Budget 2020-21 Analysis

As the consequences of the COVID-19 pandemic continue to hit hard, Australia is experiencing a significant downturn in economic activity with high levels of unemployment, underemployment and a strong decline in GDP. Household spending and fixed investment have fallen amid business shutdowns and job losses.

The Budget acknowledges that insufficient stimulus would result in a prolonged recession and that running a deficit comes second to economic recovery. The Budget predicts Australia’s deficit will reach $213.7 billion this year, falling to $66.9 billion by 2023-24, with net debt increasing to $703 billion, peaking at $966 billion in June 2024.

Unemployment is expected to rise, reaching 8% in the December quarter 2020 before falling to 6.5% in 2021-22. After declining by 3.75% this year, the rate of economic growth is expected to increase to 4.25% in 2021. Despite projected growth of 10% in the economy over the forward estimates, no real wage growth is forecast.

In our Pre-Budget submission, we called for a strong framework for long-term investment and strategically-directed stimulus measures in areas of national priority, where the investment would have the greatest impact on job creation and job protection.

The professional workforce - including STEM professionals - will play a crucial role in meeting the challenges of this pandemic and will be central to economic recovery, so we were looking for strong investment in the STEM workforce, science and R&D as part of the reconstruction efforts.

We called for investment in construction and infrastructure projects, as critical drivers of productivity and job creation – investment in civil infrastructure including road and rail projects, support for partnerships between the private and public sectors to rebuild after bushfires and floods, support for an advanced manufacturing industry and investment in residential and commercial construction.

Strategic investment in emerging knowledge-based industries like biotechnology, communications technologies and advanced manufacturing is also critical, as well as providing competitive advantages to established industries like agriculture, resources, and health care.

The 2020-21 Budget provides substantial tax cuts including $17.8 billion to bring forward planned personal income tax cuts and $31.6 billion in tax relief for business.

Significant investment of $14 billion has been provided for new and accelerated infrastructure projects. However the $1.5 billion provided for manufacturing is modest, considering this sector has an annual output of around $100 billion.

New investment in STEM and research in universities is welcome, but the scale was less than expected given the impacts and challenges of the COVID-19 pandemic in these areas. While the budget includes some measures to encourage the employment of young people, a comprehensive, long-term youth employment strategy is required.  

The response to childcare was disappointing given the vital role of childcare in supporting greater workforce participation, particularly by women. The scale of the response to aged care, which requires significant reform, and the lack of investment in social housing construction were also of concern.

Although the budget involves big spending, the level and mix of funding priorities remains contentious in terms of whether they will adequately shield the economy from job cuts, generate new jobs and protect the most vulnerable members of our community from the impact of the pandemic.

The budget papers are available here.
Infrastructure overview

In our Pre-Budget submission, we noted that construction and infrastructure projects would be a critical driver of productivity and called for investment in civil infrastructure, including road and rail projects, support for transitioning to value-added production through an advanced manufacturing industry and investment in commercial and residential construction. We also called for a shift in government procurement policies to ensure that lowest cost tenders are not over-emphasised at the expense of local jobs, local supply chains and capital investment in Australia.

So, what was in the Budget?
The infrastructure investment pipeline has been increased by $10 billion to $110 billion and more than $12.5 billion in additional infrastructure has been provided as part of the JobMaker Plan. Since the start of the COVID-19 pandemic, an additional $14 billion will be invested in new and accelerated infrastructure projects over the next four years.

