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The Morrison Government is delivering more than $3.8 billion for a better environment in the 2019 20 Budget, including Australia’s biggest ever direct investment in emissions reduction.
$3.5 billion will be invested through the Climate Solutions Package with a further $137.4 million for Practical Environment Restoration which includes funding for environmental protection projects, threatened species, the restoration of coastal land and waterways, and waste recycling.
This investment highlights the critical role of a strong economy in supporting positive environmental outcomes. Our commitments will reduce greenhouse gas emissions, ensure Australia meets its international climate targets and address local environmental challenges, while maintaining a strong economy.
At a time when Australia is seeing record levels of investment in renewable energy, with $25 billion committed across 18,800 MW of new wind and solar projects, the 2019-20 Budget assists our transition towards a low carbon economy and provides practical environmental solutions that will benefit future generations.
Climate Solutions Package:
The $3.5 billion Climate Solutions Package is the biggest single investment any Australian government has made in reducing emissions. This funding will help ensure we meet our Paris commitment to reduce emissions by 26-28 per cent below 2005 levels by 2030.
Its centrepiece is a $2.0 billion Climate Solutions Fund, which is expected to deliver more than 100 million tonnes of emissions reduction, over and above the almost 200 million tonnes being delivered through the successful Emissions Reduction Fund.
The Climate Solutions Package also includes significant investments in renewable energy to reduce emissions, while ensuring Australian households and businesses have lower power prices and reliable dispatchable power that keeps the lights on:

• $1.38 billion for Snowy 2.0 ensuring clean, reliable affordable power.
• $56.0 million for a new electricity interconnector to support Tasmania’s Battery of the Nation project.
• $61.2 million to support small businesses, local community groups, households and building owners to improve energy efficiency.
• $400,000 for the development of a National Electric Vehicle Strategy.

Cleaner Environment Package:
The Morrison Government’s $137.4 million for Practical Environment Restoration builds on the Government’s $1.1 billion National Landcare Program, which is already funding a range of environmental initiatives including Indigenous Protected Areas and Regional Land Partnerships that support wetland preservation, sustainable farming, threatened species and native habitats. The Practical Environment Restoration provides $100.0 million for the establishment of an Environment Restoration Fund that will support practical action on waste and recycling, the protection of rivers, waterways and coasts, and further support for our threatened and migratory native species.
It also includes $28.3 million of funding for a Communities Environment Program for community-led environment projects. The Government has also committed $9.2 million over four years towards the strengthening of biodiversity conservation in Queensland tropics through the control of the Yellow Crazy Ant population.
The 2019-20 Budget is also supporting the environment through:

• $25.0 million for the establishment of a National Centre for coasts, environment, climate research and education facility at Victoria’s Quarantine Station Precinct at Point Nepean.
• $25.0 million for the establishment of the Harry Butler Environmental Education Centre through Murdoch University, which will include an innovation hub developing sustainable environmental outcomes from economic development.
• $18.3 million to accelerate the eradication of red imported fire ants in Queensland.
• $34 million to grow stewardship and sustainable land management practices in agriculture.
• $32.1 million to extend the Bureau of Meteorology radar coverage and rain monitoring capability across northern NSW, Queensland and the Northern Territory.
• $21.4 million for infrastructure upgrades at key defence heritage sites around Sydney Harbour enabling community, educational and recreational use.

Since the Coalition came to Government in 2013, we have:

• Turned around a 755 million tonne emissions shortfall in meeting our 2020 international emissions reduction target to now be on track to overachieve that target by 367 million tonnes.
• Improved the outlook for the Great Barrier Reef, prompting UNESCO to remove the reef from its “in-danger” watchlist.
• Introduced protection for an additional 2.3 million square kilometres of Australia’s oceans.
• Appointed Australia’s first Threatened Species Commissioner and launched the Threatened Species Strategy which contains a commitment to turn around population trajectories for 20 mammals, 20 birds and 30 plants by 2020.

