The big message from the Treasurer is his endorsement of substantial managed student growth into the 2030s and beyond, accompanied by an ambitious target of four in five working age Australians obtaining a tertiary qualification. Significantly, future student growth will be managed centrally but, for Australia’s disadvantaged and marginalised students, it will be demand-driven. This is a big opportunity to ensure our disadvantaged students are not left behind.
 
Securing needs-based funding will help ensure that the additional costs of supporting Australia’s disadvantaged students are met. And having some relief in the current student loan system (about $1,200 per student) and funding for practical placements, will cushion some of the financial pressures.
 
Helpfully, the Government appears to understand the case for a more student-centric higher education policy by establishing a long-overdue Student Ombudsman, agreeing minimum funding levels for student bodies and adopting higher education code that bears down on the gender-based violence afflicting Australian universities.
 
What is less clear from the Budget is the extent to which the new Australian Tertiary Education Commission set to commence in 2025 will drive better student equity outcomes and compel universities to be more accountable for their own outcomes. This is likely to become a heated issue but is, in essence, deferred for another day.

The 2024-25 Budget confirms that cost of $1.1 billion over four years for super payments alongside paid parental leave. While a positive step, this long-awaited initiative, set to take effect from July next year, seems like a gradual and modest stride toward achieving gender equality.

It's a glaring inconsistency that super is mandated for sick leave, annual leave, and long service leave, yet not for paid parental leave. Integrating super into Commonwealth paid parental leave isn't just about welfare; it's a fundamental workplace entitlement that should have been granted to caretakers as far back as 2011.

The importance of fostering women's financial independence and security cannot be overstated, especially in the context of combating domestic violence and enhancing quality of life in retirement, given women's longer life expectancy compared to men.

While bridging the gender pay gap requires time, the government must take more proactive measures to ensure fairness within the superannuation system. This could include initiatives such as government co-contributions targeting lower-income earning women, tax incentives to encourage voluntary contributions from working women, and extending super entitlements to carer payments. Such actions are essential for building a more equitable and inclusive financial landscape

Nurses and midwives are integral to an efficient and effective health system. The opportunity to expand their roles and importantly scope of practice is welcomed in the budget. What we know is that rural and regional Australia has limited resources and distance is a disadvantage when it comes to access to health care services. There are nurses across many of these rural and regional sites and it is an ideal time to enable expanded roles to meet the needs of the community.  

We applaud the government in making changes to supporting these roles, when often there is little else available. To change anything we must be willing to challenge status quo and look at care delivery in a way that it has never been looked at before.  Nurses and midwives are ideally placed to lead quality care and support the health of rural and regional Australia.

When we consider care, only 60% is evidence based, 10% results in harm and the remaining affords little benefit.  So we must change and build an evidence informed health system that puts the community first.  The Australasian Nursing and Midwifery Clinical Trials Network (ANMCTN) is doing just that and the Rosemary Bryant AO Research Centre, UniSA is supporting evidence informed care.

The 2024-25 Federal budget goes a substantial way to improving outcomes for Australian women, yet it falls short in adequately addressing the primary risk factor for disease among Australian women aged 15-44: gender-based and domestic violence. Despite its staggering $22 billion annual cost to the Australian economy, initiatives for the long-term prevention of gender-based and domestic violence received relatively little focus in this year’s budget. The government's announcement of $3.4 billion to tackle this issue, while significant, is not comparable to the clear economic and social burden of domestic violence.

Part of this funding is earmarked for reducing gender-based violence in higher education. This funding is critical, as we know that nearly one third of 18–19-year-olds in Australia report experiencing at intimate partner violence.  However, this initiative overlooks a crucial point for targeted prevention: middle adolescence. People typically begin to engage in romantic relationships during middle adolescence, before they reach higher education, and they establish foundational patterns of relationship behaviours during adolescence. This makes early-to-mid adolescence a critical time to intervene, and there is a clear need for effective and scalable prevention strategies for domestic and intimate partner violence.  