Roads and Rail

Road and Rail Projects

The budget has funded priority road and rail projects including:
  • $3 billion over the next four years for "shovel ready" infrastructure projects – $2 billion for road safety projects and $1 billion for local roads and community projects.
  • $7.5 billion funding for national transport infrastructure has been brought forward to this year’s Budget.
  • $5.63 million for the Northern Australia Infrastructure Facility, plus $120 million for the Carpentaria Highway Upgrade, $46.6 million for the Northern Territory National Network Highway Upgrades and $22.9 million for the Stuart Highway Upgrade at Coolalinga.
  • $1.1 billion towards priority road and rail projects in Victoria, including $320 million for the Shepparton Rail Line Upgrade, $292 million for Barwon Heads Road and $208 million for stage 2 of the Warrnambool Rail Upgrade.
  • $359.6 million for priority road projects in Tasmania, which includes $150 million for the Hobart to Sorell Corridor, Midway Point Causeway and Sorell Causeway and $72 million for the Tasman Roads Package for various highway upgrades.
  • A further $1.3 billion in funding for priority road and rail projects in Queensland, including $750 million for the Coomera Connector Stage 1 (Coomera to Nerang), $201.2 million for the Bruce Highway and $112 million for the Centenary Bridge Upgrade.
  • An additional $2.7 billion to road and rail projects in NSW including funding for $603 million for the New England Highway – Singleton Bypass and Bolivia Hill Upgrade, $591.7 million for the Newell Highway Upgrade and $490.6 million for the Coffs Harbour Bypass.
  • $155.3 million in funding for priority road projects in the Australian Capital Territory including $87.5 million for the Molonglo River Bridge and $50.0 million for the Canberra – Southwest Corridor Upgrade package.
  • $625.2 million to priority road and rail projects in South Australia including $200 million for the Hahndorf Township Improvements and Access Upgrade, $136.0 million for the Princes Highway Corridor and $136.0 million for the Main South Road Duplication Stage 2 — Aldinga to Sellicks Beach.
  • $1.1 billion over four years towards Western Australia’s priority road and rail projects, including $227.1 million to Metronet for High Capacity Signalling and the Morley-Ellenbrook Line and $87.5 million for the Reid Highway Interchanges at West Swan Road.

Energy

Gas

  • $52.9 million over four years from 2020-21 to support a gas-fired recovery and strengthen the economy by taking steps to unlock gas supply, deliver an efficient pipeline and transportation market, and empower gas customers.

    This includes:

  • $28.3 million over three years from 2020-21 to establish five Strategic Basin Plans to accelerate gas development in priority geological basins.
  • $13.7 million over four years from 2020-21 to continue the Commonwealth Scientific and Industrial Research Organisation’s Gas Industry Social and Environmental Research Alliance
  • 10.9 million in 2020-21 to implement a sequenced plan to reset the East Coast gas market, including developing a National Gas Infrastructure Plan, work to establish Wallumbilla as the Australian Gas Hub, improving pipeline regulation and empowering gas customers.
  • $70.2 million over five years to activate Australia’s first regional hydrogen export hub and facilitate research collaborations and international supply chain studies to boost Australia’s hydrogen industry.

    •  

    Technology Investment

    The Technology Investment Roadmap will see $18 billion of investments over the next decade to lower emissions, lower costs and create jobs.
    • Up to $250 million for three projects: the Marinus Link, Project Energy Connect, and VNI West.
    • Creation of an Australian Gas Hub at a cost of $52.9 million.
    Hydrogen energy supply chain pilot project

    • $12.5 million in a pilot project to demonstrate the feasibility of a hydrogen energy supply chain (HESC) based on gasification of brown coal to produce liquid hydrogen for use in Japan.
    Western Australia Energy and Emissions Reduction Deal

    • $28.5 million to support two key projects in Western Australia to deliver reliable and affordable energy solutions, emissions reductions and support economic recovery (the South West Interconnected System Big Battery project and the Western Australia based microgrids program).
    Regional Microgrids

    • $67.1 million in grants to support new microgrids in regional and remote communities to deliver affordable and reliable power.
    Cybersecurity in energy

    • $4.9 million over two years to improve cyber security in the energy sector and prepare government and industry for future threats.
    Other

    • $50 million investment in the Carbon Capture Use and Storage Development Fund to pilot carbon capture projects to cut emissions from large industrial facilities
    • $74.5 million over four years to enable Australian consumers and businesses to adopt future fuel and vehicle technologies in Australia, including hydrogen, electric, and bio-fuelled vehicles
    • $45.2 million to progress reforms to make it easier and cheaper for business to participate in the Emissions Reduction Fund, and to support investment in offshore clean energy generation and transmission.