Key spending commitments since 2013 include:

• $2.55 billion in the Emissions Reduction Fund.
• More than $1.1 billion in Phase 2 of the National Landcare Program (2018-23).
• Over $1.2 billion to protect the Great Barrier Reef.
• Up to $216 million to upgrade Kakadu National Park and help the township of Jabiru transition to a tourism-based economy.
• Over $450 million over the next 10 years to upgrade Australia’s Antarctic research station network and supporting infrastructure.
• $1.35 billion in grant funding for more than 400 renewable energy projects through the Australian Renewable Energy Agency.
• $6.4 billion funding through the Clean Energy Finance Corporation in projects with a total value of more than $21 billion.

The Morrison Government’s plan for a stronger economy is delivering essential social services Australians depend on, with the 2019-20 Budget backing people with disability and their families and carers, keeping women and their children safe from the scourge of domestic violence and bringing down welfare dependence to record lows.
Our Government’s first priority is to keep Australians safe and that is why we committed $328 million over four years from 2018-19 for the Fourth Action Plan of the National Plan to Reduce Violence against Women and their Children 2010-2022 to fund prevention, response and recovery initiatives to keep women and their children safe. This is the largest ever Commonwealth contribution to the National Plan.
The Budget also extends the successful cashless debit card scheme and builds on the Morrison Government’s actions to get people off welfare and into work – actions which have reduced the level of working age welfare dependency to a record 30-year low.
The Morrison Government will provide an $84.3 million funding boost for new carer services being progressively rolled out to Australia’s 2.7 million carers in 2019. This represents one of the biggest reforms to carer services in more than a decade and includes new online educational resources, peer support, coaching and phone based counselling services. It also includes financial support packages valued at up to $3,000 to cover supports such as planned respite and participation in education and training. Additional funding will focus on young carers and ensuring appropriate support is available.
In line with our commitment to work towards the establishment of a Royal Commission, into Violence, Abuse, Neglect and Exploitation of People with Disability, the Morrison Government has committed $527.9 million over five years. This is subject to the finalisation of the terms of reference and consideration by the Governor-General. This includes $148.8 million to provide advocacy and support services to people with disability, their families, carers and supporters who may be impacted by the Royal Commission. All violence, abuse, neglect and exploitation of people with disability is abhorrent and the establishment of the Royal Commission builds on the Morrison Government’s strong actions to provide safe and quality services to people with disability through the establishment of the NDIS Quality and Safeguards Commission.
The Budget will provide more than 3.9 million Australians with a one-off Energy Assistance Payment to help with their next energy bill and cost of living expenses. The payment of $75 for singles and $125 for eligible couples will be exempt from income tax and will be paid automatically before the end of the current financial year, subject to the passage of legislation.
This Budget continues the Morrison Government’s strong record of investment in social services and support for vulnerable Australians including children, youth, Indigenous students, migrants and refugees, with measures including;

• $22.6 million to extend and expand the National Community Hubs Program and establish the National Youth Hubs Program across the country. These will provide valuable services and support for vulnerable groups such as migrant and refugee women and children to help them integrate and participate in their local communities. Thirty two additional National Community Hubs will be created, bringing the total number of funded Hubs to 100. A further 25 new Youth Hubs will be established.
• $36.4 million to help Indigenous students stay in boarding school, by ensuring that families of ABSTUDY recipients who need to live away from home to study continue to receive Family Tax Benefit until the end of Year 12.
• $14.1 million to establish three Social Impact Investment (SII) payment by outcome trials, funding organisations based on the social outcomes they achieve. Organisations will partner with the Government to participate in the trial design, implementation and outcome measurement. In addition, the Government has committed $5.0 million for the establishment of a Social Impact Investing Taskforce that will develop the next stage of the Government’s strategy for its role in this market, including how investments can provide solutions for entrenched disadvantage. This funding builds upon the Government’s 2017-18 and 2018-19 Budget commitments to support the SII market in Australia.
• $25.5 million towards the establishment of the National Centre for the Prevention of Child Sexual Abuse. Establishing the National Centre, as recommended by the Royal Commission into Institutional Responses to Child Sexual Abuse, highlights the importance the Government places on ensuring the safety of children and young people and its commitment to taking significant steps to prevent future abuse and supporting victims and survivors.

