The 2022-23 federal budget has some positive measures for Australia’s multicultural communities but there are also significant financial challenges ahead for all of the nation’s most vulnerable people.

The budget was delivered amid a double dilemma of rising in inflation, which reached 7.3 percent the day after Treasurer Jim Calmers announced it, and a soaring cost of living.

Jim Chalmers

The government has argued that cash rebates to combat rising prices would drive inflation even higher.

But electricity prices are forecast to rise 56 per cent over the next two financial years. While the government has ruled out rebates, it has hinted at possible regulatory measures to rein in prices

However, there are cost of living measures in the budget, including cheaper childcare, more paid parental leave, better access to health care, cheaper medicines and a better standard of aged care. It also provides fee-free TAFE and more university places.

Cost of living

The budget includes $4.7 billion over four years to deliver cheaper child care for 1.26 million families.

There is also $531.6 million over four years to expand Paid Parental Leave to 26 weeks by 2026.

More affordable housing, including through a new National Housing Accord which brings together governments, investors and industry to boost supply and deliver up to 20,000 new affordable homes. The budget outlines how the accord will see governments, investors and industry work together with a goal to build one million new homes over five years from 2024.

And $787.1 million over four years to reduce the general patient co-payment for treatments on the Pharmaceutical Benefits Scheme from $42.50 to $30 per script.

Also, there is support for wage increases for the lowest paid workers.

Education

The budget includes 480,000 fee-free TAFE places and a $50 million TAFE Technology Fund to modernise TAFEs.

There are 20,000 additional university places for disadvantaged Australians ad well as $474.5 million over two years to support student well-being and improve classrooms.

Ten thousand “new energy apprenticeships” will be offered to train people as electricians able, for example, to install solar power systems – and with support payments of up to $10,000 during their apprenticeship.

Employment

Boosting the Work Bonus income bank to give older Australians the option to work and keep more of their pension, the government argues.

The government has also promised support for women’s workforce participation and advancing gender equality.

Immigration

More skilled visas will be available to help businesses fill labour shortages, with the number of visas increasing from 79,600 to 142,400

A new Pacific Engagement Visa will also be introduced, with up to 3,000 places available from next year for nationals of Pacific Island countries and Timor-Leste. This will be on top of the 195,000 available as part of the new permanent visa program.

The permanent Migration Program will be expanded to 195,000 in 2022–23. This is an increase of 35,000. More than 90 per cent of new places will be for skilled migrants, and more than a quarter targeted to regional areas.

To address skills shortages more quickly, additional funding of $42.2 million will be provided to accelerate visa processing, reduce the visa backlog and raise awareness of opportunities for high-skilled migrants in Australia’s permanent Migration Program.

Student and secondary training visa holders will have their work restrictions relaxed until 30 June 2023. This will allow them to work additional hours in any sector, helping to address workforce shortages.

The Government will provide $20 million over four years from 2022–23 to provide more flexible delivery options for the Adult Migrant English Program and increase case management support to students.

There is $18.4 million over four years from 2022–23 to allocate additional three year Temporary Humanitarian Concern Visas (subclass 786) to Ukrainians in 2022–23, and extend access to Medicare for a 12 month period for Ukrainians, including their immediate family members, who hold a Bridging Visa E

Also, $600,000 in additional funding in 2022–23 has been made available for the Ukrainian Community and Settlement Support program to provide further support for the ongoing settlement and integration needs of those arriving in Australia from Ukraine.

By creating greater training opportunities for Pacific workers within the aged care sector the budget aims to ease skill shortages and build stronger economic relationships with Australia’s Pacific neighbours.

The Government says it will scale up the aged care training pathway for the Pacific Australia Labour Mobility scheme with an additional 500 places in 2022–23.

It is also developing a Migration Strategy to ensure the migration system serves Australia’s national interests and complements the skills and capabilities of Australian workers. The Strategy will focus on ways to grow Australia’s economy and attract high-skilled migrants, while also furthering Australia’s geo-strategic interests, unlocking the potential of all migrants and providing clear pathways to permanent residency.

Climate change/Environment

The budget included $25 billion in climate change-related spending through until 2030. That includes $20 billion for Albanese’s election promise to upgrade the electricity grid so more renewable energy can be fed into the system.

There’s $275 million to encourage the use of electric vehicles, $225 million for community batteries and household solar, and a $345 million cut to fringe benefits tax that will save employers who provide cars to their employees $9000 per year, or individuals $4700 per year.

Disaster Relief Australia will be funded so more than 5000 volunteers will be ready when disasters strike, while $200 million will be put into a disaster-ready fund for prevention and resilience.

The budget includes $1.8 billion investment in action to protect, restore and manage the natural environment.

Up to $200 million per year on disaster prevention and resilience initiatives through the Disaster Ready Fund, as well as additional funding for flood affected communities and extra staff to quickly get Australians the support they need.

Industry/Infrastructure

The budget establishes a $15 billion National Reconstruction Fund to support manufacturing in Australia.

There’s more than $120 billion of investment in transport infrastructure over the next 10 years and $2.4 billion in NBN funding to extend fibre access to 1.5 million more premises as well as $1.2 billion for the Better Connectivity for Regional and Rural Australia Plan.

Health

From January 1, the government’s election promise of cheaper medicines will be delivered. In practice, that means the PBS maximum co-payment to get a script filled will fall from $42.50 to $30

There is also $2.6 billion in funding for COVID-19 vaccines and treatments for people who are at risk.

The National Disability Insurance Scheme will cost $166.6 billion over four years, a rise of $8.8 billion, while the agency that runs the scheme will hire an extra 380 staff at a cost of $158.2 million. An initiative to stop the scheme being rorted has been launched at a cost of $126 million over four years.

Multicultural Australia

A million dollars has been allocated to the Multicultural Policy Framework Review

Women

The government has committed improve the quality of spending on Women’s Safety to enhance the Government’s contribution to the First Action Plan of the National Plan to End Violence Against Women and Children 2022–2032

Funding will be provided for new initiatives to better support the National Plan, including:

$39.6 million in 2022–23 to meet increased demand for the Escaping Violence Payment.

There is $25 million over 5 years from 2022–23 for a trial of innovative responses to address the behaviour of the perpetrators of domestic violence

Also, $13.9 million over 5 years from 2022–23 for a new First Action Plan Priorities Fund to provide grants to address emerging priorities and $12.6 million over two years from 2022–23 for a pilot program to assist Temporary Visa Holders who are experiencing domestic violence.

The numbers

The deficit for 2022-23 is now forecast to be $36.9 billion, less than half of the $78 billion predicted in March.

Because of higher commodity prices, even though debt will still reach a trillion dollars, it will be lower than previously forecast.

The threat of recessions globally, high inflation, cost of living pressures and higher interest rates are expected to slow growth in Australia to 1.5 per cent in 2023-24.

Inflation is expected to peak this year at 7.75 per cent before reaching about 3.5 per cent by June 2024.

Treasury assumes electricity prices will rise by an average of 20 per cent nationally in late 2022, with a further 30 per cent rise in 2023-24.

Unemployment is expected to increase to 4.5 per cent by the June quarter of 2024.