What’s in it for you? Tasmania’s guide to the Federal Budget
Tasmanians will have to wait for the upcoming federal election campaign to find out what fresh big-ticket policies, tax cuts and spending pledges might benefit them. BUDGET UNPACKED >>
Tasmania
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FEDERAL Treasurer Josh Frydenberg has taken aim at the cost of living, jobs and wage growth in a budget that sets the stage for the Coalition’s bid for a fourth consecutive term in office.
But Tasmanians will have to wait for the upcoming federal election campaign to find out what fresh big-ticket policies, tax cuts and spending pledges might benefit them.
The election is expected to be called within days.
The Budget contained $100m in new funding for the Great Eastern Drive project in the seat of Lyons - but the 2022/23 Budget was lacking in any other big infrastructure announcements or other major initiatives for the state.
The Marinus Link electricity interconnector project was mentioned favourably, but there was no new federal funding.
Many of the Budget’s major announcements were revealed in the days and weeks prior.
Motorists will benefit from a 22 cent per litre cut in fuel excise predicted within a fortnight which will cut the cost of a tank of petrol by between $8 and $10 for the average family sedan.
And there will be one-off $420 cost of living tax offset for more than 10 million low-and-middle income earners and a one-off $250 cost of living payment for six million welfare recipients.
There were no new tax cuts.
Also among the new announcements were generous tax concession for small business for training and investments in digital technology.
Treasurer Josh Frydenberg hailed his fourth budget as “the largest and fastest improvement to the budget bottom line in over 70 years.”
The deficit for 2022-23 is expected to be $78 billion, with deficits averaging around $50bln predicted in each of the following years.
Jobs growth is tipped to remain strong, with unemployment at 3.75 per cent next financial year and wages growth at 3.25 per cent nationwide – outstripping a predicted three per cent CPI increase.
Real GDP growth is seen as easing slightly to 3.5 per cent.
And the Treasurer predicted that the nation’s net debt will reach $714bln next financial year and peak at $864bln in 2026.
Mr Frydenberg said the government’s economic plan was working to leave the tribulations of recent years behind.
“Tonight we look to the future. Realistic about the growing threats we face. Ambitious for our country and our children. Optimistic about what can be achieved,” he said.
“Over the last three years Australians have been tested. Drought, fire, floods. A global pandemic for which there was no playbook.
“Despite the challenges, our economic recovery is leading the world. This is not a time to change course.
This is a time to stick to our plan.”
There were no nasty surprises for the state government in the fine print of the GST sharing arrangements in the budget.
Last year’s state budget predicted $3.114bln in receipts, later revised upwards to $3.169bln.
A Commonwealth Grants Commission estimate released last week predicted $3.035bln, but the Budget papers suggest $3.125bln will flow to state coffers next financial year – about in the middle of the range of predictions. - David Killick
BUDGET BREAKDOWN
New funding for projects and initiatives in Tasmania are few and far between in the 2022/23 budget, but there were some winners depending on what part of the state you live in.
The electorate of Lyons secured what could be one of the biggest wins for Tasmania in the budget - $100m for tourism support for the Great Eastern Drive.
Details are scarce on exactly what that entails.
The Great Eastern Drive funding is included in $639.9m promised for priority road and rail projects in Tasmania.
Other projects included in the spend have already been announced, with more than half of that budget, $336m, to be spent on stage two of the northern roads package.
Other existing funds for infrastructure includes $96m for tranche four of the Tasmanian Freight Revitalisation Program, $56m for the Tasmanian Roads Package, $24m for the Bell Bay line, $14.4m for the Melba Line bulk minerals rail hub and $13.5m for the northern transit corridors solutions
Another new funding pledge comes as part of the government’s additional $6.9bn for the national water grid fund.
$13.73m in extra funding has been allocated to deliver the Don Irrigation Scheme which will fund the construction of two distribution networks to enable 4.8 gigalitres of irrigation water to stretch across a 53km pipeline in summer.
An extra $5m has also been committed to the Bicheno Recycled Water Scheme to create pipelines, pump stations and a 100 megalitre storage dam and $1.5m for the Lake Leake dam life extension upgrade, to add an extra 100 years on the dam’s life span.
Another notable funding commitment is one the Federal government announced earlier this year - $800m to strengthen the country’s position in Antarctica.
The cash also flowed for mental health initiatives, including Devonport in the wake of the Hillcrest Primary tragedy, with $800,000 budgeted for mental health support for the Devonport community.
Those receiving the support will include families, children and first responders.
Meanwhile a veteran wellbeing program across Australia will be expanded to include Tasmania as part of a $50m commitment.
A program helping young people with their mental health will also be expanded to include Tasmania.
The Early Psychosis Youth Service is delivered by headspace and will be operating in every state and territory.
As the federal government opened its wallet for women, Tasmanian women struggling with employment were also able to cash in, with a new initiative funded for the next three years.
The $800m Women in Work Boots initiative aims to assist women hoping to secure a job in agriculture, horticulture, civil construction, rail, transport, mining and quarrying industries.
And there’s help on the way to ease the growing burden of the Federal Court as it experiences “significant year on year increase in caseload” in Tasmania.
Announced in the budget is additional funding of $3.2m over three years along with $1.1m every year after to maintain a permanent judicial position in the Tasmanian registry of the Federal Court of Australia.
“The funding enables the Federal Court to maintain an uninterrupted judicial presence in Tasmania, to address increases in filings, and assist with the finalisation and resolution of a growing volume of matters across Tasmania,” deputy Prime Minister Barnaby Joyce said in the regional ministerial budget statement.
“Without a permanent judicial resource in Tasmania, regional Tasmanian court users would be forced to travel to the Australian mainland to access Federal Court registries in Sydney or Melbourne.” - Judy Augustine
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