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Chief Exec. Women welcome Budget focus on care economy and women’s participation

BUDGET REACTION – The Chief Executive Women (CEW) group has welcomed Federal Budget measures aimed at unlocking women’s workforce participation, to address Australia’s economic challenges by removing barriers for women and families. 

The 2024-25 Federal Budget has confirmed funding for several of CEW’s policy asks, including: 

  • $1.1 billion over four years from 2024-25 and $623 million per year from 2028-29 to extend paid superannuation to include Commonwealth paid parental leave;  
  • Commitment to fund pay increases for aged care and early childhood workers in line with Fair Work Commission processes;
  • $1.6 billion over 11 years to provide paid work placements for teaching, nursing, midwifery and social work students;
  • $925 million over five years to establish the Leaving Violence Program;  
  • Adapting the Stage 3 Tax Cuts to address gendered outcomes;
  • To support gender procurement processes, women-owned and led businesses will be able to self-nominate via the Voluntary Commonwealth Supplier Registration process through AusTender;
  • $55.6 million over four years for the Building Women’s Careers program to advance women in key male dominated industries, including construction, clean energy, advanced manufacturing and digital technology;
  • $38.2 million over eight years to support a thriving, skilled and diverse STEM workforce; and
  • Delivery of the Working for Women National Strategy.

CEW president Susan Lloyd-Hurwitz said investment in the care economy was a logical budget response that would benefit many Australian families and the economy more broadly. 

“Commitments to continue expanding paid parental leave and to increase pay for our vital care workforces, signals the importance of the care economy to all Australians, both now and in the future,” Ms Lloyd-Hurwitz said. 

For consecutive years, CEW has called for intentional investment in gender equality and women’s workforce participation as the best way to boost productivity and build a modern economy.

“We know that working women are significantly overrepresented in the care sector, and we also know there are skills shortages in many areas like aged care and early childhood education. The latest budget measures will go some way to improving economic security for women and attract more people to these essential professions,” Ms Lloyd-Hurwitz said.

CEW research has found that 1 million additional full-time skilled workers could be unlocked in Australia if women were engaged in paid work at the same rate as men. According to Deloitte, $11 billion would be added to Australia’s GDP by increasing women’s working hours by just 2 percent.

CEW has also called for the Federal Government to relax the Child Care Subsidy Activity Test, increase JobSeeker payments and prioritise women’s safety.

Ms Lloyd-Hurwitz said, “it was disappointing the budget did not act on advice of the Productivity Commission and the ACCC to relax the Child Card Subsidy Activity Test.

“Ten government reports in the last four years have told us that the Activity Test is not working, and that the system is overly complex and inoperable for many parents.

“We continue to call for at least three days of quality early childhood education, regardless of parents’ activity,” she said.

Research by Impact Economics and Policy found that abolishing the test altogether could increase GDP by up to $4.5 billion a year through increased workforce participation of mothers.

“An investment in universal access to early childhood education for the benefit of all would unlock an existing workforce, uplift productivity, support families with cost-of-living pressures, and give our children the best start in life,” Ms Lloyd-Hurwitz said. 

“The Budget does not comprehensively address the circumstances of women living in poverty in Australia, which is concerning. JobSeeker payments sit below the poverty line at around just 43 percent of minimum wage, trapping the most vulnerable Australians in poverty instead of enabling them into work.

“Women’s safety and ability to escape gendered violence is intertwined with their economic security, and we also know that more needs to be done to fund the services supporting women escaping violence.

“We strongly urge the government to make these priorities for future policy and budgets.” 

A complete list of CEW’s 2025 budget recommendations can be found here.

www.cew.org.au

 

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Budget ‘could have done more’ to encourage small businesses say CPAs

BUDGET REACTION – Small business owners across Australia will be feeling a bit underwhelmed by Treasurer Jim Chalmers’ 2024 Federal Budget, according to leading accounting body CPA Australia.

In his speech, Dr Chalmers spoke of wanting small businesses to share the big opportunities ahead – and certified practising accountants' body CPA Australia agreed in principle.

The problem was that while CPA Australia saw positivity in the small business statement highlighting several measures, this Federal Budget focused start-up opportunities on its Industry Growth Fund, limiting the initiatives that would encourage more younger Aussies to start or buy a business.

