Home Office What you need to know about the Federal Budget

What you need to know about the Federal Budget

  • May 15, 2024
  • by Property Australia
Treasurer Jim Chalmers

Treasurer Jim Chalmers delivered his third Budget last night, delivering the government’s second consecutive surplus of $9.3 billion. 

“This is a Budget for the here‑and‑now and it’s a Budget for the decades to come,” Mr Chalmers said. 

“It’s a responsible Budget that helps people under pressure today – and invests in the promise and potential of the more prosperous future we can make together.”

Here ‘s what you need to know from last night’s Budget. 

Key points:  
  • Surplus of $9.3 billion due to higher commodity prices and a strong jobs market 
  • Government says the Budget’s priority was to address cost of living pressures 
  • Net overseas migration to total almost 1.5 million over five years  
  • $11.3 billion housing package includes $1 billion in new incentives for state governments to fund last mile infrastructure 
  • An historic focus and recognition of the importance of purpose-built student accommodation requiring universities to limit their international student intake unless they build more purpose-built student accommodation 

 Economy 

  • Surplus: A budget surplus of $9.3 billion (0.3 per cent of GDP) is now forecast in 2024-25 due to higher wages growth, the forecast moderation in inflation, continuing employment growth and a recovery in household consumption.  
  • Underlying cash balance: An underlying cash deficit of $28.3 billion (1.0 per cent of GDP) is forecast for 2024–25, $9.5 billion lower since MYEFO. The underlying cash deficit is expected to increase in 2025–26 before declining to $24.3 billion (0.8 per cent of GDP) in 2027–28. 
  • GDP growth: Real GDP grew by 3.1 per cent in 2022–23 rather than the 3.5 per cent growth forecast at the March 2022–23 Budget. Real GDP is forecast to fall to 1.75 per cent in 2023-24, increasing to 2.0 per cent in 2024-25 and 2.25 per cent in 2025-26.  
  • Tax share of GDP: Tax as a share of GDP over the medium term is broadly unchanged from the last budget. The higher level of nominal GDP increases projected tax receipts. 
  • Unemployment: The labour market has been resilient with the unemployment rate remaining near its 50-year low at 3.8 per cent, with the participation rate near its record high at 66.6 per cent. The unemployment rate is projected to rise to 4.0 per cent in 2023–24 and 4.5 per cent in 2024–25. 
  • Wage growth: Nominal wage growth has declined to 3.25 per cent in 2024–25. Moderating inflation and a pick-up in wage growth resulted in a return to positive annual real wage growth at the end of 2023. Real wages are expected to rise by 0.5 per cent through the year to the June quarter 2024.  
  • Inflation: Inflation is expected to be 3.5 per cent through the year to the June quarter 2024, 0.25 per cent lower than previously forecast. This moderation in inflation has been assisted by a continued easing of goods inflation. The peak in services inflation lagged that of goods inflation. Services inflation remains elevated, driven by the increased cost of business inputs. However, services inflation is expected to gradually normalise over the next two years. 
Net overseas migration and population 

Population 

  • Government actions are estimated to reduce net overseas migration by 110,000 people over the forward estimates from 1 July 2024. Net overseas migration is forecast to approximately halve from 528,000 in 2022–23 to 260,000 in 2024–25. 
  • Population growth is now expected to be 2.0 per cent in 2023–24 and 1.4 per cent in 2024–25. 

Migration System Reform  

  • $18.3 million over four years from 2024–25 to further reform Australia’s migration system to drive greater economic prosperity and restore its integrity. Funding includes: 
  • $15 million over three years from 2024–25 for information and education activities to provide migrant workers with accurate and appropriate information about workplace safeguards, protections and compliance measures related to migration laws  
  • $1.9 million in 2024–25 to conduct a data-matching pilot between the Department of Home Affairs and the Australian Taxation Office of income and employment data to mitigate exploitation of migrant workers and abuse of Australia’s labour market and migration system. 

