We have pleasure in enclosing a summary of the highlights from the Federal Government’s October 2022/23 Budget.
Australia’s Foreign Investment Framework – increase to fees and penalties
The Government has increased foreign investment fees and will increase financial penalties for breaches that relate to residential land. Fees doubled on 29 July 2022 for all applications made under the foreign investment framework. The maximum financial penalties that can be applied for breaches in relation to residential land will also double on 1 January 2023.
Fees ensure Australians do not bear the cost of administering the foreign investment framework, and penalties encourage compliance with these rules.
This measure is estimated to increase receipts by $457.4 million over the 4 years from 2022–23.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 10.
Depreciation – reverse the measure allowing taxpayers to self-assess the effective life of intangible depreciating assets
The Government will not proceed with the measure to allow taxpayers to self-assess the effective life of intangible depreciating assets, announced in the 2021–22 Budget.
Reversing this decision will maintain the status quo – effective lives of intangible depreciating assets will continue to be set by statute. This will avoid the potential integrity concerns with the previously announced measure and contribute to budget repair.
This measure is estimated to increase receipts by $550.0 million over the 4 years from 2022–23.
Source: Budget Paper No 2, p 10.
Digital Currency – clarifying that digital currencies are not taxed as foreign currency
The Government will introduce legislation to clarify that digital currencies (such as Bitcoin) continue to be excluded from the Australian income tax treatment of foreign currency. This maintains the current tax treatment of digital currencies, including the capital gains tax treatment where they are held as an investment. This measure removes uncertainty following the decision of the Government of El Salvador to adopt Bitcoin as legal tender and will be backdated to income years that include 1 July 2021.
The exclusion does not apply to digital currencies issued by, or under the authority of, a government agency, which continue to be taxed as foreign currency.
This measure is estimated to have no impact on receipts over the 4 years from 2022–23.
Source: Budget Paper No 2, p 11.
Extend ATO Compliance Programs – Personal Income Taxation Compliance Program
The Government will provide $80.3 million to the ATO to extend the Personal Income Taxation Compliance Program for 2 years 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, including overclaiming of deductions and incorrect reporting of income. The funding will enable the ATO to modernise its guidance products, engage earlier with taxpayers and tax agents and target its compliance activity.
This measure is estimated to increase receipts by $674.4 million and increase payments by $80.3 million over the 4 years from 2022–23.
Source: Budget Paper No 2, p 11.
Extend ATO Compliance Programs – Shadow Economy Program
The Government will extend the existing ATO Shadow Economy Program for a further 3 years from 1 July 2023.
The extension of the Shadow Economy Program will enable the ATO to continue a strong and co-ordinated response to target shadow economy activity, protect revenue and level the playing field for those businesses that are following the rules.
This measure is estimated to increase receipts by $2.1 billion and increase payments by $685.2 million over the 4 years from 2022–23. This includes an increase in GST payments to the States and Territories of $442.3 million.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 12.
Extend ATO Compliance Programs – Tax Avoidance Taskforce
The Government has boosted funding for the ATO Tax Avoidance Taskforce by around $200 million per year over 4 years from 1 July 2022, in addition to extending this Taskforce for a further year from 1 July 2025.
The boosting and extension of the Tax Avoidance Taskforce will support the ATO to pursue new priority areas of observed business tax risks, complementing the ongoing focus on multinational enterprises and large public and private businesses.
This measure is estimated to increase receipts by $2.8 billion and increase payments by $1.1 billion over the 4 years from 2022–23.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 12.
Improving the integrity of off-market share buy-backs
The Government will improve the integrity of the tax system by aligning the tax treatment of off-market share buy-backs undertaken by listed public companies with the treatment of on-market share buy-backs. This measure will apply from announcement on Budget night (7:30pm AEDT, 25 October 2022).
This measure is estimated to increase receipts by $550.0 million over the 4 years from 2022–23.
Source: Budget Paper No 2, p 13.
Making COVID-19 business grants non-assessable non-exempt
In response to COVID-19, payments from certain state and territory business grants, made prior to 30 June 2022, can be made non-assessable, non-exempt (NANE) for income tax purposes, subject to eligibility. This tax treatment is only provided in exceptional circumstances, such as the severe economic consequences facing businesses during the COVID-19 pandemic.