CPA Australia found the Budget outlined some cost-of-living relief for Australian households, but it only included a small amount of energy cost relief for struggling small businesses.

“Fuel costs, power bills and various other inflationary pressures are having a hugely detrimental impact on many small businesses,” CPA Australia chief executive officer, Chris Freeland said. 

“Small businesses – most of which already have very thin margins – desperately needed a budget that would help alleviate the cost pressures they are facing on a daily basis,” Mr Freeland said.

“While the emphasis on relieving pressures on household finances was expected, a more business-centric budget would benefit all Australians as small businesses are significant contributors to the economy and job creation.”

Many small and medium sized businesses are also feeling overwhelmed by red tape at a time when they need to focus on running their business, not complying with new obligations.

Mr Freeland welcomed the one year extension to the instant asset write off for smaller businesses. However, a more permanent solution would provide the certainty business owners desire.

“While instant write-offs and subsidies for power bills are welcomed, the truth is small business needs more support, particularly those in energy-intensive sectors,” Mr Freeland said.

“The Budget confirmed investments in supporting businesses in distress and those facing mental health issues, but there is little in the way of additional funding for programs aimed at preventing businesses getting into trouble in the first place and enhancing business owners’ skills to help these businesses grow.”

Research from CPA Australia shows Australian small businesses trail behind most countries in the Asia-Pacific region when it comes to business innovation, use of new technology and are ultimately less likely to experience growth.

“Government support for initiatives like cyber-security will help Australian small businesses catch up to their regional counterparts,” Mr Freeland said. “The rebranded myGov will also bring greater security when interacting with government. These are all steps in the right direction.

“It’s positive that the government continues to talk up the need to build a more productive and dynamic economy. There are many policies essential to achieving those objectives that are in addition to the government’s industry and competition policies,” Mr Freeland said.

“Take for instance, the relatively low proportion of Australians under 40 owning their own business. Our annual small business survey shows that increasing the proportion of young Australians starting their own business or acquiring an existing business has a positive influence on business growth and productivity.

“The range of targeted small business support in this budget makes sense, but a more comprehensive look at the sector is needed.

“We look forward to the proposed National Small Business Strategy that will help business, community and government work together to nurture and grow our economy.”

Key Budget points made by the CPAs were:

  • Investment incentives were made for select industries, but there was no shot in the arm for small business.
  • Energy relief was welcome, but unlikely to make much impact for most small businesses.
  • The Federal Government should incentivise more young business owners and greater innovation.
  • Extra funding to help businesses in distress and mental health was a very necessary investment.

 

www.cpaaustralia.com.au

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Ombudsman says Budget makes some progress on small business threats

BUDGET REACTION – The Australian Small Business and Family Enterprise Ombudsman,  Bruce Billson said the 2024-25 Federal Budget did offer targeted measures to help small and family business deal with current pain points and headwinds.

“Small and family businesses facing punishing input costs that are squeezing margins will welcome the modest energy bill relief of $325,” Mr Billson said. “Every saving helps the small businesses who are doing it tough in our community. 

“Matching last year’s Budget, the money will be deducted from the power bills of one million eligible small businesses as part of a cost-of-living relief package.

“Small and family businesses will be relieved by the decision to extend the instant asset write-off for a further 12 months for businesses with a turnover of up to $10 million, allowing them to deduct $20,000 for eligible assets,” Mr Billson said.

“But we note the instant asset write-off measure announced in last year’s budget has still not been passed into law with just six weeks left of this financial year, creating some uncertainty for small businesses.

“This uncertainty has highlighted the benefits of greater predictability to support business planning and investment, reflected by small business groups calling for it to be made permanent.

“Particularly important is the $7.7 million over two years to extend the funding for mental health support through the New Access for Small Business Owners program created by Beyond Blue and $3.1 million over two years for the Small Business Debt Hotline delivered by Financial Counselling Australia,” Mr Billson said.

“We have seen a 20 percent increase in calls to our helplines over the past year from small businesses struggling to manage their debts. It is vitally important that small business owners take time to focus on their own mental and financial wellbeing and these free services are provided by people who understand the realities of running your own business and can offer practical help.

“The Budget also expands the scope of existing funding for ASBFEO to support small business in a dispute with the Tax Office to include unrepresented business dealing with a broader range of business disputes, including those involving franchising, and provides funding to review the adequacy and effectiveness of dispute resolution tools available to ASBFEO’s assistance service.