Visas  

  • The government will implement a new National Innovation visa, replacing the current Global Talent visa (subclass 858) from late 2024, to target exceptionally talented migrants who will drive growth in sectors of national importance. The Business Innovation and Investment visa program (BIIP) will cease, with refunds of the visa application charge provided from September 2024 for those who wish to withdraw their BIIP application. The measure includes $1.4 million in 2024–25 for necessary system changes for the implementation of a new visa and closure of the BIIP.  
  • The government will also reduce the work experience requirement for the Temporary Skill Shortage (subclass 482) visa from two years to one year for all applicants from 23 November 2024 onward. 
  • The government will implement a new Mobility Arrangement for Talented Early-professionals Scheme (MATES) program for Indian nationals from 1 November 2024. MATES will provide a new mobility pathway for 3,000 Indian graduates and early career professionals (aged 18 to 30 years at the time of application), with knowledge and skills in targeted fields of study to live and work in Australia for up to two years. 

Student Visa Changes  

There were no details regarding how many of the forecast 260,000 migrants will be made up of student visa holders. 

Housing  

Last Mile Infrastructure – Housing Support Program 

The government will provide state, territory and local governments with payments to fund the enabling infrastructure (water and sewage connections, roads and footpaths) needed to develop new homes through the $1.5 billion Housing Support Program. This represents an additional $1 billion in 2023-24 boost in this Budget. 

  • $500 million (over two years from 2023-24) for Housing Support Program to offer state and local governments to deliver infrastructure required to enable new homes to be built (for example, connecting sewerage and water and roads).  
  • $1.9 billion for additional concessional financing of up to $1.9 billion for community housing providers and other charities to support the delivery of new homes under the HAFF and Accord. 

National Housing Accord 

  • $3 billion (payable after 2028-29) for the New Homes Bonus – a performance-based payment for states and territories that exceed their share of the original 1 million well located homes target agreed under the National Housing Accord. 
  • affordable homes commitment: Original allocation of $350 million, updated to an initial $72 million a year by 2028–29, indexed from 2029–30 to support 10,000 affordable homes over five years from 2024 

Build-to-rent 

There were no new funding commitments in relation to build-to-rent. The Budget notes implementation of previously announced measures including: 

  • $34.3 million over five years from 2022–23 to implement the previously announced tax incentives to encourage more build-to-rent developments. This includes halving the managed investment trust withholding tax rate from 30 per cent to 15 per cent and increasing the capital works tax deduction (depreciation) rate from 2.5 to 4 per cent a year for newly constructed build-to-rent properties. 
  • Lower foreign investment application fees for new build-to-rent developments. The government will also allow foreign investors to purchase established build-to-rent developments and apply lower fees to these applications, conditional on the property continuing to be operated as a build-to-rent development. 

Social and affordable housing 

  • An additional $1.9 billion is being provided in concessional loans to community housing providers and other charities to support delivery of new social and affordable homes under the Housing Australia Future Fund and National Housing Accord 
  • There will also be support for more community housing providers to access finance through the Affordable Housing Bond Aggregator by increasing the cap on the government’s guarantee of Housing Australia’s liabilities by $2.5 billion to $10.0 billion, with an associated increase in the line of credit that supports the Affordable Housing Bond Aggregator of $3.0 billion to $4.0 billion. 
  • $2 million (over three years from 2024-25) to build the capacity of Community Housing Providers and Aboriginal and Torres Strait Islander Community Controlled Housing Organisations to enable them to better engage with available support and improve their delivery of new housing. 
  • $1 million (over two years from 2024-25) to develop a sustainable Community controlled housing model. 

National Housing Infrastructure Facility 

$1 billion from 2023–24 for crisis and transitional accommodation for women and children fleeing domestic violence, and youth under the National Housing Infrastructure Facility. This includes increasing the proportion of grants for this investment from $175 million to $700 million to be able to support crisis and transitional housing. 

