An extra 16,500 humanitarian places over the next four years for refugees fleeing Afghanistan and some temporary measures to address the rising cost of living are the key take outs for the humanitarian sector from the 2022 federal budget.

Australia’s normal humanitarian intake will remain frozen at 13,750 places a year, but the extra Afghanistan commitment will effectively see that annual figure increase to 17,875 until 2025-26.

It is the largest one-off increase to Australia’s refugee program since Prime Minister Tony Abbott made an additional 12,000 places available to Syrian and Iraqi refugees in 2015, following the conflict in the region.

But it will still not bring the annual humanitarian uptake to the same level it was before the pandemic, in 2018-19, when the government had a target of 18,750 places.

Immigration Minister, Alex Hawke, said $666 million commitment over four years was “in recognition of our sustained commitment following Australia’s two decades of operations in Afghanistan”.

There has been a stream of refugees from Afghanistan since August last year when the capital Kabul fell to the Taliban, with more than 6,000 evacuated when the militant group seized control.

The budget also contains a $250 one off payment for vulnerable people, including pensioners, carers, veterans, job seekers and concession card holders. Fuel excise will be cut by 22 cents a litre for six months, meaning a saving of $350 for average families.

There is a commitment of $525 million over four years to reduce safety net thresholds for the Pharmaceutical Benefits Scheme (PBS), meaning cheaper medicine.

A tax cut worth up to $420 will go to ten million workers by raising the low- and middle-income tax offset from $1080 to $1500, but it will end next year and see tax refunds fall.

Migration will remain capped at 160,000 places for next year under the budget despite calls from industry groups to increase numbers to help combat a skilled labour shortage. Two thirds of the places will be for skilled migrants at the expense of family reunion and partner visas.

The Australian Industry Group had called for 190,000 places. But employment restrictions on international students will be relaxed to allow them to work more than 40 hours a fortnight. 

AMES Australia CEO Cath Scarth said the extra humanitarian visas for Afghans fleeing the Taliban were extremely welcome.

“This is a significant, one-off increase to Australia’s humanitarian program. Afghanistan has not only seen twenty years of conflict and instability, it is now suffering a humanitarian crisis following the collapse of the economy,” Ms Scarth said.

“There are many Afghans now in Australia wanting to bring loved ones to safety. The extra visas will mean families can be reunited. And being with your family is a critical part of the settlement journey as families are able to support each other.

“We at AMES also welcome the measure to ease the cost of living. We know that migrants and refugees are among the most vulnerable in our community to the effect of rising prices; and we know that many migrants and refugees often have to travel long distances to get to work,” Ms Scarth said.  

Other highlights

Employment

The budget documents say unemployment is set to drop below 4 per cent for the first time in 50 years – but this does not factor in underemployment, which is estimated to be as high as 15 per cent. The budget contains an extra $102 million to support jobseekers find work and a $15,000 wage subsidy for employers who take on apprentices.

Skills and Training

The budget contains $2.8 billion to increase take-up and completion rates in apprenticeships and $3.7 billion for 800,000 training places for businesses to hire skilled staff.

Disability

There is no extra money for disability services or the NDIS except for $6.1 million to support jobseekers with a disability. The government has committed $35 billion to the NDIS next year even though it has promised to fully fund the NDIS after projections it will need and extra 40 billion over four years.

Free access to Rapid Antigen Tests and N95 masks for all NDIS clients has not been included in the budget.

Small business

Small business will get $1.6 billion in tax relief to encourage them to increase their digital footprints and improve their skills.

Small businesses can claim a $120 tax deduction for every $100 spent on training staff or investing in digital services up to $100,000 per year.

Women

The budget includes $1.3 billion to tackle violence against women and children, including funding for a national consent campaign.  There is also $38.6 million to encourage more women to take up trades.

Paid parental leave will become more flexible, allowing couples to decide how they split the 20 weeks, while single parents will be able to claim the full 20 weeks.

There is $330 million in health funding aimed at women, including for endometriosis clinics, miscarriage support and the breast cancer drug Trodelvy.

Foreign aid

The budget includes $156 million in aid to Ukraine but the total spending will fall to $3.7 billion in 2023-24.

Welfare

Jobseeker payments will increase by $13.20 to $629.50 for singles with no children. Pensions will increase by 10 billion over four years with payments increasing $20.10 to $987.60 for singles and $15.10 to 1488.80 for couples. 

The Economy

There are $8.6 billion in cash payments and tax cuts intended to address cost-of-living concerns.

Inflation is forecast to climb to 4.25 per cent this financial year, outstripping wage growth of 2.75 per cent and leaving workers with less in real terms. Inflation is then forecast to fall to 3 per cent in 2022-23 while wage growth rises to 3.25 per cent, leaving workers slightly better off.

Unemployment is set to fall 3.75 per cent combined with economic growth of 4.25 per cent this year and 3.5 per cent the next.

The budget forecasts a deficit of $79.8 billion this financial year and $78 billion in 2022-23.

Government debt is forecast to reach $1.2 trillion by mid-decade, with an interest bill of $26.3 billion. Despite this, ratings agency S&P Global said Australia’s triple-A credit rating was not under threat.