Australian Budget 2024 unpacked

Australian Budget 2024 Unpacked from aged care to child care and everything in between. The budget represents a comprehensive overview of initiatives impacting Australians, focusing particularly on Australian women.

Key highlights include provisions for paid parental superannuation, crisis payments, and accommodation funding, addressing critical social needs. Additionally, measures such as fast-tracking passport applications, migration caps, and investments in renewables reflect a commitment to shaping a more sustainable future for the nation and growing the Green Energy sector. Noteworthy mentions go to tradies retaining the ability to claim a deduction up to $20,000 when purchasing an asset, e.g. their utility vehicles.

Significant federal funds have also been put aside for the upcoming Brisbane 2032 Olympics and future Rugby World Cups, underlining the government's emphasis on sports and national events.

Universities face new regulations with international student numbers capped unless they can provide adequate accommodations and support for international and local students. Crucial fields such as teaching, nursing, and social work will receive support to reduce out-of-pocket expenses experienced when on practical placements.

There will be a noticeable decline in immigration rates, and the government will introduce a visa ballot for Chinese, Indian, and Vietnamese migrants. With the focus on skilled migrants.

High-income earners with a salary of $146,000+ will have their promised tax cut reduced. Consequently, many ponder whether this policy shift will curb or contribute to economic inflation.

Let’s look more closely at each sector.

Aged Care

Aged care funding of $610 million for 24,100 more home care packages. States will get funds to release older patients sooner. $190 million for a Transition Care Programme extension. The National Cabinet approved these measures in December. Health workers express disappointment over pay rise delays until 2026.

Child Care

Reforms to improve the Childcare Subsidy program will save $410.7m in four years. $30m will be reinvested for a wage increase in early childhood education. Other measures include $84.2m for audits and managing fees. Overall, sector funding remains mostly unchanged.

Defence

The federal government plans to boost defence spending by $5.7 billion over the next four years, with an additional $50.3 billion over the following decade to reshape Australia's armed forces, totalling $330 billion. This aims to expand the navy, ready the army for shoreline combat, improve long-range strike abilities, and fortify northern bases.

Electricity Bills

Australian households to receive a $300 electricity rebate, while businesses get a 17 % bill reduction. The Treasury expects inflation to decrease next year. The rebate is part of cost-of-living relief in the budget.

Live Export Trade

The government vowed to end live sheep exports from Australia, allocating $107 million in the budget to support the industry's closure by May 1, 2028. Animal welfare groups support the ban, while farmers argue for the trade's legitimacy.

Green Manufacturing

A funding boost for critical minerals and clean energy tech, with incentives for hydrogen and manufacturing. Geoscience Australia will map new mineral sites. The Future Made in Australia agenda emphasizes net-zero emissions and supply chain resilience, directing investments through a new legislative framework.

Gun Saftey

National firearms register to be set up after 30 years since Port Arthur massacre. It will give real-time data on guns and owners, connecting with police and gov't intel. Cost: $161.3M over 4 years.

Rental Assistance

Commonwealth Rent Assistance rate increased by 10% in September, 1M recipients will benefit. The single-person rate rose from $188.20 to about $207.20. The share house rate will increase to $125.47. The government will spend $1.9B over 5 years and $500M annually after that.

Housing

The government allocates $1 billion to housing infrastructure for domestic violence victims and youth. Another $1 billion supports states with roads and utilities for new homes. Funding for homelessness services doubles, but Greens argue it's diverted from social housing and rebranded from a previous commitment.

Healthcare

The federal government invests $8.5B in health, adding 29 clinics to 58 for walk-in care covered by Medicare. Medicare levy income thresholds are raised for inflation. Family income thresholds increase by $4,027 per dependent child.

Migration

The government sets a cap at 185,000 for next year's permanent migration program, with 132,200 for the skill stream. Net overseas migration to halve to 260,000 in 2024-2025. International students place limited specifics in talks with universities. $25 ballot for China, Vietnam, and India working holiday visas to reduce processing times. On a separate and new program for 3,000 Indian grads and professionals to live in Australia, entry via a $25 ballot. Successful applicants pay $365 for a visa.

International Students

International student cap legislation allows the government to limit enrollments. Education providers must build new purpose-built student accommodation to benefit both international and domestic students. The details of the student cap will be determined through consultation with the sector.

Medication

PBS-listed med prices frozen for Medicare card holders for 1 year, concession card holders & pensioners for 5 years at $31.60 or $7.70 per med. $310m cost over 5 years, $166.4m in 2028-29.