National Agreement on Housing and Homelessness  

This Budget includes funding for a new five-year $9.3 billion National Agreement on Social Housing and Homelessness with states and territories:  

  • $423.1 million (over five years from 2024-25) additional funding from the Australian Government to extend the Agreement and provide funding for states and territories to combat homelessness, provide crisis support and build and repair social housing. The additional funding will increase annual funding under the new agreement to $1.8 billion per year from 2024–25, with over $9.28 billion provided to states and territories over the life of the agreement. 
  • $1 billion in 2023–24 for states and territories to support enabling infrastructure for new housing through a new Housing Support Program – Priority Works Stream.  
  • This includes a doubling of the Australian Government’s dedicated homelessness funding to $400 million a year. 

Housing Research  

  • $20.8 million (over five years from 2024-25) additional support for the Australian Housing and Urban Research Institute and for the Treasury to continue its work supporting development of evidence-based housing policy. 
Training and Skills  

Vocational Education and Training System  

The government will provide $26.1 million over four years from 2024–25 for the Skills and Training portfolio to contribute to a strong and effective Vocational Education and Training system, continue structural reforms, and maximise returns on previous skills and training investments and commitments. Funding includes:  

  • $10.6 million over four years from 2024–25 (and $1.0 million per year ongoing) for the implementation of a reporting solution for the Australian Skills Guarantee. 
  • $9.5 million in 2024–25 in additional funding for Jobs and Skills Australia’s continued provision of advice on Australia’s labour market, skills and training needs.  
  • $6.1 million in 2024–25 in additional funding for the National Careers Institute to continue its role in supporting Australians to access targeted careers information. 
  • $2.9 million in 2024–25 in reprofiled funding for continued implementation work with the states and territories on the 5-year National Skills Agreement that commenced on 1 January 2024. 

Skills and Apprenticeships  
 

  • $88.8 million to grow the pipeline of construction workers through 20,000 additional fee-free TAFE and pre-apprenticeship places. This includes:  
  • $62.4 million, working with states and territories, to deliver an additional 15,000 Fee-Free TAFE and VET places over two years from 1 January 2025. 
  • $26.4 million, working with states and territories, to deliver approximately 5,000 places in pre-apprenticeship programs over two years from 1 January 2025. 
  • $1.8 million to deliver streamlined skills assessments for around 1,900 migrants from comparable counties to work in Australia’s housing construction industry. 

Work Health and Safety  

  • $7 million (over three years from 2023–24) targeted assistance to residential builders seeking to obtain accreditation under the Work Health and Safety Accreditation Scheme. 
  • $6.2 million (over two years from 2024–25) support for building industry peak employer associations to assist residential builders in obtaining accreditation under the Work Health and Safety Accreditation Scheme. 

Women’s Skills  

  • $55.6 million over four years from 2024–25 to establish the Building Women’s Careers program to drive structural and systemic change in work and training environments. The program will fund partnerships between training providers, community organisations, employers, and unions to improve women’s access to flexible, safe and inclusive work and training opportunities in traditionally male-dominated industries of national priority, including clean energy sectors. 
Climate and environment  

Emissions Reductions and Energy 

Net Zero Economy 

The government will provide $399.1 million over five years from 2023–24 (and an additional $616.8 million from 2028–29 to 2034–35 and $93.4 million per year ongoing) in additional resourcing for the Net Zero Economy Authority (the Authority), the Department of Employment and Workplace Relations, and the Fair Work Commission to promote orderly and positive economic transformation associated with decarbonisation to Australia, its regions and workers realise the benefits of the net zero economy. Funding includes: 