Improvements in technology that enable a more accurate reporting of income for Social Security income support recipients will achieve savings to the Budget and to taxpayers of $2.1 billion. Importantly, neither eligibility criteria nor maximum payment rates for Social Security income support recipients will change. Under this measure, income support recipients who are employed will report income that is received during the fortnight, rather than calculating and reporting gross earnings. This measure will reduce overpayments of income support payments, and produce a better user experience for income support recipients.
Minister Fletcher said the Morrison Government is committed to improving the wellbeing of individuals and families in Australian communities by guaranteeing the essential services on which they rely. The Budget delivers a range of initiatives to advance this goal.

A SAFER AND MORE SECURE AUSTRALIA
The safety and security of Australians is the Morrison Government’s number one priority.
The challenges and threats facing our nation become more and more complicated every day.
The 2019-20 Budget invests in building safer communities within secure borders while providing the resources to combat crime gangs, child exploitation, terrorism and foreign interference.
Only through our plan for a stronger economy can we ensure a safer and more secure Australia.
COUNTER TERRORISM
The dangers to Australia from terrorism continue to evolve. The tragic events in Christchurch last month show the need to remain vigilant to the threat of violent extremism.
In the last five years, there have been seven terror attacks in Australia and 15 major operations to disrupt planned attacks. Ninety-three people have been charged with terror-related offences.
In the coming years, as a nation, we face the dual risks of returning foreign fighters and the possible release from prison of those already convicted of planning or preparing terrorist acts in Australia.
To meet the ever present danger of terrorist attacks, spending to strengthen and enhance our intelligence and law enforcement agencies capacities will increase yearly over the next four years and total $381 million in that period.
This will enable the formation of additional investigation teams and adoption of new methods to meet the evolving terrorist threat, using the full suite of powers our Government has given our security agencies.
OPERATION SOVEREIGN BORDERS
The Coalition stopped the boats after the disastrous Labor years where open borders prevailed and allowed 50,000 illegal arrivals on more than 800 boats between 2008 and 2013, with at least 1200 avoidable deaths at sea.
With the boats stopped we were able to remove all children from detention and then close or put into contingency 19 detention centres.
However, particularly as a result of Labor’s Medevac legislation, the threat posed by people smugglers has not gone away, and as a nation we must remain vigilant. Operation Sovereign Borders continues its vital mission.
Australia will also continue the Regional Cooperation Arrangement in Indonesia, providing $39.5 million in assistance for our regional partners to deal with irregular people movements.
TACKLING THE SCOURGE OF GANGS AND DRUGS
Outlaw motorcycle gangs and organised criminal networks are behind the bulk of importation and trafficking of illegal drugs like ice, which wreak havoc across Australian communities.
As part of the Whole of Government Drug Strategy, the 2019-20 Budget provides Home Affairs agencies $152 million over four years to disrupt and reduce the supply of illicit drugs such as ice.
This allocation will revitalise the National Anti-Gangs Squad (NAGS), enhance Australian Border Force screening capabilities, support the new South Australian Joint Agency Ice Strike Team and extend the National Wastewater Drug Monitoring Program.
Funding of the NAGS will also enable joint-targeting of non-traditional and emerging criminal gangs, such as those responsible for crimes in South Eastern and Western Melbourne.
COUNTERING FOREIGN INTERFERENCE
We live in a time of unprecedented foreign intelligence activity against Australia. Covert foreign operations can have serious implications for Australia’s sovereignty by interfering with governmental and political processes.
Last year, the Government introduced ground-breaking legislation to deal with foreign influence and interference, and this Budget provides our security agencies the resources to investigate and disrupt foreign threats to our national sovereignty.
To meet this growing threat, $34.8 million has been allocated over the forward estimates to intelligence and law enforcement agencies.
Part of the funds will go to establish a Foreign Interference Threat Assessment Centre operated by the Australian Security Intelligence Organisation and the Australian Federal Police.
CHILD SEX OFFENDER REGISTER
Protection of our most vulnerable – our children – remains one of the highest priorities of the Morrison Government.
Last year’s Budget provided funding to initiate the Australian Centre to Combat Child Exploitation (ACCCE) in Brisbane.
This Budget provides $7.8 million over four years for the Australian Criminal Intelligence Commission to develop and implement a National Public Register of Child Sex Offenders, which will provide information on convicted offenders residing in the community.
SAFER COMMUNITIES
The Safer Communities Fund helps keep Australians safe through local crime prevention projects.
Following the terrorist atrocity in Christchurch the Prime Minister boosted to $55 million the funding available in the current Round Four grants.
This Budget will extend the Safer Communities Fund out to 2022-23 with $35.1 million dollars for a further round of grants (Round Five). This will boost efforts of councils and community organisations to address crime and anti-social behaviour, including through the installation of additional Closed Circuit television (CCTV) cameras and street lighting.
Schools and organisations with concerns associated with racial or religious intolerance can seek funding to improve their security.
More than $100 million has supported 340 safer community projects such as installation of CCTV, bollards and enhanced lighting of community spaces since the inception of the Safer Communities Fund in 2016.
NATURAL DISASTERS
Australia’s susceptibility to catastrophic natural disasters was frighteningly evident over recent months with massive flooding in the north and raging bushfires across most states.
To deliver initiatives to reduce disaster risk and improve risk information, the Government will provide $132.2 million over the next five years commencing in this Budget.
The Morrison Government will also establish an Emergency Response Fund from 1 October 2019, to fund natural disaster recovery and response initiatives above and beyond existing state and federal programs.
The Fund will be established as a Commonwealth Investment Fund under the management of the Future Fund Board of Guardians with an initial capital of approximately
$3.9 billion.
Up to $150 million per annum will be available from 2019-20 to 2023-24 from the Fund if the Government determines there is a need for additional support in parallel with existing natural disaster response programs, following a significant and catastrophic natural disaster.
The Fund will continue beyond 2023-24, with funding available annually for natural disaster recovery and response to reflect the five‑year average realised earnings of the Fund.