The government also announced $925 million specifically for aiding women and families escaping violent situations. This is an essential, yet reactive measure. Such funding likely does little to prevent the development and early occurrence of violence.  Gender-based and domestic violence continues to occur in part because the root causes and contributors (e.g., trauma, mental health and/or substance use disorders) have also not been adequately addressed.

Despite federal government action plans, and $1.3m over 2 years to establish an expert panel to review and advise on evidence-based practice in prevention, there needs to be more long-term, ongoing, funding towards the development and implementation of evidence-base prevention and early intervention strategies to reduce impact on individuals, families, and society. A further $4.3m for ANROWS to support the research that builds this evidence-base and informs such prevention initiatives is a welcome addition in this year’s budget.

Prevention of gender-based and domestic violence should be more than a line item in a budget—it needs to be a substantial and ongoing investment into a safer future for all Australians. Taking a proactive approach is essential to stemming the pervasive cycle of domestic violence, and more federal funding needs to be directed towards these initiatives.

Australia's aging infrastructure is increasingly becoming a burden, with significant maintenance costs and safety issues arising from deteriorated transport systems and road networks. These problems are exemplified by the burgeoning number of potholes, which not only pose safety risks but also contribute to higher costs of living as individuals face increased vehicle repair expenses.

In response to these challenges, the 2024 Federal Government budget is a good and modest step forward with $120 billion over the next decade to revitalise and expand essential infrastructure across the nation. This investment is aimed at catalysing recovery from the pandemic's impacts while propelling future economic growth and elevating living standards.

A few infrastructure budget highlights are as below:

• $1.9 Billion investment for Western Sydney Upgrades targets critical infrastructure improvements including road enhancements to alleviate congestion, future-proofing planning projects, and expanded train services to central Sydney. These enhancements are crucial for supporting Western Sydney's rapid urbanisation and economic expansion, aiming to improve both traffic flow and public transport efficiency.
• $3.25 Billion investment in North East Link, Victoria will bridge the Eastern Freeway and M80 Ring Road, closing a vital gap in Melbourne's freeway network. This project is expected to provide a faster, more reliable commuting route, enhancing the liveability of neighbourhoods by diverting traffic away from local roads.
• $2.75 Billion investment for the Brisbane to Sunshine Coast Rail Link is aimed at enhancing connectivity between these major hubs, boosting tourism, and providing essential infrastructure for the 2032 Brisbane Olympics.
• $467 Million investment for Bruce Highway, Queensland focuses on various upgrades to enhance road safety, reduce congestion, and improve flood resilience. As a major arterial route, these enhancements are vital for supporting transportation across Queensland, especially in regions prone to extreme weather events.
• $50 Million investment for Canberra Light Rail Extension aims to improve public transport options in Canberra, reduce traffic congestion, and support sustainable urban development by extending the city’s light rail network.
• $78.8 Million investment for a High-Speed Train Line between Sydney and Newcastle is allocated to develop a business case. This project aims to dramatically reduce travel times between Sydney and Newcastle, fostering regional development and reducing the commuter burden.
• $21 Million investment for the National Road Safety Data Hub focuses on enhancing road safety management across Australia. This initiative will provide accurate, comprehensive data to inform policy decisions and safety measures, aiming to improve road safety nationwide.

I should highlight that a major portion of the federal infrastructure investment is facilitated through National Partnership payments, which consist of financial contributions from the Australian federal government to states and territories for specific infrastructure projects. One significant challenge for states in utilising these payments is the requirement to meet specific conditions and performance benchmarks, which can be restrictive and limit flexibility in project execution. Moreover, given the inherent uncertainties associated with dependency on federal funding—which can be impacted by shifts in national policy or budgetary constraints, affecting planning and project timelines—a bipartisan approach to infrastructure investment is indeed necessary. This bipartisan strategy ensures greater long-term certainty and stability, facilitating consistent progress irrespective of changes in political leadership. It helps in aligning infrastructure goals across party lines, ensuring that essential projects receive the necessary support and funding continuity needed for their successful completion and operational sustainability.

