Budget 2022: what we know so far

Tomorrow night the Morrison government will deliver its fourth federal budget, a chance to splash some cash around in time for an election where hip-pocket issues are set to dominate.

Like most budgets, many big-ticket items have been dropped to the media well ahead of Treasurer Josh Frydenberg’s big speech. Here are a few things we’ve learnt so far:

Cost of living

The flow-on effect from the war in Ukraine, the pandemic, and the devastating floods on the east coast have combined to push up cost-of-living pressures. To help ease the blow, the government is set to temporarily reduce the 44.2 cents a litre fuel excise for at least six months. 

There’s a one-off $250 cash bonus for pensioners and other people on income support in the works, and the first-homebuyer’s guarantee scheme, which helps people into the property market on a 5% deposit, will be expanded from 20,000 to 50,000 places.

But it’s still unclear whether the $1080 low- and middle-income tax offset will be extended for another year. 

Infrastructure

This morning the government announced a series of big infrastructure spending blitzes across the states and territories worth a total $17.9 billion. How good is Queensland? The sunshine state is set to win out, with $3.9 billion in spending including a rail line connecting Brisbane and the Sunshine Coast, and money earmarked for the 2032 Olympics. NSW and Victoria will get $3.3 billion each to expand road and rail infrastructure.

Also flagged is money for a couple of favourite National Party boondoggles in North Queensland. Deputy Prime Minister Barnaby Joyce has promised $483 million for Urannah Dam, a gift to the mining industry, despite questions about its business case. On Friday the government committed $5.4 billion to build Hells Gates Dam, despite no final business case or environmental approval.

Defence

With war in Ukraine and a political drive to wedge Labor on national security before the election, the government has been beating the Defence drum. Two weeks ago, Prime Minister Scott Morrison announced a massive $38 billion plan to boost the Defence workforce to more than 100,000 people by 2040.

And last week Defence Minister Peter Dutton committed $875 million towards upgrading military bases around the country.

There’s also a $4.3 billion plan for naval shipbuilding in Western Australia, and $10 billion to build a submarine base for the promised AUKUS nuclear boats somewhere in Queensland or NSW.

The government has committed $105 million to assisting the war in Ukraine.

Health

In a budget that will be about projecting a triumphant, post-pandemic future, expect far less explicit COVID talk in Frydenberg’s speech than his last two outings. A big hint is in the pre-budget health announcements. Over the past few days, we’ve heard of $58 million to support people with endometriosis, $475 million to subsidise the cost of cystic fibrosis drugs, and $206 million for youth mental health.

Closer to the COVID front, there’s a 10-year, $1.5 billion strategic partnership with Moderna to produce 100 million mRNA vaccine doses locally. 

Education

Over the weekend the government announced a $365 million package to help create another 35,000 apprenticeships.

Changes to the childcare subsidy will be brought forward from July to March at a cost of $224 million this financial year, and $670 million a year from then.

Beer

A 50% cut to the federal excise on tap beer was flagged two weeks ago. 

Editor’s Note: A previous version of this story referred to an additional $6.4 billion for independent schools. There has been no additional funding announcement for independent schools.