Last night saw the Federal Government deliver the 2024-25 Budget, with 'cost-of-living relief' at the top of Treasurer Jim Chalmers' agenda.
In terms unpacking the Budget detail and providing an economic outlook for the financial year ahead, Freight & Trade Alliance (FTA) and the Australian Peak Shippers Association (APSA) are proud to host a webinar on 4 June 2024 featuring Saul Eslake, one of Australia's best-known economic analysts and commentators - FREE & EXCLUSIVE TO FTA / APSA MEMBERS - register HERE
From an international supply chain, logistics and border clearance perspective, Russell Wiese from CGT Law has provided a detailed commentary available HERE
In addition, FTA and APSA have made additional preliminarily observations identifying the following extracts from the Budget and supporting papers.
AUSTRALIAN BORDER FORCE
Reference is made in the Budget to "address underfunding at Home Affairs and the Australian Border Force, helping to sustain operations and maintain capability to secure our borders"
Consistent with past practice, supplementary funding is provided to the Australian Border Force on an annual basis for border protection activities, based on operational requirements. In the 2024–25 Budget, the supplementary increase to border protection funding is $266.7 million, bringing the total funding for 2024–25 to $2.0 billion.
DEPARTMENT OF AGRICULTURE, FISHERIES AND FORESTRY Since the 2023–24 Budget, the funding has been increased for large scale responses such as the National Red Imported Fire Ant Eradication Program in Queensland and the outbreak of Varroa destructor.
An additional $268.2 million over four years from 2024–25 has been provided for the Commonwealth's share of the cost of the revised plan for the National Red Imported Fire Ant Eradication Program in Queensland.
In June 2023, the upper limit of the cost-shared budget for the response to the outbreak of Varroa destructor was increased to $132.0 million, with the Commonwealth committing to contribute 40 per cent of this amount and allocating an additional $26.6 million over four years from 2023–24 as a provision for underwriting the 16 cost-sharing industries' contributions for this response. In February 2024, the Transition to Management plan was endorsed by the participating jurisdictions, with a revised upper limit of $100.0 million.SIMPLIFIED TRADE From 1 July 2024, 457 nuisance tariffs will be abolished, streamlining $8.5 billion in annual trade and eliminating tariffs on goods such as toothbrushes, fridges, dishwashers, clothing, and sanitary products; saving Australian businesses approximately $30 million per year in compliance costs. $29.9 million to coordinate trade simplification and deliver the Digital Trade Accelerator program, and $10.9 million to enhance the Go Global Toolkit to support exporters
DEPARTMENT OF FOREIGN AFFAIRS AND TRADE
The 2024–25 Budget estimates continue to include provision for the Australia European Union Free Trade Agreement, which has not been finalised. This provision is assumed to impact customs duty receipts. No other Free Trade Agreements (FTAs) that are currently under negotiation are expected to have a material impact on revenue over the forward estimates.
This Budget includes $14.3 million to improve the competitiveness of the Australian economy by working with trade partners to support global rules on unfair trade practices and to negotiate benchmarks for trade in high quality critical minerals.
AUSTRADE
The successful Australia-India Business Exchange is to be expanded, diversifying trade and helping even more Australian businesses build commercial ties with India and across South Asia.
There will also be $2 million to support Australian agricultural exporters enter the Chinese markets.
WESTERN SYDNEY AIRPORT
$20 million additional funding will be provided for planning to extend the rail line from the Western Sydney Aerotropolis to Macarthur.
Western Sydney International Airport is due to welcome its first travellers and freight in 2026. A further $302.6 million over five years has been provisioned to enable operations at the Airport, including for border agencies to progress design, fit out and commissioning of facilities, provide federal policing and establish a detector dog unit.
INLAND RAIL
Following the completion of additional planning, $720.0 million will be released for the construction of the Inland Freight Route in Queensland, providing an alternative to the Bruce Highway and improved connectivity between the NSW border and Charters Towers. $540.0 million is also being invested to improve the reliability of the Australian Rail Track Corporation's interstate freight rail network, including $150.0 million to upgrade the Maroona to Portland Line.
SUSTAINABILITY
$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 will catalyse clean energy supply chains and support Australia to become a renewable energy superpower. This includes:
- $6.7 billion over a decade would be spent on a new Hydrogen production tax incentive of $2 per kilogram, starting from 2027/28.
- About $2 billion was allocated to a round of the successful Hydrogen Headstart program to give long-term certainty to producers of the future fuel and feedstock
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