The Morrison Government’s number one priority is keeping Australians safe and secure. The 2019–20 Budget sees continued strong investment in Australia’s national security, with a particular focus on enhancing our regional security, building defence capability and supporting Australia’s sovereign defence industry.
The Budget maintains the Government’s commitment to grow the Defence budget to two per cent of GDP by 2020–21. The Government will allocate Defence $38.7 billion in 2019-20 and $175.8 billion to 2022-23.
REGIONAL AND GLOBAL SECURITY
As our security environment evolves, we are increasing Australia’s commitment to regional and global security to protect our interests at home and abroad.
Australia currently has around 2,300 Defence personnel deployed around the world, including on operations across the Middle East Region and Afghanistan.
Australia will continue to make a meaningful contribution to the US-led international Counter-Daesh coalition in Iraq. For this reason, Australia has around 400 personnel deployed as part of Operation OKRA.
The Government is committed to assisting the Government of Afghanistan to control its security and to make sure the nation never again becomes a safe-haven for terrorist networks. Operation HIGHROAD will continue to provide security, development assistance and capability building for Afghan institutions.
Defence will also continue to support other Government agencies to keep our borders safe and maintain the capability to support Australians affected by flooding, cyclones and other natural disasters.
The Australian Defence Force (ADF) contributes to the whole-of-government effort to protect our borders through Operation RESOLUTE. At any one time, up to 600 personnel at sea, in the air and on the land, are working to protect Australia’s borders and offshore maritime interests.
Defence is also playing a crucial part of the Morrison Government’s Pacific step-up. This includes:

• building Fiji’s Blackrock Peacekeeping Humanitarian Assistance and Disaster Relief Camp into a regional hub for police and peacekeeping training;
• working with the Solomon Islands and Vanuatu to increase security cooperation; and
• helping to develop the Papua New Guinea Defence Force’s Lombrum Naval Base in Manus Province and increase the inter-operability between our defence forces.