Furthermore, central to this infrastructure investment strategy should be the integration of the national innovation and science agenda. By leveraging cutting-edge technologies and innovative practices, the government should aim to significantly reduce the costs associated with construction and maintenance, ensuring the sustainability of infrastructure projects. This forward-thinking approach would not only promote economic efficiency but also enhance the sector's ability to adapt to modern engineering and technological advancements.

This budget signals how the government plans to shape a net zero economy: a ‘future made in Australia’ with significant investment in green industry and clean energy skills. What’s less clear is how Australia will transition away from fossil fuels like gas which the government has said—in its just released Future Gas Strategy—will be part of our energy mix to 2050 and beyond.

In its Budget 2024 announcement, the government intends to cap international student intakes to curb housing shortage in the country. Looks like the migration and international students were scapegoated again on the country's stubborn housing crisis.

Not long ago the Property Council of Australia (PCA) had released a report confirming that international students make up only 4% of Australia’s rental market and are not to blame for the housing crisis, specifically based on research conducted by the Student Accommodation Council (SAC).

On the issue of the country housing crisis, the National Housing Finance and Investment Corporation (NHFIC) estimated a significant shortfall of 37,000 new housing supply in 2023-24 financial year. NHFIC (2023) projected that the housing market will receive 1,040,000 new supplies of dwellings in its 6-year projection. Whilst the new demand for the same period is projected to total 1,079,000 dwellings, a total shortfall of approximately 39,000. This shortfall is in addition to the current backlog in the housing market supply, with only 173,000 dwellings completed compared to the demand of additional 244,000 dwellings needed in the year to 30 June 2023 based on population growth.

These supply outcomes reflect challenges across all inputs into housing production, including overall cost of capital due to RBA cash rate hike, escalating cost of construction and labour cost among the significant determinants.

Summarily, the fundamental issue currently faced by the Australian housing market is simply, shortage, and a huge one.

Most importantly, with so many key drivers contributing to the current housing crisis in Australia and most of them are significant in their own right, capping the international student numbers, having it already confirmed insignificant by the PCA, the government is doubling down on 'killing the goose (international students) that lays the golden eggs, then shoving the dead goose into a sick kangaroo’s (housing market) throat' and hoping things can get better.

Bear in mind that education is currently one of the key exports of the country. This positive current account contributor is crucial for the country’s economy especially in the current challenging cost of living regime.

This is a critical moment in Australia's economic history. The world is shifting from fossil fuels to renewable sources of energy to meet net zero targets. And it is recognising the importance of participating in the industries of the future by moving up the resources and manufacturing value chain.

While Australia has been slow to catch up, this federal budget will now set the pace for change with a carefully calibrated approach to economic diversification and energy transition. Some critics, notably those who previously put the brakes on, will say it goes too far, and others will say it doesn't go far enough. But the National Interest Framework established by the Future Made in Australia Act will provide a coordinating focus for industrial policy, in consultation with key stakeholders.

This framework, combined with a strategic examination of the research and innovation system, gives us the chance to address productivity and real wage stagnation together with the challenge of climate change. It may not be enough but it’s a promising start. 

This budget entails a complex web of economics and politics. Its complexity reflects the challenges of striking a balance between fiscal responsibility, avoiding a resurgence of inflationary pressures, and addressing spending demands arising from the imperative to accelerate the energy transition, confront geopolitical priorities, and promote a fairer society. The budget acknowledges that these challenges are mounting, partly due to the increasing complexities of the world.

Unfortunately, the budget's effectiveness in addressing these challenges is limited. It represents a compromise solution – a 'second best' approach. For instance, the provision of a $300 energy rebate to all Australian households, while mechanically reducing inflation according to how inflation is calculated, is unlikely to alleviate underlying inflationary pressures and may even exacerbate them. For households not experiencing financial strain, lower energy bills could simply lead to increased spending in other areas.