  • $209.3 million over four years from 2024–25 (and $53.3 million per year ongoing) to expand the Authority to coordinate policy and deliver across government, broker investments that create jobs in regions, and support workers affected by the net zero transition 
  • $134.2 million over four years from 2024–25 and $377.8 million over the medium term (and $40.1 million per year ongoing from 2035–36) to provide workforce transition support for impacted workers and the broader communities affected by the net zero transition  
  • $44.4 million over four years from 2024–25 to deliver the Energy Industry Jobs Plan, to assist employees impacted by the closure of relevant coal-and gas-fired power stations to access new employment by supporting job and skills matching and providing onboarding and early retirement incentives to employers.  
  • $10 million over two years from 2023–24 to deliver public information on the net zero transition and ensure affected workers and communities are aware of the support available. 
  • $1.3 million over four years from 2024–25 for Treasury to develop and publish high-quality guidance on best practices for Australian businesses when developing net zero transition plans. 

National Consumer Energy Resources Roadmap 

  • This Budget commits $27.7 million to help Australians benefit from cheaper, cleaner energy sooner by supporting development of priority reforms to ensure consumer energy resources, such as rooftop solar, household batteries and electric vehicles, contribute to our grid. It also introduces the New Vehicle Efficiency Standard, which will save Australians around $95 billion at the bowser by 2050 while reducing transport emissions. 
  • $27.7 million over four years from 2024–25 (and $0.7 million per year ongoing) to implement priority consumer energy resources reforms that help consumers save on bills by boosting the supply of renewable electricity to the grid from rooftop solar, home batteries and other consumer energy resource. 

Carbon Markets 

  • $48.0 million over four years from 2024–25 to implement reforms to the Australian Carbon Credit Unit scheme as part of the government’s response to the Independent Review of Australian Carbon Credit Units. 

Environment, nature and heritage 

Nature Positive Plan 

The government will provide a further $40.9 million over two years from 2024–25 to continue implementing the Nature Positive Plan: better for the environment, better for business (Nature Positive Plan).  

Building on the investment made in the 2023–24 Budget measure titled Nature Positive Plan – better for the environment, better for business, which provided $121.0 million over four years from 2023–24 to establish Environment Protection Australia and $51.5 million over four years from 2023–24 ($4.5 million per year ongoing) to set up Environment Information Australia, the additional funding in this measure includes:  

  • $17.6 million over two years from 2024–25 for the Department of Climate Change, Energy, the Environment and Water to establish and commence operation of the Nature Repair Market. 
  • $14.0 million over two years from 2024–25 for the Clean Energy Regulator to administer the Nature Repair Market once open for participation. 
  • $5.3 million in 2024–25 additional funding to progress legislative reforms.  
  • $4.1 million over two years from 2024–25 to drive voluntary uptake of the Nature Repair Market and nature related-reporting by businesses. 

Environmental Law Reform 

  • $7 million for more support for staff to assess project proposals from business, and more tailored support to help business more effectively comply with environment law.  
  • $65.1 million for extra research into threatened species so sensitive areas can be more easily avoided and suitable projects can be more quickly approved based on robust, existing publicly available data.  
  • $24.5 million for better planning – working with state and territory governments – in seven priority regions so it’s clearer to business where complying development can more easily occur and where the ‘no go’ areas are. 

National Heritage 

  • $17.7 million to reduce the backlog and support administration of complex applications under the Aboriginal and Torres Strait Islander Heritage Protection Act and progress the reform of Australia’s cultural heritage laws.  

Circular economy  

  • $23.0 million in 2024–25 to deliver the circular economy policy, program and legislative functions. The government will consider further funding for circular economy following the development of a new national circular economy framework. 