Defence will also increase the level of support to Southeast Asian countries including:

• increased frequency of visits and training opportunities for regional countries;
• supporting the training of regional military forces in Australia, including the
  $2.25 billion Australia–Singapore Military Training Initiative in Central and North Queensland;
• continuing to work cooperatively with regional countries to support their security, including through the Five Power Defence Arrangement; and
• assisting the Armed Forces of the Philippines with counter-terrorism training to counter Daesh’s influence in the Southern Philippines.

DELIVERING THE INTEGRATED INVESTMENT PROGRAM
The Government is increasing investment in advanced Defence capabilities, while boosting Australia’s sovereign defence industry and creating Australian jobs.
Over the next decade to 2028-29, the Government is investing more than $200 billion in Defence capabilities including:

• the continuous naval shipbuilding program, which is investing around
  $90 billion to build world class vessels, while also building a strong and viable Australian naval shipbuilding industry;
• continuing the purchase of the 5th generation F-35 Joint Strike Fighter and
  P-8A Poseidon maritime surveillance aircraft to provide Australia with regionally superior combat and maritime surveillance capabilities;
• continuing to upgrade our EA-18G Growler electronic attack aircraft and
  E-7A Wedgetail battlespace management aircraft; and
• building our policy and intelligence capabilities to ensure Australia has a deeper understanding of the world we live in.

DEFENCE CAPABILITY INVESTMENT
Since the release of the 2018-19 Budget, the Government has committed around
$47.5 billion to new capabilities including:

• signing the Strategic Partnering Agreement for the $50 billion Attack class submarine program, which will see 12 regionally superior submarines designed and built in Australia;
• nine Hunter class frigates, valued at $35 billion, to replace the Anzac class frigates from the late 2020s. The Hunter class will be a highly capable and lethal surface combat capability;
• a fleet of 211 new advanced Combat Reconnaissance Vehicles to protect our troops, with the majority to be manufactured by Australian workers in Queensland, using Australian steel;
• unmanned maritime patrol aircraft, with an initial investment valued at
  $1.4 billion to acquire the MQ-4C Triton through a cooperative program with the United States Navy;
• Integrated Soldier Systems, valued at up to $1 billion, that will deliver a broad range of equipment to ensure ADF personnel continue to meet emerging threats and that are less detectable, less susceptible to enemy attacks and able to fight longer and more effectively in challenging conditions; and
• the first tranche of the $1.1 billion Defence Fuel Transformation Program to deliver a safer, simpler and more assured Defence fuel network in partnership with industry.

NAVAL SHIPBUILDING PROGRAM
The Government’s $90 billion investment in continuous ship and submarine building is the largest regeneration of the Navy since the Second World War. Fifty-four naval ships will be built in Australia using Australian steel. This commitment will create thousands of jobs for decades to come.
Development of the Osborne North Shipyard in South Australia is continuing in preparation for the construction of the 12 new Attack class submarines.
The $535 million infrastructure redevelopment at Osborne South is on track to be completed in early 2020, in time for the start of Hunter class frigate prototyping. Nine Hunter class frigates will be built at the shipyard.
The first two Arafura class offshore patrol vessels (OPVs) are being built in existing facilities at Osborne South. Twelve OPVs will be built as part of the $3.6 billion investment to protect our borders and replace the existing patrol boat fleet. Ten OPVs will be built at Henderson in Western Australia. This project will also help sustain critical skills in Australia’s naval shipbuilding workforce.
Plans for the upgrade and development of facilities in WA to support the Hunter class frigates and the Arafura class offshore patrol vessels are progressing. Around $1.5 billion dollars will be spent on infrastructure in WA to support our new fleet.
Twenty-one Guardian class patrol boats are being built in WA to help our Pacific neighbours and Timor-Leste. Our $504 million investment will improve the security and prosperity of the region.
SUPPORTING DEFENCE INDUSTRY
The Government is making additional investments in our national sovereign industrial capacity, which will ensure we can respond to changes to Australia’s future security situation. The Government’s actions include:

• implementing the Defence Industry Skilling and Science, Technology, Engineering and Mathematics (STEM) Strategy, released by the Government in February 2019, which outlines support to help our defence industry to meet anticipated workforce and skills demand over the next decade;
• establishing the Defence Global Competitiveness Grant program, an initiative of the Defence Export Strategy (launched in January 2018), investing up to $4.1 million a year to support small to medium enterprises to overcome barriers in accessing export opportunities;
• establishing the Sovereign Industrial Capability Grant program, a key initiative of the Defence Industrial Capability Plan (launched in November 2018) to invest up to
  $17 million per year in grants to build the capacity and capability of Australian small to medium-sized enterprises to deliver operationally critical capability for Defence;
• providing advisory and facilitation services through the Centre for Defence Industry Capability for 550 small and medium enterprises, issuing over $3 million in grants and conducted stakeholder outreach events which have been delivered to more than 5,000 participants; and
• administering the Defence Innovation Hub which has received over 800 innovation proposals and awarded around $100 million in contracts and an additional 12 Special Notice contracts worth around $10 million focused on specific capability challenges.

ENHANCING CYBER SECURITY
The Government continues to invest in the Australian Signals Directorate, including the Australian Cyber Security Centre, to deliver intelligence, cyber security and offensive operations in support of the Australian Government and ADF.
As part of our continued investment to protect Government networks from hostile cyber compromise, and ensure the integrity of the 2019 Federal Election, the Government is investing in the creation of cyber security ‘SPRINT teams’ and a Cyber Security Response Fund.
LOCAL JOBS SUPPORTING THE DEFENCE ESTATE
The Government continues to invest in upgrading and expanding the Defence estate, comprising hundreds of bases, facilities and other sites right across Australia, particularly in regional communities.
The Government has commenced pilots of Local Industry Capability Plans for major Defence infrastructure projects to ensure local industry has the best opportunity to be involved in our unprecedented investment in Defence capability. Pilot projects include:

• the HMAS Cerberus Redevelopment Project in Victoria, a $465.6 million project;
• the Explosive Ordnance Logistics Reform Program, a $230.9 million project covering 12 Defence sites across Australia;
• the Shoalwater Bay Training Area Redevelopment in Queensland, an approximately $135 million infrastructure upgrade project; and
• a program of works worth approximately $112 million comprising the Townsville Field Training Area Mid-Term Refresh, RAAF Base Townsville Mid-Term Refresh and the HMAS Cairns Mid-Term Refresh in Queensland,

All of these investments and initiatives continue to ensure that we remain on track to implement the plans as set out in the 2016 Defence White Paper to keep Australia safe and secure, while maximising the involvement of Australian industry in our unprecedented capability investment.

The Liberal National Government will commit over $525 million to ensure Australia’s vocational education and training (VET) sector delivers the skills critical to the economy now and into the future.
The Government’s Delivering Skills for Today and Tomorrow package responds to the expert review into Australia’s VET sector led by the Hon Steven Joyce, which set out a vision for VET as a modern and flexible alternative to classroom-based learning. This Package will ensure Australians develop the skills they need to succeed in a changing workplace and will provide businesses (including those in rural and regional areas) with a pipeline of qualified workers they need to grow and prosper.
The Delivering Skills for Today and Tomorrow package will:

• Create up to 80,000 additional apprentices over five years in priority skill shortage areas through a new apprenticeship incentive ($156.3 million over four years from 2019-20 and an additional $108.0 million in 2023-24).
• Increase support provided to people with lower levels of education attainment to enable them to gain the skills they need to secure jobs now and into the future. This will include four pilots in remote Indigenous communities ($62.4 million).
• Address youth unemployment by providing 400 scholarships in regions throughout Australia ($8.2 million).
• Raise the profile of the VET sector and improve career advice to young Australians and workers transitioning careers by establishing a National Careers Institute and a National Careers Ambassador ($32.4 million).
• Develop skills in areas of need by building innovative partnerships between schools, employers and the VET sector through a new competitive grants program ($10.0 million).
• Promote a nation-wide approach to skills development, including through better identifying areas of skills shortages, and enhance the role of industry in designing training courses by establishing a National Skills Commission and piloting Skills Organisations across the country in the key areas of human services care and digital technologies including cyber security ($90.0 million).
• Provide greater job opportunities for young people in regions with high youth unemployment through ten Training Hubs that create better linkages between schools and local industry ($50.6 million).
• Streamline incentives for employers of apprentices and trainees and modernise the skills needs list ($44.0 million).

Minister for Small and Family Business, Skills and Vocational Education, Senator Michaelia Cash said the Liberal National Government will ensure Australia’s VET sector is accessible, high quality and responsive to industry needs.
“The Liberal National Government’s Delivering Skills for Today and Tomorrow package enhances VET as a direct pathway into Australia’s labour market – be it for their first job, for career progression, to transition to new industries or to create their own business,” Minister Cash said.
“It provides clear and reliable careers guidance to inform study choices, provides foundational skills so no one is left behind and will get more apprentices in jobs in areas of demand.
“Our new apprenticeship incentive will address priority areas of skills shortage for traditional trades including carpenters and plumbers. We are providing an additional $4,000 incentive payment to employers and $2,000 to apprentices.
“We are streamlining the process for employers to work out what support they are eligible for when engaging a new apprentice. Delivering Skills for Today and Tomorrowpackage simplifies the current Australian Apprenticeship Incentives Program by consolidating the more than 30 current payment categories into 14.
“These significant investments by the Liberal National Government are a significant part of our economic plan that will see 1.25 million jobs created over the next five years.
“I thank Steven Joyce and the members of the taskforce team for their enthusiasm, hard work and dedication to strengthening Australia’s VET system. I also thank the large number of stakeholders who contributed to this once-in-a-generation review”.
Additional information about the package is available at www.education.gov.au/skills-and-training-budget-overview-2019-20