    Recycling infrastructure

    Recycling infrastructure overview

    • $59.7 million to improve recycling outcomes by addressing critical infrastructure gaps in Australia’s waste management.
    • $249.6 million over four years to modernise recycling infrastructure, reduce waste and recycle more within Australia.
    • $190 million Recycling Modernisation Fund.
    • $47.4 million to protect oceans and restore their health.

    Agriculture

    Agriculture overview

    • $317 million to the International Freight Assistance Mechanism.
    • $51 million in grants to help exporters meet the costs of exploring new markets and growing in overseas markets.
    • $156 million over four years to drought recovery
    • $10 million of fees waived in the fishing industry
    • $25 million to haul salvaged logs of time wood that survived the bushfires to timber mills and to ensure that the wood is properly stored.
    • $17.4 million to expand the Relocation Assistance to Take Up a Job Program.
    Horticulture Netting Trial Scheme

    • $23.6 million to support primary producers of horticultural crops to purchase and install protective netting to reduce the impact of adverse weather conditions and animal predation, and to reduce the water usage on those farms.
    Pest and disease preparedness and response programs

    • $61.9 million to assist in the eradication of exotic animal, plant and environment pests and diseases.

    Water

    National water grid

    • $2 billion across ten years for priority water infrastructure investments program to support agricultural output and increase water security.
    Water Murray-Darling Basin

    • $40 million to develop business cases for constraints measures and implementation.
    • $65 million to implement water reform in the Murray-Darling Basin.
    Rural water use and infrastructure program

    • $144 million to improve the efficiency and productivity of rural water management and usage, deliver substantial and lasting water returns to the environment, secure a long term sustainable future for irrigated agriculture, implement supply measures and improve the health of wetlands and freshwater ecosystems.
    Future Drought Fund

    • $20 million for Farm Business Resilience.
    • $10 million for the Regional Drought Resilience Planning to identify and guide innovative actions to build resilience to future droughts.
    Great Artesian Basin Sustainability initiative

    • $7.3 million funding to continue the capping of uncontrolled bores and piping open bore drains to reduce water loss and recover groundwater pressure.
    Lindenow Valley water security scheme

    • $9 million to deliver grants to eligible Irrigators within the Lindenow Valley of East Gippsland Victoria, for the construction of on-farm water storage facilities, or bores and pumping facilities, to increase water security and improve resilience to drought.
    National Water Infrastructure Development Fund

    • $178.9 million of capital to support long-term regional economic growth and development by providing secure and affordable water through the construction of economically viable water infrastructure.
    • $58.4 million of funding for feasibility studies.
    Water for Fodder program

    • $5 million funding for South Australia to produce 40 gigalitres of water from the Adelaide Desalination Plant.
    On-farm Emergency Water Infrastructure Rebate

    • $61.9 million for one-off rebates to eligible primary producers to improve water infrastructure.

    Environment

    COVID-19 World and National Heritage

    • $32.7 million to support the domestic tourism industry and regional communities.
    Disaster risk reduction

    • $83.5 million in 2020/21 and $130.5 million over five years to support resilience to disasters triggered by natural hazards.
    Environmental assessment systems upgrade

    • $3.6 million to establish interoperable environmental assessment systems.
    Environment restoration fund

    • $4.3 million to protect Australia’s water, soil, plants and animals.
    Management of established pest and weeds

    • $4.6 million to deliver wild dog exclusion fencing in SA and support the states to deliver projects that better manage established pest animals and weeds.
    Manufacturing R&D

    With business spending in manufacturing R&D well down over the past decade, a stronger focus on science and R&D in the manufacturing strategy is required.