Sustainable Finance 

The government will provide $17.3 million over four years from 2024–25 (and $3.1 million per year ongoing) to promote the development of sustainable finance markets in Australia. Funding includes:  

  • $10 million over four years from 2024–25 (and $1.9 million per year ongoing) for additional resourcing for the Australian Securities and Investments Commission (ASIC) to investigate and take enforcement action against market participants engaging in greenwashing and other sustainability-related financial misconduct. 
  • $5.3 million over four years from 2024–25 (and $1.2 million per year ongoing) for the Treasury, ASIC and the Australian Prudential Regulation Authority (APRA) to deliver the sustainable finance framework, including issuing green bonds, improving data and engaging in the development of international regulatory regimes related to sustainable finance.  
  • $1.6 million over two years from 2024–25 for ASIC and the Treasury to consult on the design of a labelling regime to regulate the use of sustainability labels on retail investment products. 
  • $0.5 million in 2024–25 to continue the development of Australia’s sustainable finance taxonomy, including expanding the taxonomy to cover the agricultural sector. 
Corporate tax and international investment 

Thin Capitalisation 

The Budget refers to amendments to the 2022–23 October Budget measure Multinational Tax Integrity Package – amending Australia’s interest limitation (thin capitalisation) rules to exempt Australian plantation forestry entities from the new earnings-based rules, allowing these entities to continue to apply the former asset-based thin capitalisation rules. 

Global Minimum Tax – Pillar Two  

The government will discontinue the denial of deductions for payments relating to intangibles held in low- or no-tax jurisdictions as integrity issues are now addressed through the Global Minimum Tax and Domestic Minimum Tax being implemented by the government. The government will also introduce a new provision from 1 July 2026 that applies a penalty to taxpayers who are part of a group with more than $1 billion in global turnover annually that are found to have mischaracterised or undervalued royalty payments, to which royalty withholding tax would otherwise apply. 

Foreign investment Capital Gains Tax 

The government has announced its intention to strengthen the foreign resident capital gains tax (CGT) regime to ensure foreign residents pay their fair share of tax in Australia and to provide greater certainty about the operation of the rules. Budget forecasts for the measure over the forward estimates include revenue of $200 million per year starting from 2025/26. The amendments will apply to CGT events commencing on or after 1 July 2025 to: 

  • clarify and broaden the types of assets that foreign residents are subject to CGT on.  
  • amend the point-in-time principal asset test to a 365-day testing period.  
  • require foreign residents disposing of shares and other membership interests exceeding $20 million in value to notify the ATO, prior to the transaction being executed.  

This measure aims to tax foreign residents on both direct and indirect sales of assets with a close economic connection to Australian land, in line with the tax treatment that applies to Australian residents. 

Foreign investment Review Board 

  • $15.7 million over four years from 2024–25 (and $4.1 million per year ongoing from 2028–29) for Treasury to strengthen and streamline Australia’s foreign investment framework, through more effective monitoring, enforcement of conditions and timely review of foreign investment applications. This includes refunding 75 per cent of fees for foreign investment applications that do not proceed because the applicant was unsuccessful in a competitive bid process. 

Corporate governance and regulation 

Merger reform 

The government will provide $13.9 million over five years from 2023–24 (and $0.3 million per year ongoing) to progress competition reforms, including:  

  • replacing Australia’s current merger control with a faster, stronger, simpler, targeted, more transparent and streamlined mergers control system that better addresses anti-competitive mergers, including establishing a comprehensive database of mergers and acquisitions in Australia  
  • expanding the scope of the Competition Review, announced in August 2023, to include advice on non-compete clauses, and to work with states and territories to revitalise National Competition Policy  
  • developing a Regulatory Initiatives Grid for the financial sector to provide greater transparency of announced regulatory reforms and planned regulator initiatives and activities to promote better collaboration and engagement with industry and reduce regulatory burden. 

Anti-money laundering and counter terrorism financing regime 

The government will provide $168.0 million over four years from 2024–25 to implement reforms to strengthen Australia’s Anti-Money Laundering and Counter-Terrorism Financing Act 2006, to enhance Australia’s ability to detect and disrupt illicit financing. Funding includes:  

  • $160.8 million over two years from 2024–25 for the Australian Transaction Reports and Analysis Centre to expand its regulatory, intelligence and data capabilities and provide guidance to newly regulated entities  
  • $7.0 million over four years from 2024–25 for the Attorney-General’s Department to support the implementation of the legislative reforms through the provision of policy and legal advice and stakeholder consultation, and to deliver a program of anti-money laundering and counter-terrorism financing capacity building in the Pacific. 