“There is also $20.5 million for the Fair Work Ombudsman to help small business employers comply with the increasingly complex workplace laws and $10 million to assist smaller employers with administering the revised paid parental leave scheme.

“We welcome $8.6 million a year for key regulators to enforce mandatory codes that oblige telecommunications, banking and digital platform service providers to do more to guard against the harm caused by scams that are hurting too many small businesses,” Mr Billson said.

“The Budget also includes additional funding to improve the uptake of e-invoicing, the effectiveness of the payment times reporting framework and implementation of franchise reforms.

“While income tax cuts will drive demand, the budget forecasts that overall economic growth will be weaker, which will concern small and family businesses who have been doing it tough.

“Sluggish growth combined with persistently poor productivity, tight labour markets, supply chain challenges, and the lagging effects of high inflation, plus 13 interest rate rises, are taking their toll on small and family businesses,” Mr Billson said.

“We need to shift the mindset from minimising headwinds to maximising the ‘wind in the sails’ of our hard-working small and family businesses.

“Some 43 percent of small businesses were not profitable in the last full tax year. Three-quarters of self-employed people, for whom their business is their full-time livelihood, take home less than average total weekly earnings.

“It is often said that small business is the engine room of the economy. We must ensure that small and family business can fire on all cylinders – not have a cylinder taken out.

“We need to get the risk and reward balance right, ensuring small business and entrepreneurship is a really attractive option for people, then create a supportive ecosystem to give enterprising people the best chance to be successful.”

The Government’s small business statement can be found at www.budget.gov.au

 

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TCA highlights innovation and tech workforce as critical to Australian economy

BUDGET REACTION – The Tech Council of Australia (TCA) has welcomed Federal Budget initiatives designed to boost investment in innovative industries, improve the tech workforce pipeline and accelerate digital transformation of government. However, the TCA said there was “still more to do to lift Australia’s productivity growth”.

“Australia’s tech sector is vital to the future of our economy and job creation, which is why we’re pleased to see some important new investments announced in this Budget,” TCA acting CEO Ryan Black said.

“The Federal Government has injected funding into some major priorities for the tech sector, including AI, migration, digital ID and tech workforce diversity, while also making some substantial investments in future high-tech industries.

“We welcome measures to invest in safe and responsible AI, while continuing to encourage the government to develop a comprehensive plan to drive AI development and adoption across the economy,” Mr Black said.

“Importantly, this year’s Budget builds on existing flagship initiatives like the National Reconstruction Fund and Industry Growth Program, through which we hope to see funding roll out to the tech sector as soon as possible this year.”
 
The Tech Council has been a strong advocate of the Federal Government’s migration strategy and singled out investment in migration reform, as well as other workforce initiatives such as improving diversity in STEM, as major priorities in its pre-Budget submission this year.
 
“Australian tech businesses continue to face challenges with attracting the best and brightest talent to our shores due to an outdated, slow and unresponsive migration system,” Mr Black said.
 
“The government’s migration reforms, including the announcement of a refreshed National Innovation Visa as part of the permanent migration program, will give tech companies more ability to scale, innovate and compete on the global stage.
 
“The additional $38.2 million to improve diversity in STEM is a meaningful investment in building a more diverse and inclusive tech workforce,” he said.

“We look forward to continuing to work with the government on the design and implementation of a digital apprenticeships model, which will open pathways for more Australians into the tech sector.”
 
The Federal Budget also includes some major new investments to support innovation and high-tech industries through the Made in Australia initiative and other programs.
 
“We agree there’s an important role for government in driving more co-investment into innovation and advanced industries where Australia has clear strengths,” Mr Black said.

“This is about investing in the future of our economy and our security, while ensuring we continue to create more high-skilled, high-paid jobs.

“Private investment will continue to do much of the heavy lifting here, which is why we’re pleased to see the Government prioritise FIRB (Foreign Investment Review Board) reforms and a commitment to develop a ‘single front door’ to attract and facilitate major investment proposals in Australia.
 
“Quantum (computing) is an area where we have huge potential to create a multibillion-dollar industry and thousands of jobs. Following the significant investment in this Budget, we urge the government to move quickly to inject more direct funding in Australia’s quantum businesses and research organisations to take advantage of our world-leading quantum capabilities.”
 