    In our Budget submission, we called for strategic investment in advanced manufacturing - as well as providing competitive advantages to established industries like agriculture and resources. While the Modern Manufacturing Strategy received around $1.5 billion in new funding, this investment is modest for a sector that has an annual output of around $100 billion.

    Modern Manufacturing Initiative
    The $1.3 billion Modern Manufacturing Initiative (MMI) will target areas where Australia has an existing competitive advantage or interest and will help those areas scale up, collaborate, and commercialise.

    The six priority areas are: resources technology and critical minerals processing, food and beverage, medical products, recycling and clean energy, defence and space.

    The MMI is based on a co-funding model for large manufacturing projects and will focus on three streams:
    1. Manufacturing Collaboration to support business-to-business and business-to-research collaboration with funding to develop economies of scale. The Commonwealth will fund up to a third of the project’s cost
    2. Manufacturing Translation to convert ideas into commercial outcomes
    3. Manufacturing Integration to support the integration of manufacturers into local and international supply chains and markets. Funding of up to 50 per cent of the project’s cost will be available.
    Manufacturing Modernisation Fund (MMF)

    The Manufacturing Modernisation Fund will be expanded with $52.8 million funding with the aim of addressing the competitiveness of manufacturers in priority sectors. The second round of MMF funding will look to addressing barriers to growth and innovation and will co-fund capital investment technology upgrades and help develop and maintain a skilled workforce through jobs growth and upskilling. Applicants will need to meet the criteria of job growth, upskilling of existing employees and alignment with the National Manufacturing Priorities
    Supply Chain Resilience Initiative

    The COVID-19 pandemic has revealed some of the weaknesses of supply chains. In response, the Government has announced a $107.2 million Supply Chain Resilience Initiative to support projects that address supply chain vulnerabilities.
    STEM and Research

    In our Pre-Budget submission, we noted that a vibrant and sustainable STEM workforce is essential to virtually every goal we have as a nation – including rebuilding the Australian economy as we move through the stages of the pandemic and that we need to Increase R&D investment. We need investment in research capacity to ensure that Australia strengthens its research base rather than allowing it to contract because of the pandemic.

    So, what was in the Budget?
    The crucial role of STEM in the nation’s economic recovery was recognised though the scale of investment was less than expected.
    • A $1 billion boost to university research in 2020-21 through the Research Support Program
    • $459.2 million over four years to the CSIRO to fill the budget hole in commercial revenue the nation’s science agency will be able to generate amid the pandemic
    • Dropping proposed cuts to the R&D tax incentive, keeping $2 billion in the nation’s R&D system over the next four years
    • $5.8 million this year for the Department of Education, Skills and Employment for a scoping study of options to accelerate the translation and commercialisation of research
    • $47 million more than previously estimated in Cooperative Research Centre funding
    • $25.1 million over 5 years from 2020-21 to create a Women in STEM Industry Cadetship program, and $35.9 million over 5 years for the Boosting Female Founders initiative to support women-founded start-ups.
    • A $41 million research and development program to support regionally based industries
    • $27 million to boost curriculum resources and STEM education for primary and high school students.
    • $56.4 million over three years to the Australian Nuclear Science and Technology Organisation to support nuclear medicine production, critical radioactive waste management and nuclear decommissioning activities, and asset management.
    • $25 million over four years to establish a coasts, environment and climate science research and education centre at Point Nepean, Victoria. The centre will be led by Monash University and the University of Melbourne and include an interdisciplinary research facility on marine and coastal ecosystems, climate science and environmental management.
    • $15.1 million over three years to expand Questacon’s education and outreach activities.
    • $3.4 million over four years to support women in STEM through the SAGE Initiative and a digital National Awareness Raising Initiative led by the Women in STEM Ambassador Professor Lisa Harvey Smith.
    • $19.5 million over four years to establish a Space Infrastructure Fund.
    • $5 million over two years to build the Stawell Underground Physics Laboratory to allow the University of Melbourne to join the global research effort to understand dark matter.
    • Funding of $2.9 million over three years to facilitate national leadership in agricultural innovation.
    • $3.6 million over two years from 2019-20 to trial a National Innovation Games through which students will work together to solve innovation, technology and/or digital challenges set by a corporate sponsor.
    • $0.5 million over five years (and $0.1 million ongoing from 2023-24) to establish an Australian Antarctic Science Council that would support reform initiatives announced as part of the Government’s response to the Australian Antarctic Science Program Governance Review 2017
    Savings measures affecting STEM were also announced in the Budget including:
    • Abolishing the $3.9 billion Education Investment Fund and using the capital to establish a new Emergency Response Fund.
    • Savings of $48.9 million over five years from 2018-19 from the Entrepreneurs’ Programme and the Industry Growth Centres Initiative. 
    • Reductions in indexation of science and research programs over the forward estimates resulting in savings of $345 million to university research funding through the research support program.
    Skills investment