The Government has made the following state and territory COVID-19 grant programs eligible for NANE treatment, which will exempt eligible businesses from paying tax on these grants: Victoria Business Costs Assistance Program Four – Construction, Victoria Licenced Hospitality Venue Fund 2021 – July Extension, Victoria License, Hospitality Venue Fund 2021 – Top Up Payments, Victoria Business Costs Assistance Program Round Two – Top Up, Victoria Business Costs Assistance Program Round Three, Victoria Business Costs Assistance Program Round Four, Victoria Business Costs Assistance Program Round Five, Victoria Impacted Public Events Support Program Round Two, Victoria Live Performance Support Program (Presenters) Round Two, Victoria Live Performance Support Program (Suppliers) Round Two, Victoria Commercial Landlord Hardship Fund 3, Australian Capital Territory HOMEFRONT 3, and Australian Capital Territory Small Business Hardship Scheme.
This measure is estimated to result in an unquantifiable decrease in receipts over the 4 years from 2022–23.
Source: Budget Paper No 2, p 14.
More Competition, Better Prices – increase penalties
The Government will increase penalties for breaches of competition and consumer law to deter conduct that stifles competition and increases costs to consumers. Maximum penalties for corporations will increase from $10 million to $50 million per breach, and from 10 per cent of annual turnover to 30 per cent of turnover (whichever is greater) during the period the breach took place.
This measure is estimated to increase receipts by $62.6 million over the 4 years from 2022–23.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 15.
Multinational Tax Integrity Package – amending Australia’s interest limitation (thin capitalisation) rules
The Government will strengthen Australia’s thin capitalisation rules to address risks to the corporate tax base arising from the use of excessive debt deductions. This measure will apply to income years commencing on or after 1 July 2023.
The current thin capitalisation regime limits debt deductions up to the maximum of three different tests: a safe harbour (debt to asset ratio) test; an arm’s length debt test; and a worldwide gearing (debt to equity ratio) test. The Government will replace the safe harbour and worldwide gearing tests with earnings-based tests to limit debt deductions in line with an entity’s activities (profits).
This measure includes changes to:
• limit an entity’s debt-related deductions to 30 per cent of profits (using EBITDA —earnings before interest, taxes, depreciation, and amortisation – as the measure of profit). This new earnings-based test will replace the safe harbour test
• allow deductions denied under the entity-level EBITDA test (interest expense amounts exceeding the 30 per cent EBITDA ratio) to be carried forward and claimed in a subsequent income year (up to 15 years)
• allow an entity in a group to claim debt-related deductions up to the level of the worldwide group’s net interest expense as a share of earnings (which may exceed the 30 per cent EBITDA ratio). This new earnings-based group ratio will replace the worldwide gearing ratio
• retain an arm’s length debt test as a substitute test which will apply only to an entity’s external (third party) debt, disallowing deductions for related party debt under this test.
The changes will apply to multinational entities operating in Australia and any inward or outward investor, in line with the existing thin capitalisation regime. Financial entities will continue to be subject to the existing thin capitalisation rules.
This measure is estimated to increase receipts by $720.0 million and increase payments by $5.4 million over the 4 years from 2022–23.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 15-16.
Multinational Tax Integrity Package – denying deductions for payments relating to intangibles held in low- or no-tax jurisdictions
The Government will introduce an anti-avoidance rule to prevent significant global entities (entities with global revenue of at least $1 billion) from claiming tax deductions for payments made directly or indirectly to related parties in relation to intangibles held in low- or no-tax jurisdictions. For the purposes of this measure, a low- or no-tax jurisdiction is a jurisdiction with:
• a tax rate of less than 15 per cent or
• a tax preferential patent box regime without sufficient economic substance.
The measure will apply to payments made on or after 1 July 2023.
This measure is estimated to increase receipts by $250.0 million and increase payments by $6.7 million over the 4 years from 2022–23.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 16.
Multinational Tax Integrity Package – improved tax transparency
The Government will introduce reporting requirements for relevant companies to enhance the tax information they disclose to the public, for income years commencing from 1 July 2023.