The Budget includes significant commitments to accelerate the digital transformation of government, including through digital ID and myGov enhancements.   
 
“Australia has made significant progress on digital transformation, but it’s important that government service delivery keeps pace with growing consumer expectations,” Mr Black said. 
 
“Digital ID and digital credentials are crucial for enhancing privacy, security, productivity and customer experience.
 
“More funding for myGov is also important to ensure a world-class and inclusive experience for all Australians and reflect its status as critical national infrastructure.”
 
The Tech Council also supports the additional funding provided in the Budget for the Department of Defence’s export controls function, which will help ensure new reforms are implemented as efficiently as possible for industry.
 
“We will continue to review the details of the Budget and engage with our members on the announcements from the government to understand the full implications for the tech sector,” Mr Black said.

www.techcouncil.com.au

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HESTA welcomes funding for super on paid parental leave but reform needed for super system

BUDGET REACTION – HESTA has welcomed key measures in the latest Federal Budget, including funding to pay super on the Commonwealth Parental Leave Pay scheme, cost-of-living relief, and support to encourage investment in Australia’s energy transition.

HESTA CEO Debby Blakey said the 2024-25 Budget was good news for women, with measures to improve their retirement outcomes, increase wages in female-dominated industries and ease cost-of-living pressures.

“Many of our members are typically lower paid and facing increased pressure on household budgets as the cost of basic necessities has increased,” Ms Blakey said.

“Cost-of-living relief measures are welcome, and it’s fantastic to see the long-awaited allocation of funding for paying super on paid parental leave. This is a great investment in the financial future of women across Australia that will narrow the gender super gap, all the while sending a clear message that unpaid caring work is valued.” 

Following over a decade of advocacy from HESTA and others, the Federal Government in March this year announced super will be paid on the Commonwealth Parental Leave Pay Scheme from July 1, 2025.

Ms Blakey said for members still working, the stage three tax cuts, due also to come into effect on July 1, would ease the pressure on household budgets. For those in retirement, Ms Blakey also welcomed the announcement that the government would freeze deeming rates at current levels for another year, benefiting members accessing the age pension.

The tax changes, however, brought into focus the need for the more equitable targeting of superannuation tax concessions to help boost retirement savings for women and lower-income earners.

Ms Blakey said increasing the maximum income eligibility for the Low-Income Super Tax Offset (LISTO) from $37,000 per annum to the top of the second income tax threshold, and aligning the offset with the Super Guarantee, was a non-inflationary measure that would help make a difference to the retirement savings of women and low-income earners.

“It’s unfair low-income earners, many of whom are women, continue to pay more tax on their super contributions than their wages. That’s why we want to see the LISTO updated to reflect current tax and super settings,” Ms Blakey said.

“Reform to pay super on paid parental leave was a fantastic step forward for women’s financial security in retirement, but there’s still work to do to close the gender super gap and create a fairer super system for everyone.”

Ms Blakey also welcomed the Federal Budget’s focus on supporting Australia’s energy transition. The government has committed $22.7 billion over the next decade with a focus on new industries including renewable hydrogen, critical minerals processing, green metals, low-carbon liquid fuels and cleaner energy manufacturing.

“We need to accelerate the transition to clean energy and away from fossil fuels, as this can help mitigate climate change-related risks to our members’ retirement savings, and create new investment opportunities,” she said.

“The nationwide exploration of future-facing commodities, so vital for the energy transition, is a crucial step towards scaling up mining operations, strengthening supply chains, and helping Australia meet its net zero carbon emissions target.”

Budget funding to jump-start large decarbonisation projects was also welcomed, with HESTA having already committed to investing 10 percent of its portfolio in climate solutions by 2030.

Ms Blakey also commended Budget measures to support HESTA members, who are predominately women in health and community services.

These included funding provisions for the aged care and early childhood education wage increases, more flexibility for carers, and $320-a-week ‘prac payment’ for nursing, teaching, midwifery and social work students.

“HESTA members are mainly women who spend their lives providing critical care for communities in typically lower-paid roles such as nurses, midwives and aged care and early childhood education professionals, and often take unpaid time away from work to look after others,” Ms Blakey said.

