In the lead up to the 2023 Federal Budget, Prime Minister Anthony Albanese said supporting vulnerable Australians, growing the economy, and strengthening the budget to make our finances more secure for the future would be key foundations of this year’s announcements.
Both domestic and global factors have seen grocery, fuel and housing costs escalate over the past few years putting enormous pressures on families and businesses. This includes farmers who continue to be challenged by high input costs, workforce shortages and production difficulties due to extreme weather events and disrupted supply chains.
The rising cost of living pressures on Australians has put pressure on the Albanese government to deliver cost of living reform. As we begin to sift through the budget announcements this week, agriculture and rural communities are hoping that measures will go beyond short-term cost of living relief packages. We will be watching closely to see how these measures will strengthen areas of the economy that matter to all including energy, food, housing, workforce security, and productivity.
With the initial announcements now made, several items are of interest to QFF and our members. The Small Business Energy Incentive will see SMEs investing in energy-efficient systems eligible for bonus tax deductions. Expenditure will be capped at $100,000 attracting $20,000 in deductions for businesses investing in next-generation refrigeration, batteries, or thermal energy storage and the like.
An additional $1 billion of funding has been announced for biosecurity over four years which includes greater regulation, surveillance and international engagement. Disappointingly, the cost of this will be partly funded through a new ‘biosecurity protection levy’ on farmers from the middle of 2024, which is estimated to raise about $150 million over three years.
Funding for small business innovation equating to $392 million will be delivered through the Industry Growth Program, an initiative designed to support commercialisation and growth of concepts, technologies and budding operations aligned with priority areas outlined in the National Reconstruction Fund.
A $2 billion commitment has been made to the development of a clean hydrogen industry in Australia with the details around this investment still not known. Also amongst the announcements on Tuesday night was $83 million over four years to create a new ‘Net Zero Authority’, $23.4 million to go towards helping SMEs to strengthen their cyber security capacity and hundreds of millions for climate-smart agriculture and disaster resilience.
The slim surplus reflected in this year’s budget is expected to be short lived with future budgets expected to be firmly in the red. Inflation remains the problem child in the room with warnings from the Federal Treasurer about a slowing global economy and implications for our economy locally.
QFF will continue to work through the details of this budget. Of course, it is not just about the funding announcements and the associated dollar amounts, it is also very much about how programs and initiatives are delivered on the ground. If we are to successfully face the challenges and leverage the opportunities ahead, it is imperative that governments of all levels walk alongside industry and community.
QFF calls on the Federal Government to keep agriculture firmly at the table as we move forward.