The Government will require:
• large multinationals, defined as significant global entities, to prepare for public release of certain tax information on a country by country (CbC) basis and a statement on their approach to taxation, for disclosure by the ATO
• Australian public companies (listed and unlisted) to disclose information on the number of subsidiaries and their country of tax domicile and
• tenderers for Australian Government contracts worth more than $200,000 to disclose their country of tax domicile (by supplying their ultimate head entity’s country of tax residence).
This measure is estimated to have an unquantifiable impact on receipts and to increase payments by $5.1 million over the 4 years from 2022–23.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 17.
Powering Australia – Electric Car Discount
The Government will cut taxes on electric cars so that more Australians can afford them.
From 1 July 2022, the measure will exempt battery, hydrogen fuel cell and plug-in hybrid electric cars from fringe benefits tax and import tariffs if they have a first retail price below the luxury car tax threshold for fuel-efficient cars. The car must not have been held or used before 1 July 2022.
Employers will need to include exempt electric car fringe benefits in an employee’s reportable fringe benefits amount.
This measure is estimated to decrease receipts by $410.0 million and decrease payments by $65.0 million over the 4 years from 2022–23. The measure will be reviewed after 3 years.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 18.
Providing certainty on unlegislated tax and superannuation measures announced by the previous Government
The Government has reviewed and will not proceed with the following legacy tax and superannuation measures that were announced but not legislated by the previous Government:
• The 2013-14 MYEFO measure that proposed to amend the debt/equity tax rules.
• The 2016–17 Budget measure that proposed changes to the taxation of financial arrangements (TOFA) rules (a delayed start date was announced in 2018–19 Budget).
• The 2016–17 Budget measure that proposed changes to the taxation of asset-backed financing arrangements.
• The 2016–17 Budget measure that proposed introducing a new tax and regulatory framework for limited partnership collective investment vehicles.
• The 2018–19 Budget measure that proposed changing the annual audit requirement for certain self-managed superannuation funds (SMSFs).
• The 2018–19 Budget measure that proposed introducing a limit of $10,000 for cash payments made to businesses for goods and services (a delayed start date was announced in 2018–19 MYEFO).
• The 2018–19 Budget measure that proposed introducing a requirement for retirement income product providers to report standardised metrics in product disclosure statements.
• The 2021–22 MYEFO measure that proposed establishing a deductible gift recipient category for providers of pastoral care and analogous well-being services in schools.
Further, the Government will defer the start dates of the following legacy tax and superannuation measures to allow sufficient time for policies to be legislated and implemented:
• The 2019–20 MYEFO measure that proposed introducing a sharing economy reporting regime, from:
– 1 July 2022 to 1 July 2023 for transactions relating to the supply of ride sourcing and short-term accommodation, and
– 1 July 2023 to 1 July 2024 for all other reportable transactions (including but not limited to asset sharing, food delivery and tasking-based services).
• The 2021–22 Budget measure that proposed relaxing residency requirements for SMSFs, from 1 July 2022 to the income year commencing on or after the date of Royal Assent of the enabling legislation.
• The 2021–22 Budget measure that proposed making technical amendments to the TOFA rules, from 1 July 2022 to the income year commencing on or after the date of Royal Assent of the enabling legislation.
This measure is estimated to increase receipts by $29.4 million, and decrease GST payments to the States and Territories by $4.1 million over the 4 years from 2022–23.
Source: Budget Paper No 2, p 18-19.
Superannuation – expanding eligibility for downsizer contributions
The Government will allow more people to make downsizer contributions to their superannuation, by reducing the minimum eligibility age from 60 to 55 years of age. The measure will have effect from the start of the first quarter after Royal Assent of the enabling legislation.
The downsizer contribution allows people to make a one-off post-tax contribution to their superannuation of up to $300,000 per person from the proceeds of selling their home. Both members of a couple can contribute and contributions do not count towards non-concessional contribution caps.
This measure provides greater flexibility to contribute to superannuation and aims to encourage older Australians to downsize sooner to a home that better suits their needs, thereby increasing the availability of suitable housing for Australian families.
This measure is estimated to decrease receipts by $20.0 million over the 4 years from 2022–23.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 20.