The inclusion of production tax credits for green hydrogen and critical minerals refining and processing offers welcome support to sectors where Australia likely holds comparative advantages, potentially increasing the nation's prosperity. However, a more comprehensive tax reform, such as the implementation of an allowance for corporate equity, would encourage efficient investment across the entire economy rather than focusing solely on chosen industries.

The Albanese Govt has recognized the need to invest more in mental health services, and has committed to important new services initiatives – most obviously new ‘low intensity’ and ‘early intervention’ services that will be made directly available to those in need.

Further, it has committed to making more specialized care available to those who cannot afford the very considerable out-of-pocket expenses that are being charged by private psychology and psychiatry. The total amount of money ($888m over eight years) is not large, but $588m is targeted at the new low-intensity services.

Additional monies are devoted to expanding multidisciplinary care in association with general practice and for primary health networks to purchase more complex services where they are not readily available to a local community. These developments are all welcome additions, but they need to be well-designed before implementation and closely monitored after they are deployed to ensure they reach the intended members of the community.

The Treasurer Dr “Sunny Jim” Chalmers has brought down a cautious but optimistic budget, his third as Treasurer, that could well be an election budget if the Albanese Government decides to go early to the polls at the end of this year. Here are the 10 things you need to know about the Budget 2024-5 at first glance.

1. Fight inflation first but don’t sink the economy

The Government is worried about inflation, so they have brought in certain measures to provide relief to Australian households worried about their energy bills, housing costs and medicines in particular. The Treasurer hopes to put some downward pressure on consumer price index in the short term, the Reserve Bank of Australia doesn’t raise interest rates, or may even cut them. What happens to inflation and interest rates, post budget could make or break the government’s electoral fortunes going for a second term at the end of 2024 or first half of 2025.

1. Look, another surplus

The good news, symbolically is that Chalmers is likely to deliver his second surplus in a row, something that eluded his old boss, former Labor Treasurer Wayne Swan (and his Liberal predecessor Josh Frydenberg despite the ‘Back in Black’ mugs hype). Even though a surplus is not the objective of the budget it does give political kudos to Chalmers, even though the budget will return to deficit in future years.

1. Relief Restraint and Reform

The government has described this budget as ‘relief restraint and reform’. It’s providing tax and cost of living relief to all, it’s restraining spending in key areas, and reforming the industrial structure of the economy to meet future global challenges.

1. Show me the money

The government has kept its promise on tax cuts, rejigging stage 3 tax cuts of the Morrison government, providing an average $1,900 tax cut to Australians on 1 July. The tax cuts (not a surprise but good that they are confirmed) are part of the ‘relief’ part of the budget.

1. Hang on help is on its way

Apart from tax relief, the Government is sensitive to the cost of living and the impact it may have on its electoral fortunes. Therefore it’s providing energy bill subsidies to all consumers, rent relief, medical supplies relief and changing indexation of HECS to help tertiary students.

1. The Great Transformation

This is the most exciting and ambitious part of the budget, but maybe the most risky. The government wants Australia to make ‘the great transformation’ from traditional industries of comparative advantage to new industries in the renewable space so we can get to ‘net zero’ carbon emissions by 2050. Under the Future Made in Australia programme the government is spending $22.7 billion on assistance to industries to transition to net zero. It’s not quite the Inflation Reduction Act of the Biden Administration but it is a realisation that some government investment is needed if Australia wants to be a clean energy superpower and part of the new green manufacturing supply chain.

1. The Hydrogen Revolution

Part of ‘the great transformation’ is the $6-7 billion investment in green hydrogen, which could really impact Australia’s future as an energy exporter as well as meeting our energy needs at home. On top of that there’s $7 billion for critical minerals plus support for green steel and other manufacturing sectors.

1. It’s all about National Security

The changes in geo-politics puts more emphasis on national security. As a result the defence expenditure has been boosted by $50.3 billion. This is not only significant in terms of the budget but in itself is a major part of the industry policy of the Albanese government. This will be a boom time for defence industries which in turn, feeds into the Future Made in Australia plans.

