Key initiatives impacting MTA Queensland members and the MTA Institute

Background

The Federal Labor Government handed down the 2023-24 Budget on 9 May 2023.

This Budget, the second delivered by the Albanese government, aims to respond to the Government’s election commitments and priorities, while also navigating tightening global financial conditions and historic inflation rates.

In the face of these challenges, the government must be applauded for delivering a surplus of $4.2 billion, the first in 15 years. However, this windfall is expected to be short-lived, with predictions of $13.9 billion and $35.1 billion deficits in the coming years proving that further necessary spending cuts will be required.

With this in mind, it is critical that government engages with industry to identify investment opportunities that promote tangible advancements in productivity capacities and economic growth while focusing on responsible fiscal spending. As a nation, we cannot rely on record natural resource prices, low rates of unemployment, and increasing tax receipts to continue to drive our financial recovery.

We are pleased to see government take steps to tackle some of the current inefficiencies in this budget. On the back of widespread concern around chronic skills shortages, the Budget moves to implement several apprenticeship support programs. The key focus is to boost free training in skill shortage areas and encourage a more diverse and inclusive workforce in trade sectors.

The budget also provides programs to boost the uptake of electric vehicles in Australia.

Issues

Energy Incentive

Small Business Energy Incentive, aimed to help small and medium businesses electrify and save on their energy bills. This incentive will provide $310 million in tax relief to support up to 3.8 million businesses.

Businesses with annual turnover of less than $50 million will have access to a 20 per cent tax deduction for eligible assets supporting electrification and more efficient use of energy, from 1 July 2023 until 30 June 2024. Up to $100,000 of total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business. This is in addition to $62.6 million towards energy efficiency grants for small and medium enterprises in the October Budget.

Instant assets write off

The instant asset write-off scheme has been cut back, with businesses able to now claim equipment of up to $20,000, down from $150,000. The threshold for eligible businesses has also changed, with businesses requiring an annual turnover of less than $10m to be eligible.

ATO Compliance

From 1 July 2026, employers will be mandated to pay superannuation entitlements to employees on the same day that regular salary and wages are paid.

$40.2m will also be invested over the next 12 months to improve data matching capabilities in order to better identify cases of superannuation underpayment

Investing in Skills and Training 

The Government is negotiating with the states and territories on a new 5-year National Skills Agreement to commence from 1 January 2024. The Government will also fund a further 300,000 TAFE and vocational education training places to become fee‑free.

Targeted Support for Apprentices

The Government is redesigning Australian Apprenticeship Support Services to improve apprenticeship career pathways and provide more support for completions. The re‑designed program model aims to support their needs of apprentices, help remove barriers for women in male‑dominated trades and strengthen support for First Nations apprentices, apprentices with disability and those in remote areas.

Foundational Skills Programs

The Government is expanding access to foundation skills training and supporting community‑based and culturally safe pathways to training. More Australians will be able to develop the language, literacy, numeracy, and digital skills they need to participate successfully in work, education, and the community.

Boosting skilled migration

Supporting skilled migration through allocating around 70 per cent of places in the 2023‑24 permanent Migration Program to skilled migrants, providing an extra 2 years of post‑study work rights to Temporary Graduate visa holders with select degrees, and increasing the Temporary Skilled Migration Income Threshold to $70,000.

$75.8m will also be spent over two years to expand resources to process the current surge in visa applications.

Improved skills recognition 

Skills Assessment Pilots to provide onshore migrants with fast‑tracked skills assessments, free employability assessments, and access to further training to improve their employment prospects.

In addition, the Mechanism for the Mutual Recognition of Qualifications will ensure students from India and Australia will have greater certainty that the qualifications they attain will be recognised by both countries.

National Electric Vehicle Strategy

Building on the Driving the Nation Fund and the Electric Car Discount, the Government has released Australia’s first National Electric Vehicle Strategy. The Strategy sets a national framework to guide investment and support uptake of electric vehicles in Australia. As part of the Strategy the Government is providing $7.4 million to support the introduction of a Fuel Efficiency Standard, to ensure vehicle manufacturers prioritise Australia’s market for electric vehicles and other fuel-efficient technologies.

The transport sector will further benefit from $7.8 million to develop a Transport and Infrastructure Net Zero Roadmap and Action Plan. The Roadmap and Action Plan will present an integrated approach to advance the reduction of emissions across transport modes, alternative fuel, new technology and enabling infrastructure.

$5.2 million will be invested over 4 years to develop a national charging infrastructure mapping tool.

The Government will sunset the eligibility of plug-in hybrid electric cars from the fringe benefits tax exemption from 1 April 2025.

Hydrogen Headstart 

$2 billion to accelerate large-scale renewable hydrogen projects through Hydrogen Headstart.

$38.2 million to establish a Guarantee of Origin scheme to underpin markets for green energy, including hydrogen and other low emissions products.

Heavy Vehicle Road User Charge

The heavy vehicle road user charge is being raised by 6 per cent a year for the next three years from 27.2 cents per litre of diesel to 32.4 cents by 2025-26.

10 May 2023