Tax Practitioners Board – compliance program to enhance tax system integrity
The Government will provide $30.4 million to the Tax Practitioners Board (TPB) to increase compliance investigations into high-risk tax practitioners and unregistered preparers over 4 years from 1 July 2023.
The TPB will use new risk engines to better identify tax practitioners who engage in poor and unlawful tax advice, to improve tax compliance and raise industry standards.
This measure is estimated to increase receipts by $81.9 million, and increase payments by $30.8 million, over the 4 years from 2022–23. This includes an increase in GST payments to the States and Territories of $10.0 million.
Source: Budget Paper No 2, p 20.
Energy Efficiency Grants for Small and Medium Sized Enterprises
The Government will provide $62.6 million over 3 years from 2022–23 to support small to medium enterprises to fund energy efficient equipment upgrades. The funding will support studies, planning, equipment and facility upgrade projects that will improve energy efficiency, reduce emissions or improve the management of power demand.
Costs of this measure will be partially met within the existing resourcing of the Department of Climate Change, Energy, the Environment and Water.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 60.
Outcomes of the Jobs and Skills Summit
The Government will provide $76.4 million over 4 years from 2022–23 for outcomes from the Jobs and Skills Summit to help build a bigger, better trained and more productive workforce, boost real wages and living standards, and create more opportunities for more Australians.
Funding includes:
• $42.2 million over two years from 2022–23 for the Department of Home Affairs to increase visa processing capacity and raise awareness of opportunities for high-skilled migrants in Australia’s permanent Migration Program
• $11.5 million over 4 years from 2022–23 to the Australian Public Service Commission to establish an APS Digital Traineeship Program to support early to mid-career transitions into digital roles
• $8.9 million over 3 years from 2023–24 to establish a Productivity, Education and Training Fund to support employer and union representatives to improve safety, fairness and productivity in workplaces
• $7.9 million over 4 years from 2022–23 for the Fair Work Commission to support the uptake of enterprise bargaining for small businesses
• $4.0 million over 4 years from 2022–23 to the Australian Bureau of Statistics to increase the frequency and detail of data measuring the barriers and incentives to participating in the labour market
• $2.0 million over 3 years from 2022–23 to develop a Carer Friendly Workplace Framework to assist employers to develop and adopt practices to support employees with caring responsibilities to enter and remain in the workforce, with the cost of this component met from within the existing resourcing of the Department of Social Services.
The Government will also:
• establish a South Australian Defence Industry Workforce and Skills Taskforce, within the existing resources of the Department of Defence, to support the growth of a skilled defence industry workforce in South Australia
• extend the relaxation of work restrictions for student visa holders and secondary training visa holders until 30 June 2023.
In addition, the Government provided $4.7 million over two years from 2022–23 for the Treasury to deliver the Jobs and Skills Summit in September 2022 and to develop the Employment White Paper in 2023.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 82-83.
Plan for Cheaper Child Care
The Government will provide $4.7 billion over 4 years from 2022–23 (and $1.7 billion per year ongoing) to deliver cheaper child care, easing the cost of living for families and reducing barriers to greater workforce participation. This includes $4.6 billion over 4 years from 2022–23 to:
• increase the maximum Child Care Subsidy (CCS) rate from 85 per cent to 90 per cent for families for the first child in care and increase the CCS rate for all families earning less than $530,000 in household income
• maintain current higher CCS rates for families with multiple children aged 5 or under in child care, with higher CCS rates to cease 26 weeks after the older child’s last session of care, or when the child turns 6 years old
• task the Australian Competition and Consumer Commission to undertake a 12 month inquiry into the cost of child care and the Productivity Commission to conduct a comprehensive review of the child care sector
• improve the transparency of the child care sector by requiring large providers to publicly report CCS-related revenue and profits.
The Government will also provide $43.9 million over 4 years from 2022–23 for measures that support the National Agreement on Closing the Gap targets and improve early childhood outcomes for First Nations children.
Funding includes:
• $33.7 million over 4 years from 2022–23 to introduce a base entitlement to 36 hours per fortnight of subsidised early childhood education and care for families with First Nations children, regardless of activity hours or income level
• $10.2 million over 3 years from 2022–23 to establish the Early Childhood Care and Development Policy Partnership with Coalition of Peaks partners and First Nations representatives to develop policies on First Nations early childhood education and care.