Funding from 2025–26 for this measure will be held in the Contingency Reserve until the legislative reforms have passed the Parliament.  

The cost of this measure will be partially met from the Confiscated Assets Account under the Proceeds of Crime Act 2002 

This measure builds on the 2023–24 Budget measure titled Strengthening Australia’s Anti-Money Laundering Framework. 

Treasury portfolio – additional measures 

  • $41.7 million over four years from 2024–25 (and $9.6 million per year ongoing) to the Treasury, the Australian Securities and Investments Commission (ASIC) and the Attorney-General’s Department to regulate and support new beneficial ownership transparency requirements for Australian companies and other entities 
Retirement living  

This is a budget that focuses on the housing needs of some Australians but forgets about a large cohort of older people and challenges associated with age-friendly accommodation and care. 

Inclusion of retirement living units in Housing Accord target 

Disappointingly, the government still has not recognised units in retirement communities in its 1.2 million new homes target. 

With the government’s own National Housing Supply and Affordability Council forecasting a 300,000-home shortfall against its target, the 67,000 retirement dwellings required to maintain existing market demand would close that gap by 22 per cent. 

Shared Care and Home Care 

There is no budget response to the RLC’s Shared Care framework.  

This is a disappointing outcome given the Shared Care model generates 16-18 per cent systemwide efficiencies and $100 million in annual fiscal efficiencies for consumers and government.  

However, the government is providing $531.4 million to fund an additional 24,100 Home Care Packages in FY25 to reduce average wait times for older Australians seeking support to continue to live at home.  

In November 2023 the government announced a delay in the transition of Commonwealth Home Support Packages into the newly created Support at Home program. The Budget gives some indication why this decision was made, with $174.5 million over two years to fund the ICT infrastructure needed to implement this system. 

Commonwealth Rent Assistance 

The government has announced a $1.9 billion to increase the maximum rates of Commonwealth Rent Assistance by a further 10 per cent on top of the 15 per cent increase delivered in the previous Budget. 

However, while thousands of Australians will welcome this announcement, the additional funding does not address the inequity amongst retirement living residents in accessing this assistance. 

Removing incoming purchase price benchmarks for retirement community residents with lease or increasing the current threshold eligibility in line with escalating house prices to allow access to CRA would relieve financial stress for retirement community residents and provide a more equitable playing field. 

Aged Care 

Aged care is the government’s fourth largest payment program, totalling $157 billion over the next four years. 

Through the Budget, the government has committed the delay of the implementation of the Aged Care Act until July 2025. 

Concerningly, the government has not made any responses to the Aged Care Taskforce recommendations, despite their findings being presented to them in November last year. This is important as the taskforce makes recommendations about how aged care will be funded and implemented in the future.   

Student accommodation 

International student numbers will be tied to availability of purpose-built student accommodation 

  • As previously announced, the government will require universities to establish new, purpose-built student accommodation should they wish to increase their international student enrolments above their initial allocation. 
  • They have stated in the Budget this is to increase the level of housing supply and help to ensure that increases in international student numbers do not put pressure on the domestic housing market.  
  • They have allocated $2.1 million from 2024–25 (and an additional $3.7 million from 2028–29 to 2034–35) for the Department of Education to develop and implement the regulations to deliver these reforms.  
  • The caps on international students and the regulations will be set in consultation with the sector. The Budget makes it clear that accommodation would be available to both domestic and international students 

University Accord reforms 

  • The government will provide $1.1 billion over five years from 2023–24 (and an additional $2.7 billion from 2028–29 to 2034–35) for the first stage of reforms to Australia’s tertiary education system in response to the Australian Universities Accord Final Report.  

