Future Made in Australia
The government is firmly set on reviving local manufacturing, with its Future Made in Australia Act sharing the limelight in this year’s budget with the changes to stage three tax cuts.
The $22.7 billion Future Made in Australia initiative essentially groups a number of new and existing manufacturing and renewable energy projects under one umbrella.
On Tuesday evening, Chalmers said Future Made in Australia is “a crucial part of a growth agenda which is all about attracting investment in key industries, making our country a renewable energy superpower, strengthening our defence capabilities and economic security, supporting small business to grasp the opportunities of our transforming economy, and expanding and reforming tertiary education for a more skilled workforce”.
As part of this initiative, the government will provide an estimated $19.7 billion over ten years from 2024–25 to accelerate investment in Future Made in Australia priority industries, including renewable hydrogen, green metals, low carbon liquid fuels, refining and processing of critical minerals and manufacturing of clean energy technologies including in solar and battery supply chains.
Funding is expected to catalyse clean energy supply chains and support Australia to become a renewable energy superpower.
Also a part of the Future Made in Australia initiative is the provision of $17.3 million over four years from 2024–25 (and $3.1 million per year ongoing) to promote the development of sustainable finance markets in Australia.
This includes $10 million over four years from 2024–25 (and $1.9 million per year ongoing) for additional resourcing for ASIC to investigate and take enforcement action against market participants engaging in greenwashing and other sustainability-related financial misconduct, as well as $5.3 million over four years from 2024–25 (and $1.2 million per year ongoing) for the Treasury, ASIC and APRA to deliver the sustainable finance framework, including issuing green bonds.
Payday super plus paid parental leave
Starting from July 1, 2026, employers must pay superannuation at the same time they pay salary and wages to employees.
This change aims to give employees better visibility and control over their entitlements and helps the Australian Taxation Office (ATO) in recovering unpaid superannuation.
The ATO will receive $40.2 million to improve their ability to match data and take action against cases of underpaid super.
Moreover, the Treasurer announced $1.1 billion for parents accessing the government-funded paid parental leave scheme will be paid superannuation in addition to their payments from next July.
Under Labor’s proposal, super will be paid at 12 per cent of the paid parental leave rate with about 180,000 families said to benefit on an annual basis.
Super recovery program
The government said it will recalibrate the Fair Entitlements Guarantee Recovery Program to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024.
This will achieve efficiencies of $13.0 million over four years from 2024–25 (and $29.9 million over the medium term) through an expected increase in tax receipts of $63.1 million over four years from 2024–25 (and $114.4 million over the medium term), with $44.4 million over four years from 2024–25 (and $96.9 million over the medium term) expected to be paid to superannuation funds.
Additional funding
The government also confirmed $187.0 million will be allotted over four years from 1 July 2024 to the ATO to strengthen its ability to detect, prevent and mitigate fraud against the tax and superannuation systems.
The government will provide $17.3 million over four years from 2024–25 (and $3.1 million per year ongoing) to promote the development of sustainable finance markets in Australia, including:
The cost of this measure will be partially met from cost-recovery through ASIC and APRA industry levies.