The Government will also provide $9.5 million over two years from 2022–23 to communicate the changes to the CCS system to families and child care providers.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 93-94.
Plan for Cheaper Medicines
The Government will provide $787.1 million over 4 years from 2022–23 (and $233.4 million per year ongoing) to decrease the general patient co-payment for treatments on the Pharmaceutical Benefits Scheme from $42.50 to $30.00 on 1 January 2023.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 135.
Disaster Support
The Government will provide $51.5 million in 2022–23 to support communities impacted by natural disasters, including:
• $24.6 million for Queensland communities impacted by flooding in May 2022
• $22.6 million for ongoing recovery for communities from the 2019–20 Black Summer bushfires in Victoria
• $2.8 million towards rebuilding of the Norco Ice Cream Factory in the Northern Rivers region of New South Wales
• $1.5 million for the National Emergency Management Agency to support work on optimal responses and resilience to natural disasters.
The support outlined in this measure is in addition to previous assistance provided by the Commonwealth Government in response to flooding in Queensland in March and May 2022, and in New South Wales from February, March and July 2022 through Australian Government Disaster Recovery Payments (AGDRP), Disaster Recovery Allowance (DRA) and other payments made under the Disaster Recovery Funding Arrangements. It is also additional to the assistance announced for Victoria, New South Wales and Tasmania in October 2022.
The Government is expecting to provide $1.4 billion to individuals impacted by disaster events through the AGDRP and DRA.
The 2022–23 October Budget includes a provision of $3.0 billion over the forward estimates to account for potential future expenditure on floods or other disaster response payments, including for demand driven payments under the DRFA, and delayed AGDRP and DRA claims.
Partial funding for this measure has already been provided for by the Government.
Source: Budget Paper No 2, p 148.
National Reconstruction Fund – establishment
The Government will invest $15.0 billion over 7 years from 2023–24 to establish the National Reconstruction Fund (NRF) to support, diversify and transform Australian industry and the economy through targeted co-investments in 7 priority areas: resources; agriculture, forestry and fisheries sectors; transport; medical science; renewables and low emission technologies; defence capability; and enabling capabilities.
Funding includes:
• $15.0 billion in targeted co-investments through independently assessed projects
• $50.0 million over two years from 2022–23 to the Department of Industry, Science and Resources, and the Department of Finance to establish the NRF.
The NRF is expected to generate revenue from investments, which will be quantified as part of the policy and legislation design of the NRF, following public consultation.
This measure will redirect $5.2 million from the 2022–23 March Budget measure titled Boosting the Modern Manufacturing Strategy and Addressing Critical Supply Chain Vulnerabilities.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 153.
Improving the NBN
The Government will provide an equity investment of $2.4 billion to NBN Co over 4 years from 2022–23 to upgrade the National Broadband Network (NBN) to deliver fibre-ready access to a further 1.5 million premises by late 2025.
The additional investment will support nearly 90 per cent of Australia’s fixed line footprint to have access to world class gigabit speeds by late 2025.
The Government will also provide $4.7 million over 3 years from 2022–23 to support the delivery of free broadband for up to 30,000 unconnected families with school aged students during the 2023 calendar year.
This measure includes the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 162.
Boosting Parental Leave to Enhance Economic Security, Support and Flexibility for Australia’s Families
The Government will enhance economic security, improve gender equality, and enhance and provide more flexibility for shared care arrangements at a cost to the budget of $531.6 million over 4 years from 2022–23 (and $619.3 million per year ongoing).
The Government will introduce reforms from 1 July 2023 to make the Paid Parental Leave Scheme flexible for families so that either parent is able to claim the payment and both birth parents and non-birth parents are allowed to receive the payment if they meet the eligibility criteria. Parents will also be able to claim weeks of the payment concurrently so they can take leave at the same time.
From 1 July 2024, the Government will start expanding the scheme by two additional weeks a year until it reaches a full 26 weeks from 1 July 2026.
Both parents will be able to share the leave entitlement, with a proportion maintained on a “use it or lose it” basis, to encourage and facilitate both parents to access the scheme and to share the caring responsibilities more equally. Sole parents will be able to access the full 26 weeks.
