the Industry Growth Program to support Australian SMEs and startups to
commercialise their ideas and grow their operations. Support will be targeted towards
businesses operating in the priority areas of the National Reconstruction Fund
- $39.6 million over 4 years from 2023–24 (and $11.0 million per year ongoing) to continue the Single Business Service, supporting SMEs engagement with all levels of
government.
This measure repurposes and expands funding that was previously supporting SMEs
through the Entrepreneurs’ Programme, and is additionally offset by redirecting funding
from within the Industry, Science and Resources portfolio.
Source: Budget Paper No 2, p 163.
Ensuring Robust Policy, Financial, Legislative and Governance Oversight of the National Disability Insurance Scheme
The Government will provide $13.0 million in 2023–24 to the Department of Social Services to ensure it has resources to continue to provide policy advice and oversight of the National Disability Insurance Scheme and the National Disability Insurance Agency.
Source: Budget Paper No 2, p 195.
Improving the Effectiveness and Sustainability of the National Disability Insurance Scheme
As a first step towards ensuring a sustainable NDIS, the Government will provide
$732.9 million over 4 years from 2023–24 to support participant outcomes and the effective and sustainable operation of the Scheme.
Source: Budget Paper No 2, p 197.
Increase to Working Age Payments
The Government will provide $4.9 billion over 5 years from 2022–23 (with $1.3 billion
per year ongoing) to increase support for people receiving working age payments
including the JobSeeker Payment. This measure will:
- increase the base rate of working age and student payments by $40 per fortnight. This
increase applies to the JobSeeker Payment, Youth Allowance, Parenting Payment
(Partnered), Austudy, ABSTUDY, Disability Support Pension (Youth), and Special
Benefit. It will commence on 20 September 2023.
- extend eligibility for the existing higher single JobSeeker Payment rate for recipients
aged 60 years and over to recipients aged 55 years and over who are on the payment for 9 or more continuous months.
The increased support for recipients aged 55 years and over, the majority of whom are
women, acknowledges the additional challenges older Australians face in re-entering the
workforce, such as age discrimination or poor health.
The measure is expected to increase personal income tax receipts by $220.0 million over 3 years from 2024-25 (with $80.0 million per year ongoing).
Source: Budget Paper No 2, p 199.
Increased Support for Commonwealth Rent Assistance Recipients
The Government will provide $2.7 billion over 5 years from 2022–23 (and $0.7 billion
per year ongoing) to increase the maximum rates of the Commonwealth Rent Assistance
(CRA) allowances by 15 per cent to help address rental affordability challenges for CRA
recipients.
Source: Budget Paper No 2, p 200.
Jobs and Skills Summit – incentivise pensioners into the workforce – six months extension
The Government will provide $3.7 million in 2023–24 to extend the measure to provide age and veterans pensioners a once-off credit of $4,000 to their Work Bonus income bank and temporarily increase the maximum income bank until 31 December 2023.
Under this measure, pensioners can earn up to $11,800 before their pension is reduced,
supporting pensioners who want to work, or work more hours, to do so without losing
their pension. There is expected to be a minor increase in personal income tax receipts in 2024–25 as a result of this measure.
This measure builds on the 2022–23 October Budget measure titled Jobs and Skills Summit – incentivise pensioners into the workforce.
Source: Budget Paper No 2, p 201.
National Housing and Homelessness Agreement Transitional Funding
The Government will provide additional funding of $67.5 million in 2023-24 to boost
homelessness funding to states and territories. The funding will be used to support the
provision of homelessness services through the National Housing and Homelessness
Agreement in 2023-24. The current National Housing and Homelessness Agreement provides over $1.6 billion to states and territories, with Government committing to a one year extension for the National Housing and Homelessness Agreement to 30 June 2024 in the 2022-23 October Budget, while negotiations are underway with states and territories.
Commonwealth payments to the states and territories are managed by the Treasury.
Source: Budget Paper No 2, p 201.
Parenting Payment (Single) – improved support for single parents
The Government will provide $1.9 billion over 5 years from 2022-23 (and $0.5 billion
per year ongoing) to extend eligibility for Parenting Payment (Single) to support single
principal carers with a youngest child under 14 years of age. The existing eligibility
provides support to single principal carers with a child aged under 8 years of age.
Improved support for single parents will provide wellbeing benefits particularly for single
mothers, who are overwhelmingly the recipients of this payment, and their children. This
measure recognises that caring responsibilities can act as a barrier to employment while
also recognising that connections with the labour force are likely to improve economic
outcomes throughout a carer’s lifetime.
Source: Budget Paper No 2, p 202.
Driving Collaboration with Small Business to Reduce the Time Spent Complying with Tax Obligations
The Government will provide $21.8 million over 4 years from 2023–24 (and $1.4 million
per year ongoing) to the Australian Taxation Office (ATO) to lower the tax-related
administrative burden for small businesses. Funding includes:
- $12.8 million over 3 years from 2023–24 to trial an expansion of the ATO independent
review process to small businesses (with aggregated turnover between $10 million and
$50 million) subject to an ATO audit. The trial will commence on 1 July 2024 and run for
18 months
- $9.0 million over 4 years from 2023–24 (and $1.4 million per year ongoing) for 5 new tax clinics from 1 January 2025 to improve access to tax advice and assistance for 2.3 million small businesses. Eligibility for funding will be extended to TAFE institutions to
improve access to tax clinic services in regional areas.
The measure also delivers reforms to cut paperwork and reduce the time small businesses spend doing taxes:
- from 1 July 2024, small businesses will be permitted to authorise their tax agent to lodge multiple Single Touch Payroll forms on their behalf, reducing paperwork for small
Businesses
- from 1 July 2024, small businesses will benefit from faster, safer and cheaper income tax refunds by reducing the use of cheques
- from 1 July 2025, small businesses will be permitted up to 4 years to amend their income tax returns, reducing the burden of making revisions.
Source: Budget Paper No 2, p 210.
Increasing the Supply of Social and Affordable Housing and Making it Easier to Buy a Home
The Government will introduce a number of housing measures to increase support for
social and affordable housing across the country and improve access for home buyers.
Source: Budget Paper No 2, p 212.