Mental Health

The Australian government has introduced a free national digital mental health service, funding $588.5 million over 8 years. The expansion includes 61 Medicare mental health centres with varied professional support. Criticism cites inadequate response to escalating mental health crisis, calling for improved funding and support measures. An additional $71.7 million was allocated to primary health networks for mental health nurse services.

Family Violence Support

The government allocates $925.2M to continue the Leaving Violence Program permanently, aiding abuse survivors financially and for safety planning. The scheme offers people leaving abusive relationships up to $5,000 in financial support as well as referring them to social services and safety planning.

Teaching, Nursing and Social Working Students

Students in teaching, nursing, midwifery, and social work placements will receive $319.50 weekly starting next July, filling a financial gap. The means-tested Commonwealth Prac Payment supplements existing income support for over 73,000 students.

High-Income Earners

The ABC marks high-income earners as budget losers due to reduced tax cuts. Changes in the government's tax plans mean incomes above $146,000 get smaller cuts. Top earners to pay $4,529 less instead of the expected $9,075 decrease. Overall, a cut in benefits compared to the last budget.

NDIS Top-Ups

Automatic top-up of NDIS plans will end to control growth and expenses. Government aims to reduce growth in payments by $14.4 billion over 4 years by stopping plan top-ups and combating fraud. Treasury projects 9.2% yearly growth in participant payments. Additional $468.7 million allocated for disability support, including an Evidence Advisory Committee. States to contribute to reduce annual growth to 8% and fund supports outside NDIS.

Last Minute Travellers

Australian passports are among the most expensive globally. From July 1, a new fee for expedited processing will be introduced: an extra $100 for a 5-business-day turnaround. This is expected to generate $27.4 million in five years.

Public Service Contractors

The government cuts spending on external labour, saving $1 billion.

Parental Leave

Superannuation will be added to Commonwealth-funded parental leave starting July next year, costing $1.1 billion over four years and $623.1 million yearly. The aim is to address pay inequity, especially for women with smaller retirement savings. Commonwealth parental leave will be expanded to 26 weeks by mid-2026.

Student Debt

Student loan interest accrual is changing to a lower index rate, which was backdated to June last year. Repayments stay the same, and debt grows slower, saving borrowers money. However, the federal government will lose $3B in revenue.

Social Services

Around 4,700 job seekers and aged recipients will receive higher payments. Starting in September, they'll receive $54.90 more every two weeks. Deeming rates remain frozen. Raising rates would reduce payments for over half of 876,000 support recipients. 31,000 carers can work, study, or volunteer more flexibly next year. $1.8 billion is allocated to Services Australia for managing claims.

Social Media and Online Safety

The government will trial an age verification scheme online to restrict children's access to inappropriate content. Overseas attempts faced challenges in implementing effective programs. Sceptics worry about adult sites holding personal data being targeted by hackers. $6.5 million was allocated for the pilot program amid gendered violence incidents.

Endometriosis

Starting July next year, Medicare will cover longer specialist consultations for women with endometriosis and other gynaecological conditions. Two new rebates will allow extended consultation times. This $49.1 million investment aims to offer 430,000 more services. The government's total commitment to endometriosis support is $107 million.

Renewables

Over the next decade, $3.2 billion will be spent under the government's flagship Future Made in Australia initiative to accelerate investment in renewable hydrogen solar and battery supply chains. $8B for hydrogen production, $100M on faster approvals, $7.1B for Snowy Hydro.

Sport

The government will allocate funds to upgrade the Australian Institute of Sport for the 2032 Brisbane Olympics. The funding will go towards a new high-performance training and testing centre, a multi-sport indoor dome and accommodation.

Tax exemption will also be provided for the 2027 and 2029 Rugby World Cups.

Tradies

Tax break for tradies on utes extended. Small businesses can deduct up to $20,000 on new equipment. Calls to raise threshold to $30,000 or $150,000. Government to invest $90 million for education in construction and housing. New Energy Apprentice Payment offers up to $10,000 for clean energy skills.

Ukraine

The government is to give Ukraine $100M: $50M for air defence, $30M for drones, and $15M for gear like helmets, boats, boots, masks, and generators. Total aid surpasses $1B since Russia's invasion.

Universities

The government is capping international student spots and forcing universities to allocate 40% of the Student Services and Amenities Fee to student-led groups starting next year. More funding is expected from 2026 for increased university places by 2050 to support disadvantaged students' completion with new funding arrangements pending government-tertiary sector agreement.

Women

As touched on in the previous points on parental leave and Family violence support, the government announced a $1 billion commitment for women in violent relationships, providing $5,000 payments permanently, and $1 billion was allocated for crisis housing. Superannuation on paid parental leave to bridge the savings gap between genders cost $1.1 billion over four years, and the government's total commitment to endometriosis and support is $107 million.

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