1. The Caring Economy

The Treasurer has put a lot of emphasis into what he dubs ‘the caring economy’ healthcare, aged care, childcare and education. In turn, the wages of aged care and childcare workers (and other caring professions) have received a funding boost. The Treasurer, however has also talked about restraint and reform and plans to improve compliance in areas like NDIS to rein in excessive spending.

1. The bottom line – economic cycle or political?

The Treasurer has been grilled in post budget interviews about this being more about the political cycle than the economic cycle. He has replied that it is about the economic cycle. And the Treasurer should know, as the subject of his PhD thesis, former Treasurer and Prime Minister Paul Keating always said that good economic policy (and economic management) is good politics.

Major issue with the budget is 'Later' rather than 'Sooner'. 

Given the RBA looks at the trim measure of inflation, the changes to electricity bills probably won’t have much impact on the RBA’s decision making process. There is the chance that the rental assistance will simply lead to higher rents, leaving renters no better off. Big spending on housing and infrastructure will face continued constraints on materials and labour.

This means that implementing the policy will be challenging in the short run and we are likely to see no new big increases in housing supply. However, over the long run these big spending projects might have the impact of competing with other businesses for scarce resources, including investment dollars. Becoming a renewable ‘superpower’ will mean vast amounts will be needed on R&D, technology, start-ups and ensuring a dynamic business environment.

The government needs to make sure it doesn’t supplant private business investment in this area but supports business development, including helping small business transverse ‘death valley’ to become viable, productive and growing enterprises. It is only through a growing private business sector that Australia’s productivity slump will be reversed.

The government faced a dilemma with this budget. Spend too much, and they risk overheating an already supercharged economy and exacerbating cost-of-living pressures.  Spend too little, and they risk providing insufficient support for business should the long-expected-but never-quite-here downturn come to pass. It seems that the surplus of $9.3B represents a carefully calibrated middle-path between these two unpleasant scenarios. 

Inequality in Australia has been too high for some time, and this collection of fiscal programs takes a small step in the right direction. Tax breaks for high-income Australians have been curbed, while there is increased funding for jobseekers, which will do a little to help mitigate poverty and disadvantage.  Increased expenditure on mental health programs should also benefit vulnerable individuals, and this benefit should feed through to reduce social problems associated with poor psychological wellbeing. However, other changes (such as alterations to the way interest on student debts are calculated) could easily end up benefiting a relatively affluent subset of the Australian population.  

Overall, a patchwork of funding initiatives that on balance help the working Australian family. But a lot more could be done here.

This is a strong Budget for a future based on science and innovation.

It charts a clear pathway towards boosting national investment in economy-powering R&D through a review of the R&D system and the Future Made in Australia initiatives.

STA has consistently advocated that to maintain our standard of living and create the economy we want for the future, we need to increase R&D expenditure to 3% of GDP as fast as possible. If we had this level of investment right now, the economy would be $100 billion and 42,000 jobs better off.

The Review of the R&D system is timely and welcome – it has the potential to better connect the innovation ecosystem to support business, build a thriving economy, and accelerate the development of products and solutions. This can reverse the decline in national investment in R&D.

The investments through A Future Made in Australia will incentivise business to add more heft to that R&D effort.

This includes $566 million to Geosciences Australia to map Australia's resources and critical minerals, and a $1.7 billion Innovation Fund to support innovative green technologies. These are positive first steps towards diversifying our economy.

A funding boost of $38.2 million showed the government is committed to boosting diversity in STEM. 

We are delighted to welcome this announcement. This funding recognises that there are highly successful programs, such as STA’s Superstars of STEM, that are powerfully shifting the dial on diversity in STEM, and delivers on the findings of the Diversity in STEM review.

The Australian Academy of Technological Sciences and Engineering (ATSE) welcomes budget commitments to reviewing Australia's languishing investment in Australian science and innovation and backing clean energy industries, however investment can’t be kicked further down the road. 

The initiatives outlined as part of the Future Made In Australia measure show the government’s commitment to creating clean energy industries in Australia with investments in batteries, and tax incentives for critical minerals and hydrogen production. This must be backed with stronger investment in research and development or else Australia risks becoming a technological laggard in the global market.  
 