The Women’s Economic Equality Taskforce will assist in the finalisation of the changes to the scheme to ensure that the final model supports women’s economic participation and gender equality, including the period of concurrence and the most appropriate proportion of “use it or lose it” weeks.
This measure extends the 2022–23 March Budget measure titled Women’s Economic Security Package.
Source: Budget Paper No 2, p 177.
Incentivising Pensioners to Downsize
The Government will provide $73.2 million over 4 years from 2022–23 (and $0.4 million per year ongoing), including:
• extending the assets test exemption for principal home sale proceeds from 12 months to 24 months for income support recipients
• changing the income test, to apply only the lower deeming rate (0.25 per cent) to principal home sale proceeds when calculating deemed income for 24 months after the sale of the principal home.
This measure will reduce the financial impact on pensioners looking to downsize their homes in an effort to minimise the burden on older Australians and free up housing stock for younger families.
The cost of this measure will be partially met from within the existing resourcing of the Department of Social Services, Services Australia and the Department of Veterans’ Affairs.
Personal income tax receipts are also expected to increase by $7.0 million over 3 years from 2023–24 as a result of this measure.
This measure delivers on the Government’s election commitments as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 180.
Jobs and Skills Summit – incentivise pensioners into the workforce
The Government will provide $61.9 million over two years from 2022–23 to provide age and veterans pensioners a once off credit of $4,000 to their Work Bonus income bank.
The temporary income bank top up will increase the amount pensioners can earn in 2022–23 from $7,800 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.
Personal income tax receipts are also expected to increase by $15.0 million in 2023–24 as a result of this measure.
This measure implements an outcome from the Jobs and Skills Summit.
Source: Budget Paper No 2, p 181.
Lifting the Income Threshold for the Commonwealth Seniors Health Card
The Government will provide $69.6 million over 4 years from 2022–23 to increase the income threshold for the Commonwealth Seniors Health Card from $61,284 to $90,000 for singles and from $98,054 to $144,000 (combined) for couples.
The Government will also freeze social security deeming rates at their current levels for a further two years until 30 June 2024, to support older Australians who rely on income from deemed financial investments, as well as the pension, to deal with the rising cost of living.
The cost of this measure will be partially met from within the existing resourcing of the Department of Veterans’ Affairs.
This measure delivers on the Government’s election commitments as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 181.
National Housing and Homelessness Plan
The Government will provide $13.4 million over 4 years from 2022–23 (and $4.2 million per year ongoing) to develop a 10 year National Housing and Homelessness Plan in 2023. The plan will be developed in association with states and territories, industry bodies and not for profit organisations, to support the development of short, medium and long term housing and homelessness policy.
The Government will also provide a one year extension for the National Housing and Homelessness Agreement to 30 June 2024, to allow for the development of the new arrangement, in consultation with the National Housing Supply and Affordability Council and states and territories. Funding for the extension of the National Housing and Homelessness Agreement has already been provided for by the Government.
The cost of this measure will be partially met from within the existing resourcing of the Department of Social Services.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
See also the related payment measure titled Safer and More Affordable Housing in the Treasury Portfolio.
Source: Budget Paper No 2, p 183.
Fighting Online Scams
The Government will provide $12.6 million over 4 years from 2022–23 to combat scams and online fraud to protect Australians from financial harm.
Funding includes:
• $9.9 million over 4 years from 2022–23 to the Australian Competition and Consumer Commission for initial work on the establishment of a National Anti-Scam Centre
• $2.0 million in 2022–23 to the Department of Home Affairs to expand its arrangement with IDCARE to provide specialist identity support services, including counselling and identity recovery services for victims of identity theft
• $0.7 million in 2022–23 to the Treasury to raise public awareness of the risk of scams.
The cost of this measure will be partially met from within the existing resourcing of the Australian Competition and Consumer Commission.
This measure delivers on the Government’s election commitment as published in the Plan for a Better Future.
Source: Budget Paper No 2, p 188.
Housing Accord
The Australian Government will provide $350.0 million over 5 years from 2024–25 to support funding of an additional 10,000 affordable homes under a Housing Accord with state and territory governments and other key stakeholders.
The Commonwealth support will include availability payments over the longer term to facilitate institutional investment, including by superannuation funds, in affordable homes.