    In our Pre-Budget submission, we called for investment in keeping professionals' technical and enterprise skills up-to-date by committing to career-long learning and more modular forms of training and re-skilling to ensure an agile and well-trained workforce to lead us through economic recovery. We noted that governments, businesses, and education institutions will need to work together to help their people adjust to the 'new normal' labour market and drive a skills agenda that will provide for upskilling and career-long learning.
    Education and training

    The impact of COVID-19 on university students and staff has been profound. Job losses in universities are estimated to be 21,000 within the next six months.

    In our Pre-Budget submission, we called for education and training investment to lift productivity and create jobs, new companies and new industries. We need the tertiary education system positioned to respond to industry needs and to effectively build the nation's STEM skills base. The level of ongoing investment in university education will determine the size and impact of future dividends paid back into the economy.

    Budget initiatives in education include:
    • $51 billion in education to help drive Australia’s recovery from COVID-19 by guaranteeing essential services, including $550.3 million for additional university places and short courses and $1 billion for university research.
    • $1 billion universities to drive the discovery of new products, ideas and innovations to power our post COVID-19 recovery.
    • $550.3 million for additional university places and short courses, which includes $298.5 million for an additional 12,000 university places for Australian students in 2021, $251.8 million for additional 50,000 short course places in 2021 and $40 million to fund universities to start projects in their local communities that drive the national interest, including greater collaboration with industry.
    • $22.5 billion to support state education services, including $21.9 billion in Quality Schools funding and $544.8 million through National Partnership payments.
    • $21.9 billion in Quality Schools funding to government and non-government schools in all states.
    • $3.418 billion for the Department of Education, Skills and Employment including early learning and access to childcare ($85.068 million), higher quality education international education, and international quality research ($245.985 million), access to skills and training ($2.275 billion) and policies and programs to assist job seekers to meet employer’s needs ($811.520 million).
    Young workers overview

    • $4 billion JobMaker Hiring Credit for employers who hire eligible employees aged 16-35. Businesses will get an additional $200 a week for hiring an employee aged between 16 and 29, and $100 a week for a 30- to 35-year-old worker. Only young employees who have received JobSeeker, Youth Allowance or Parenting Payment for one of the three months before being hired will be subsidised under the scheme. New hirees must work for at least 20 hours a week. There is no requirement that the employee be engaged on a permanent basis, despite the payment being available for up to a year.
    • $1.2 billion to support up to 100,000 new apprentices and trainees by paying a 50 per cent wage subsidy, up to a cap of $7,000 per quarter, for commencing apprentices and trainees. Program applies to all new apprentices and trainees across all industries but will end in 12 months.
    • $1 billion JobTrainer Fund to create up to 340,000 free or low-cost training places for school leavers and job seekers.
    Defence and security overview

    • $1.7 billion for Cybersecurity over the next decade, which includes $1.4 billion to enhance the capabilities of the Australian Signals Directorate and Cyber Security Centre.