ATSE welcomes the announcement of the Independent Research and Development (R&D) Review. The review will be essential if Australia is to create the future industries and innovations needed for the Future Made in Australia to become a reality. ATSE has long advocated for this, including in our pre-budget submission, and looks forward to participating in the review. 
 
ATSE also supports the $1.1 billion over five years for the first stage reforms of the Universities Accord, with a focus on equity and access to higher education. This includes the already announced measures to pay for selected student placements and limit the indexation of HECS-HELP loans. 
  
The extension of Women in STEM programs like the Elevate: Boosting Women in STEM scholarship program delivered by ATSE is a welcome measure. This program was favourably reviewed by the Government's Diversity in STEM review and we encourage further investment to propel more diverse cohorts into STEM careers. We also encourage the formation of a council for Diversity in STEM to replace the Women in STEM Ambassador role.

The Australian Academy of Science applauds the Federal Government’s commitment to a strategic examination of Australia’s research and development (R&D) system announced in the Federal Budget tonight. 

The strategic examination is a welcome acknowledgement by the Government that a stronger, more resilient nation cannot be built with a stagnant and siloed R&D system based on decades-old settings way past their use-by date. 
 
The Academy has been arguing the case for this long-overdue whole-of-sector analysis since 2018.
 
It is a necessary precursor to the creation of a strategic roadmap that can direct R&D in Australia and reverse the 14-year decline in investment that has left Australia well below the OECD average, uncompetitive and ill-equipped to meet our national ambitions. 
 
Investment in Australia’s science and research system is currently spread over 227 programs and 15 federal portfolios, with multiple ministers and departments having key responsibilities. 
 
A strategic examination of Australia’s R&D system is the first step to align national effort across the whole of government, industry, universities, and philanthropy to create an environment where investment is effective, strategic and scaled.
 
The examination is cross-portfolio and cross-sectoral and is a once-in-a-generation opportunity to create the necessary conditions for science and research to maximise its contribution to our national prosperity.  
 
The Academy looks forward to working closely with the Government as it undertakes this important strategic examination.
 
The Academy earlier this month announced it is developing a ten-year plan to explore ways to ensure that Australia has the necessary scientific capability to meet an unpredictable future and consider how science needs to evolve to advance Australian interests locally and globally. 
 
The Academy’s 10-year plan, to be published later this year, will be a complementary and independent input into the strategic examination announced in the Budget

Given the Australian Government released the Early Years Strategy two-days ahead of the 2024-2025 budget, the Government has committed to invest considerably in early childhood over the 2024-2025 financial year.  Early childhood education is critical in providing the foundation for positive long-term health, wellbeing, learning and economic outcomes for children and young people.

The important work undertaken by early years teachers and educators is significant in reducing vulnerability and positively influencing a child’s life trajectory.

The Government’s commitment to the early years will enable more children and families to access early education and address the concerning percentage of Australian children who are considered developmentally vulnerable by the time they reach their first year of primary school.

It is also expected that the Australian Government will fund a much-needed wage increase for teachers and educators in early childhood services. An increase in funding will support the sustainability of the early childhood workforce who tend to drift to primary school because of poor wages and conditions. Therefore, the focus on early childhood in the 2024-2025 budget is welcome and acknowledges the importance of this period of a child’s life and the need for high-quality interventions to improve learning and wellbeing outcomes for young children and families.

The care and support economy is gaining momentum, and it is important not to lose sight of that now and into the future – in turn this should also help workforce shortages, labour productivity and overall growth in the economy.

While increases in wages are available now for aged care workers, quality of care also needs attention in the form of inclusion of adequate training for all care workers. Care for children warrants similar investment.

Wage or price is not always a signal of quality care, and higher wages must be accompanied by adequate training, including appropriate training hours and placements into the sector, to ensure quality of care for the children and older people. It is also important to monitor that increased cost of care and inequity in access to care, is not inflated due to higher wages.