This measure complements the Government’s investment in the Housing Australia Future Fund, which will provide a further 30,000 social and affordable homes over 5 years.
See also the related payments measures titled Safer and More Affordable Housing in the Treasury Portfolio and National Housing and Homelessness Plan in the Social Services Portfolio.
Source: Budget Paper No 2, p 189.
Modernising Business Registers – program funding, director ID sustainment and registry stabilisation
The Government will provide additional funding of $166.2 million over 4 years from 2022–23 to continue delivery of the Modernising Business Registers program that will consolidate over 30 business registers onto a modernised registry platform.
Funding includes:
• $80.0 million in 2022–23 for the Australian Taxation Office (ATO) and the Australian Securities and Investments Commission (ASIC) to continue design and delivery of the modernised registry platform
• $86.2 million over 4 years from 2022–23 ($119.5 million over 6 years from 2022–23 and $15.9 million per year ongoing) for ATO and ASIC to operate and regulate the Director Identification Numbers regime, and maintain ASIC’s registry systems.
Source: Budget Paper No 2, p 190.
Safer and More Affordable Housing
The Government will invest $10 billion in the newly created Housing Australia Future Fund, to be managed by the Future Fund Management Agency, to generate returns to fund the delivery of 30,000 social and affordable homes over 5 years and allocate $330 million for acute housing needs.
In the first 5 years these investment returns will fund:
• $200 million for the repair, maintenance and improvements of housing in remote Indigenous communities, where some of the worst housing standards in the world are endured by our First Nations people
• $100 million for crisis and transitional housing options for women and children fleeing domestic and family violence and older women on low incomes who are at risk of homelessness
• $30 million to build more housing and fund specialist services for veterans who are experiencing homelessness or are at-risk of homelessness.
The Government remains committed to ensuring that of the $10 billion fund, the returns from $1.6 billion will be directed to long-term housing for women and children fleeing domestic and family violence, and older women on low incomes who are at risk of homelessness.
In addition, the Government will provide $348.6 million over 4 years from 2022–23 for a number of further initiatives to deliver more social and affordable housing. Funding includes:
• $324.6 million over 4 years from 2022–23 to establish the Help to Buy scheme to assist people on low to moderate incomes to purchase a new or existing home with an equity contribution from the Government
• $15.2 million over 4 years from 2022–23 (and $4.4 million per year ongoing) to establish a National Housing Supply and Affordability Council to support the Australian Government to develop housing supply and affordability policy through research and advice
• $0.5 million over 4 years from 2022–23 (and $0.1 million per year ongoing) to establish Housing Australia, by renaming and expanding the remit of the National Housing Finance and Investment Corporation, to deliver the Australian Government’s social and affordable housing programs
• $8.3 million over 4 years from 2022–23 to the Treasury and Housing Australia to administer the Housing Australia Future Fund.
The Government will also:
• establish the Regional First Home Buyers Guarantee to support eligible citizens and permanent residents who have lived in a regional location for more than 12 months to purchase their first home in that location with a minimum 5 per cent deposit, with 10,000 places per year to 30 June 2026, by redirecting funding from the Regional Home Guarantee component of the 2022–23 March Budget measure titled Affordable Housing and Home Ownership, with no financial impact
• broaden the remit of the National Housing Infrastructure Facility to directly support new social and affordable housing in addition to financing critical housing infrastructure, with no financial impact, as announced at the Jobs and Skills Summit.
This measure implements the Government’s election commitments as published in the Plan for a Better Future.
See also the related payments measures titled Housing Accord in the Treasury Portfolio and National Housing and Homelessness Plan in the Social Services Portfolio.
Source: Budget Paper No 2, p 191-192.
Supporting Small Business Owners
The Government will provide $15.1 million over two calendar years from 1 January 2023 until 31 December 2024 to extend the Small Business Debt Helpline and the NewAccess for Small Business Owners programs to support the financial and mental wellbeing of small business owners.
This measure will redirect partial funding from the Australian Small Business and Family Enterprise Ombudsman component of the 2022–23 March Budget measure titled Small Business Support Package, and savings identified as part of the Spending Audit.
Source: Budget Paper No 2, p 193.
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