This includes: 

  • $2.6 million in 2024–25 to implement changes to the Department of Education’s Provider Registration and International Student Management System to improve integrity in the international education sector. 
  • $19.4 million over two years from 2024–25 to establish a National Student Ombudsman from 1 February 2025. 
Infrastructure and cities  

Urban Agenda and Community Programs 

$12.6 million over four years from 2024–25 to support the delivery of the government’s Urban Agenda, supporting a national approach to sustainable urban development, oversight of urban renewal projects and the continued delivery of city and regional deal projects. 

City Deals  

All existing City and Regional Deals except the South East Queensland City Deal expire over the forward estimates. Active City Deals include:  Adelaide, Albury-Wodonga, Barkly Region, Geelong, Hunter Region, Hinkler Region, Launceston, Perth, Townsville and Western Sydney.  

Infrastructure Investment Program 

$4.1 billion over seven years from 2024–25 for 65 new priority infrastructure projects across Australia under the Infrastructure Investment Program. These are denoted (New) below. 

$10.1 billion over 11 years from 2023–24 for existing projects in the Infrastructure Investment Program. These are denoted (Existing) below. 

National Active Transport Fund 

$100 million over four years from 2025–26 to a new national Active Transport Fund to upgrade and deliver new bicycle and walking paths. Program guidelines will be developed with states and territories and will be made public before it commences.  

Infrastructure spending across state and territories 

New South Wales 

  • $1.9 billion for projects in Western Sydney, including $500.0 million for the Mamre Road Stage 2 Upgrade and $400.0 million for Elizabeth Drive – Priority Sections Upgrade (New) 
  • $115.0 million for Zero Emission Buses Tranche 1 Infrastructure – Macquarie Park Depot (New) 
  • $578.6 million for projects in New South Wales, including $112.0 million for the M1 Pacific Motorway Extension to Raymond Terrace (Existing) 

Victoria 

  • $17.6 million for projects in Victoria, including $12.0 million for the Bridgewater Road and Portland Ring Road intersection upgrade (New) 
  • $3.3 billion for North East Link in Victoria (Existing) 

Queensland 

  • $134.5 million for the Mt Crosby Road Interchange Upgrade and $42.5 million for Bremer River Bridge (Westbound) Strengthening on the Warrego Highway in Queensland (New) 
  • $1.2 billion for the Direct Sunshine Coast Rail Line (Existing) 
  • $431.7 million for the Coomera Connector Stage 1 (Coomera to Nerang) (Existing) 

South Australia 

  • $120.0 million for the Mount Barker and Verdun Interchange Upgrades (New) 
  • $133.6 million for projects in South Australia, including $100.0 million for the South Eastern Freeway Upgrade (Existing) 

Western Australia 

  • $300.0 million for the METRONET High-Capacity Signalling Program – Automatic Train Control – Stage 1 (New) 
  • $54.0 million for the Regional Road Safety Program (New) 
  • $53.6 million for the Great Northern Highway – Brooking Channel Bridge Replacement (New) 
  • $1.4 billion for METRONET projects (Existing) 

Tasmania 

  • $80.0 million for the Lyell Highway – Granton to New Norfolk (New) 
  • $113.1 million for projects in Tasmania, including $50.0 million for the Mornington Roundabout Upgrade (Existing) 

Northern Territory 

  • $72.0 million for the Port Keats Road – Wadeye to Palumpa (Nganmarriyanga) (New) 
  • $64.0 million for the Berrimah Road Duplication – Stuart Highway to Tiger Brennan Drive (New) 
  • $35.9 million for projects in the Northern Territory, including $25.0 million for the Carpentaria Highway Upgrade (Existing) 

Australian Capital Territory  

  • $50.0 million to plan for Stage 2B of the Canberra Light Rail (New) 
  • $27.1 million for the William Hovell Drive Duplication (Existing) 

Support for small and medium businesses 

Extension of Small Business Instant Asset Write-off 

Extension of the $20,000 instant asset write-off by 12 months until 30 June 2025 is expected to cost $290 million over five years from 2023-24: 

  • Small businesses with aggregated annual turnover of less than $10 million will be able to immediately deduct eligible depreciating assets costing less than $20,000, which are first used or installed ready for use between 1 July 2024 and 30 June 2025. 
  • 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. 
Future Made in Australia 

A centrepiece of this year’s budget are incentives targeting domestic production and commercialisation of technology across a range of priority industries including renewable energy, critical minerals and green hydrogen. 