The 2019-20 Budget is the Morrison Government’s next instalment of our plan to build a stronger economy and secure a better future for all Australians.
This Budget, which proposes lower taxes at the same time as increased funding for essential services like schools, hospitals and roads, is the foundation for a stronger economy and more jobs.
After more than a decade of deficits, this budget forecasts a surplus of $7.1 billion in 2019-20, a $55.5 billion turnaround from the deficit we inherited six years ago.
While the Budget forecasts a surplus it also delivers an additional $158 billion in income tax relief for hard-working Australians on top of the $144 billion in tax cuts locked into legislation last year. The Government will provide additional tax relief to hard-working Australians by more than doubling the low and middle income tax offset. Low- and middle-income earners will receive tax relief of up to $1,080 to support consumption growth and ease cost of living pressures. That’s up to $2,160 for a dual income family. Over 10 million Australians are estimated to benefit from the offset with around 4.5 million individuals estimated to receive the maximum benefit for the 2018-19 income year.
Taxpayers will be able to access the offset after they lodge their end of year tax returns from 1 July 2019, which is in just 13 weeks’ time.
The Government is helping Australian businesses grow by increasing and expanding access to the instant asset write-off. In total, around 3.4 million businesses will now be eligible to access the instant asset write-off. From tonight small and medium-sized businesses with an annual turnover of up to $50 million (up from $10 million currently) will be able to immediately deduct eligible assets costing up to $30,000 (up from $25,000) enabling them to grow their businesses and employ more Australians.
We will deliver record infrastructure investment of $100 billion over the next decade: busting congestion and getting families home sooner and safer, while investing in our future economic growth.
This includes $2 billion to help deliver fast rail from Geelong to Melbourne, an increase of $3 billion for the Urban Congestion Fund taking it to $4 billion, a $2.2 billion Road Safety Package and an additional $1 billion for the next phase of the Roads of Strategic Importance initiative.
Our economic plan delivers record health funding to guarantee Medicare, fund even more hospital services and provide greater access to more affordable medicines.
In this Budget, the Government is increasing total health funding from $81.8 billion in 2019-20 to $89.5 billion in 2022-23, up from $64 billion in 2013-14.
We will deliver record funding for schools and new measures to equip Australians with the skills they need.
Recurrent funding for schools will reach a record $19.9 billion in 2019, with average Commonwealth funding per student having increased from $3,755 in 2014 to $5,097 in 2019.
The Government will also invest more than $525 million to upgrade the vocational education and training sector including a package which will deliver up to 80,000 new apprentices.
Through strong economic management, we have successfully turned around Labor’s legacy of debt and deficit. By directing spending to where it’s most needed and most effective, average annual real growth in payments, expected to be 1.9 per cent, is the lowest of any government in 50 years.
Our plan for a stronger economy will put more money back in the pockets of Australians, create more jobs and guarantee essential services like Medicare, hospitals, schools and roads.

The Morrison Government is building a better tax system that rewards hard-working Australians and empowers small and medium-sized businesses to invest, grow and create more jobs.
As part of our plan for a stronger economy, we will provide tax relief to Australian taxpayers with immediate relief for low- and middle-income earners.
The Government will provide additional tax relief to hard-working Australians by more than doubling the low and middle income tax offset. Low- and middle-income earners will receive a benefit of up to $1,080 for low- and middle-income earners to support consumption growth and ease cost of living pressures. That’s up to $2,160 for a dual income family. Taxpayers will be able to access the offset after they lodge their end of year tax returns from 1 July 2019, which is in just 13 weeks’ time.
In 2022-23, we will lock in the benefits of low- and middle-income tax relief by increasing the top threshold of the 19 per cent tax bracket from $41,000 to $45,000 and by increasing the low income tax offset from $645 to $700.
And in 2024-25, the Government will reduce the 32.5 per cent tax rate to 30 per cent. This will be accompanied by the abolition of the 37 per cent tax bracket, which we have already legislated. This will provide permanently lower taxes and improve incentives for Australian taxpayers.
In 2024-25, 13.3 million taxpayers are projected to benefit from tax relief provided by this Government. It will mean 94 per cent of taxpayers are projected to pay a marginal tax rate of no more than 30 per cent in 2024-25.
We are also delivering additional tax relief for around 3.4 million small and medium-sized businesses to help them reinvest in their business, create jobs and grow.
In this year’s Budget we are increasing the instant asset write-off threshold to $30,000 and expanding access to medium-sized businesses with an annual turnover of less than $50 million. These changes will apply from 7:30pm (AEDT) on 2 April 2019 to 30 June 2020.
Around 22,000 additional businesses employing around 1.7 million workers will now be eligible to access the instant asset write-off. More than 350,000 businesses have already taken advantage of the instant asset write-off.
The Government is continuing to strengthen its efforts to maintain the integrity of Australia’s tax system by making sure multinationals pay their fair share of tax on their Australian profits.
In particular, the Government is extending funding for the ATO’s Tax Avoidance Taskforce until 30 June 2023. The extension is expected to raise a further $4.6 billion in liabilities over the next four years.
This is in addition to the $12.9 billion in tax liabilities the Government’s multinational tax avoidance initiatives have helped raise since July 2016.