“These professionals already face significant hurdles in achieving financial security in retirement, so it’s encouraging to see this year’s Budget provide targeted cost-of-living relief and support for many of our members.”

www.hesta.com.au

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Budget was a missed opportunity for rural health equity says National Rural Health Alliance

BUDGET REACTION – The Federal Budget has failed to address the ongoing health care inequity between rural and urban Australia according to the National Rural Health Alliance.

“The Budget falls short of our expectations,” National Rural Health Alliance chairperson, Nicole O’Reilly said. “It is disheartening to observe the government's lack of responsiveness to rural voices and its failure to commit to comprehensive reforms that would offer sustainable and long-term benefits for rural communities.”

The further an Australian lives from an urban centre, the lower their life expectancy. That is a fact raised often by the National Rural Health Alliance.

Ms O’Reilly said rural people are also twice as likely to die from preventable illness. Rural men are 2.5 times and women 2.8 times more likely to die from potentially avoidable causes than those in urban areas. 

She said many rural people had no access to primary healthcare services within an hour’s drive from their home. They use Medicare up to 50 percent less than those in cities, showing that people would rather not make the long journey or wait long hours to access health care somewhere else. As a result, the burden of disease in remote areas is 1.4 times than that of major cities.

“Evidence is clear that per-person spending on healthcare is not equitable,” Ms O’Reilly said. “We know from the Evidence base for additional investment in rural health in Australia (report) that each person in rural and remote Australia is missing out on nearly $850 per year of healthcare access equating to a total annual rural health underspend of $6.5 billion.

“Funding could have enabled rural Australians to access health and medical services in their local communities. We call on the government to make a better commitment at the next opportunity to ensure that our rural communities are looked after,” Ms O’Reilly said.

“The National Rural Health Alliance welcomes the commitment to support rural training opportunities. The establishment of the Charles Darwin University Menzies Medical Program which aims to educate home grown doctors is vital for growing the next generation of rural doctors. We acknowledge the new Commonwealth Prac Payment and the opportunity it will provide to support students to experience rural based clinical placements.

“We are also pleased to see the Royal Flying Doctors Service supported with top up finding to deal with the increasing costs of service delivery of vital services they provide to rural communities. But their model is only one that addresses the vast variety of health care needs across rural and remote Australia. There are many struggling rural and remote primary health care services that are on the brink of closure and need support and significant reform.

“There is much more to be done to address the inequity in health care outcomes for rural and remote Australians,” Ms O’Reilly said.

She said the National Rural Health Alliance (the Alliance) comprises 51 national organisations committed to improving the health and wellbeing of the over 7 million people in rural and remote Australia. Our diverse membership includes representation from the Aboriginal and Torres Strait Islander health sector, health professional organisations, health service providers, health educators and students.

www.ruralhealth.org.au

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Export tourism wins ongoing funding to rebuild China visitor market

BUDGET REACTION – ATEC today welcomed the Federal Government’s Budget announcement reinstating funding to support and improve the Approved Destination Status (ADS) scheme.

ATEC has been calling on the Federal Government to re-fund and refocus the ADS scheme which was key to Australia's success in growing the Chinese visitor market over two decades.

The retention of Tourism Australia funding, critical to the ongoing rebuild of the inbound holiday maker market, is also welcomed.

“ATEC welcomes the government’s commitment to supporting existing funding levels for Tourism Australia and its investment in promoting Australia,” ATEC managing director Peter Shelley said. 

“Moving forward we will look for increased funding to ensure Australia remains competitive in the global tourism marketplace.”  

This year’s Federal Budget has allocated $8.1 million over four years to rebuild the China ADS scheme, which was defunded and put on hold during the pandemic.  More than 670,000 Chinese holiday makers delivered over $3.3bn in spending in 2019. 

“ATEC has been advocating for the reinstatement and refresh of this important program since the re-establishment of visitors from China last year and we are pleased to see this funding back in the budget,” Mr Shelley said. 

“We see an opportunity for the China ADS program to be modernised to strengthen service delivery and to focus on consumer driven, quality group tour offerings. This budget allocation will enable us to achieve these changes with the security of ongoing forward funding for the first time.” 

Mr Shelley said allocations for the Export Market Development Grant scheme have been retained with the addition of $10.9m for the ‘Go Global Toolkit’ to support new exporters, including tourism exporters, to grow their markets. 

“We congratulate Minister (Don) Farrell for his strong advocacy for our industry and the support he has given in securing the ADS for our tourism exporters.” 

www.atec.com.au

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