      This includes:

    • $366.7 million over the forward estimates to the Australian Signals Directorate
    • $470 million investment in the cyber security workforce, with the creation of over 500 new jobs in the ASD.
    • $1 billion in planned defence spending brought forward. This includes accelerating investments in Australian Defence Force capability development projects, infrastructure and national estate works programs.
    Staffing levels

    • Staffing Levels - In 2020-21, staffing levels have increased beyond 2006-07 staffing cap levels as the Government implements the COVID-19 Economic Recovery Plan and delivers essential services to all Australians. The staffing increases are only temporary, and more clarity is required about the levels of funding for public service and public sector employment beyond 2021-22.
    Public broadcasting overview

    The Government has not committed further funding to support our public broadcasters.
    IT- Digital business plan overview

    In our Pre-Budget submission, we flagged the IT sector as key driver for rebuilding a competitive Australian economy and called for upskilling and reskilling of Australia's tech workforce.

    The Budget includes the following commitments:
    • $800 million Digital Business Plan targeted at digital transformation
    • 26.2 million to enable small businesses to access the benefits of digital technology and to look after themselves and their businesses as they manage the stress of the COVID-19 crisis.
    Business measures overview

    • Business depreciable asset deduction - businesses with a turnover of up to $5 billion can deduct the cost of eligible depreciable assets acquired between 6 October 2020 and 30 June 2022.
    • Tax loss ‘carry back’ benefits - small businesses will be able to offset current losses against previously paid taxes to boost cash flows.
    • Small business start-up tax breaks - $105 million on ten tax breaks for operators with turnover between $10 million and $50 million. They include no fringe benefits tax on car parking, phones or laptops, simpler trading stock rules and easier PAYG instalments.
    • Fringe benefit tax break for training - retraining or reskilling workers who face redundancy will be exempt from fringe benefits tax.
    • Capital Gains Tax - the government is to waive CGT currently paid on the value of a home with a granny flat.
    Personal income tax cuts overview

    Stage 2 tax cuts worth $17.8 billion have been brought forward by two years, backdated to 1 July 2020. This stage involves:
    • increasing the top threshold of the 19 per cent bracket from $37,000 to $45,000; and
    • increasing the top threshold of the 32.5 per cent bracket from $90,000 to $120,000.
    • increasing the low-income tax offset (LITO) from $445 to $700. The increased LITO will be withdrawn at a rate of 5 cents per dollar between taxable incomes of $37,500 and $45,000. The LITO will then be withdrawn at a rate of 1.5 cents per dollar between taxable incomes of $45,000 and $66,667.
    Safety Net, Healthcare, Aged Care, Disability Services overview

    In our Pre-Budget submission, we called for JobKeeper to be extended ensuring anomalies were fixed, for investment in aged care, disability services and mental health services in response to issues arising as a result of the pandemic and for the Government to re-consider the level of JobSeeker.
    Safety Net

    • The JobKeeper scheme has not been extended beyond the end of March 2021 and no permanent increase in JobSeeker was indicated beyond the end of the temporary coronavirus boost at the end of March 2021.
    • $15.6 billion in additional spending on the JobKeeper Payment considering the additional restrictions in place for Victoria and announced changes to eligibility.
    • $2.6 billion for 2 additional $250 support payments to aged pensioners and other eligible recipients.
    Health

    • $1.1 billion for COVID-19 related healthcare, including $711.7 million to extend MBS item funding for detection and $170.8 million to extend funding of dedicated COVID-19 clinics.
    • $1.1 billion in additional funding to continue paying private hospitals to supplement public hospital capacity and fund state hospitals.
    • Access to COVID-19 vaccines and consumables - $1.7 billion over two years for agreements to access the University of Oxford/AstraZeneca vaccine and the University of Queensland/CSL Limited vaccine with local manufacturing provided by CSL Limited/Seqirus Australia. A further $24.7 million will be provided for the supply and storage of vital consumables, such as needles and syringes, to ensure vaccines can be administered once available.
    Mental health