Attracting Investment in Key Industries 

The government will provide $68.0 million over four years from 2024–25 (and $3.1 million per year ongoing) to attract investment in key industries to support a Future Made in Australia. Funding includes:  

  • $54.7 million over two years from 2024–25 to administer, coordinate and promote the government’s Future Made in Australia agenda, including the development of legislation that establishes a National Interest Framework and consultation with industry, investors and major stakeholders on the development of a ‘single front door’ that improves the attraction and facilitation of major investment proposals.  

Making Australia a Renewable Energy Superpower 

The government will provide an estimated $19.7 billion over ten years from 2024–25 to accelerate investment in Future Made in Australia priority industries, including renewable hydrogen, green metals, low carbon liquid fuels, refining and processing of critical minerals and manufacturing of clean energy technologies including in solar and battery supply chains.  

Critical Minerals 

  • An estimated $7.1 billion over 11 years from 2023–24 (and an average of $1.5 billion per year from 2034–35 to 2040–41) to support refining and processing of critical minerals, including:  
  • A Critical Minerals Production Tax Incentive from 2027–28 to 2040–41 to support downstream refining and processing of Australia’s 31 critical minerals to improve supply chain resilience, at an estimated cost to the budget of $7.0 billion over 11 years from 2023–24 (and an average of $1.5 billion per year from 2034–35 to 2040–41)  

Renewable Hydrogen 

  • An estimated $8.0 billion over ten years from 2024–25 (and an average of $1.2 billion per year from 2034–35 to 2040–41) to support the production of renewable hydrogen, including:  
  • A Hydrogen Production Tax Incentive from 2027–28 to 2040–41 to producers of renewable hydrogen to support the growth of a competitive hydrogen industry and Australia’s decarbonisation, at an estimated cost to the budget of $6.7 billion over ten years from 2024–25 (and an average of $1.1 billion per year from 2034–35 to 2040–41)  
  • $1.5 billion over seven years from 2027–28 (and an average of $125.0 million per year from 2034–35 to 2036–37) to the Australian Renewable Energy Agency to supercharge ARENA’s core investments in renewable energy and related technologies, including for the development, demonstration, commercialisation, manufacture and deployment of renewable energy technologies that will help make Australia a renewable energy superpower. 

Batteries and Solar Supply-Chains 

  • $1.7 billion over ten years from 2024–25 for the Future Made in Australia Innovation Fund, to be administered by the Australian Renewable Energy Agency, to support innovation, commercialisation, pilot and demonstration projects and early stage development in priority sectors, including: 
  • $549.0 million over eight years from 2023–24 to support battery manufacturing, including:  
  • $523.2 million over seven years from 2024–25 to establish the Battery Breakthrough Initiative, administered by the Australian Renewable Energy Agency, to promote the development of battery manufacturing capabilities through production incentives targeted at the highest value opportunities in the supply chain  
  • $20.3 million over five years from 2023–24 for the Powering Australia Industry Growth Centre and the Future Battery Industries Cooperative Research Centre to enhance industry and research collaboration, including workforce training for battery research, manufacturing, transport and recycling  
  • $5.6 million in 2024–25 to support delivery of the Australian Made Battery Manufacturing Precinct to drive battery manufacturing in Australia 
  • $2.0 million over two years from 2024–25 for a techno-economic feasibility study to explore solar value chain opportunities that could be generated from developing a green polysilicon industry in Australia, including through export and cooperative international opportunities.