    • $100.8 million over two years from 2020-21 to ensure people with a mental health care plan can access up to 10 additional Medicare-subsidised individual psychological therapy sessions (doubling sessions from 10 to 20).
    • In response to the second wave in Victoria, a further $47.3 million for digital and telephone counselling, which will provide access to 24/7 services particularly for young people and vulnerable populations.
    • $76 million investment in mental health (telehealth) for bushfire trauma recovery
    • $102 million over 4 years for Veterans’ mental health.
    Aged care

    • 245 million to extend the COVID-19 Supporting Resident Care Supplement to support aged care providers to meet additional costs associated with COVID-19, including infection control training
    • $205.1 million for the Workforce Retention Bonus Payments for aged care workers, in recognition of the challenges they face delivering frontline aged care services (gross of tax receipts)
    • $103.4 million to extend the Aged Care COVID-19 preparedness measure which supports aged care providers experiencing a COVID-19 outbreak, including funding extra surge staff for emergency deployment
    • $1.6 billion for 23,000 additional home care packages
    Disability services

    • $798.8 million for the National Disability Insurance Agency and NDIS Quality and Safeguards Commission
    • $7.5 million to provide a Worker Mobility Reduction Payment to support disability residential service providers in Victoria to continue to provide critical services to people with disability.
    Industrial relations overview

    In our Pre-Budget submission, we called for safeguarding livelihoods and the creation of secure jobs.

    We need a vision for Australia's future that strengthens job and income security and protects hard-won employment rights and entitlements. We need economic recovery measures that create jobs, develop the workforce, build skills, and recognise and reward employees for their contribution to economic growth.

    Industrial relations reforms in the name of greater ‘flexibility’ that result in more precarious employment and cuts to wages, conditions and rights are not the answer.

    It is critical that:

    • organisations understand that those who revitalise their workforces for the challenges and opportunities ahead will emerge strongest from the COVID-19 crisis; and
    • that people are part of the solution and the key to future prosperity – not costs to be cut.
    Gender equity overview

    The COVID-19 pandemic has renewed the ongoing discussion of diversity in STEM with concerns that the health crisis will further entrench or widen the under-representation of women and other groups in STEM fields.

    Among other things, we called for affordable and geographically accessible childcare as the key determinant of workforce participation for women.

    Budget announcements included $240.4 million through the Women’s Economic Security Statement including implementing the key findings from the AHRC report on sexual harassment. The Government included only limited additional support for childcare, by extending targeted funding for childcare services in Victoria following the end of the national Transition Package arrangements on 27 September 2020.

    2020 measures set out in the statement include:
    • Expanding the Women’s Leadership and Development Program, including creating a new Women’s Job Creation priority area
    • Boosting existing priority areas, including to support women experiencing family, domestic and sexual violence to return to and retain work
    • Expanding proven projects, including the Academy for Enterprising Girls and Women Building Australia programs Mid-Career Checkpoint Boosting Female Founders Initiative (2018 and 2020 measure)
    • Australia’s Future Women in STEM
    • Women in STEM Cadetship and Advanced Apprenticeships
    • Changes to ParentsNext
    • Respect@Work, implementing key findings from AHRC report
    • Domestic violence measures - the Government is providing $4.8 million to give continued effect to its ban on direct cross examinations and $1.8 million to criminalise Family Court order breaches plus funding to extend the Help is Here advertising campaign.
    The Budget also included $3.4 million new funding to support women in STEM, including the Science in Australia Gender Equity (SAGE) initiative led by the Australian Academy of Science and the Australian Academy of Technology and Engineering.
    Indigenous Australians overview

    Budget measures announced include:
    • $46.5 million under the new National Agreement on Closing the Gap to partner with Indigenous organisations to expand service delivery, which is considered inadequate by many Aboriginal Community Controlled Organisations given that targets under the agreement have doubled.
    • Indigenous Business Australia will receive an additional investment of $150 million to extend the Indigenous Home Ownership Program.
    Professionals Australia acknowledgs that in preparing the analysis we used several sources including Barton Deakin, the AICD and ACTU.