2024-2025 Federal Budget - Employment

Employment

Future Made in Australia - Making Australia a Renewable Energy Superpower 

The Government will provide an estimated $19.7 billion over ten years from 2024-25 to accelerate investment in Future Made in Australia priority industries, including renewable hydrogen, green metals, low-carbon liquid fuels, refining and processing of critical minerals and manufacturing of clean energy technologies including in solar and battery supply chains. Funding will catalyse clean energy supply chains and support Australia to become a renewable energy superpower. Funding includes:

• An estimated $8.0 billion over ten years from 2024-25 (and an average of $1.2 billion per year from 2034-35 to 2040-41) to support the production of renewable hydrogen, including:
  • A Hydrogen Production Tax Incentive from 2027-28 to 2040-41 to producers of renewable hydrogen to support the growth of a competitive hydrogen industry and Australia's decarbonisation, at an estimated cost to the budget of $6.7 billion over ten years from 2024-25 (and an average of $1.1 billion per year from 2034-35 to 2040-41)
  • $1.3 billion over ten years from 2024-25 (and an average of $151.6 million per year from 2034-35 to 2038-39) for an additional round of the Hydrogen Headstart program to bridge the green premium for early-mover renewable hydrogen projects
  • $17.1 million over four years from 2024-25 (and an additional $2.5 million in 2028-29) to deliver the 2024 National Hydrogen Strategy, including hydrogen infrastructure planning, social license and industry safety training and regulation.
• $1.7 billion over ten years from 2024-25 for the Future Made in Australia Innovation Fund, to be administered by the Australian Renewable Energy Agency, to support innovation, commercialisation, pilot and demonstration projects and early-stage development in priority sectors, including renewable hydrogen, green metals, low-carbon liquid fuels and clean energy technology manufacturing such as batteries.
• $20.9 million over four years from 2024-25 (and $1.2 million per year ongoing) to undertake further consultation on incentives to support the production of, and demand for, low-carbon liquid fuels, as well as the development of a low-carbon liquid fuels certification scheme through the Guarantee of Origin Scheme.

Budget Speech p 10
Budget Paper No 2 p 67
Budget Overview p 32
Regional Ministerial Budget Statement p 25
A Future Made in Australia p 4
Media Release

Housing Support

The Government will provide additional funding to build more homes for Australians sooner, invest in more housing-enabling infrastructure, train more construction workers and support social and affordable housing and homelessness services. Funding includes:

• subject to states and territories signing the new National Agreement on Social Housing and Homelessness:
  • $423.1 million over five years from 2024-25 in additional funding to support the provision of social housing and homelessness services by states and territories under a new National Agreement on Social Housing and Homelessness. The additional funding will increase annual funding under the new agreement to $1.8 billion per year from 2024-25, with over $9.28 billion provided to states and territories over the life of the agreement
  • $1.0 billion in 2023-24 for states and territories to support enabling infrastructure for new housing through a new Housing Support Program - Priority Works Stream
• $88.8 million over three years from 2024-25 to support 20,000 new fee-free training places, including increased access to pre-apprenticeship programs, in courses relevant to the construction sector and delivered through TAFEs and industry-registered training organisations.

Budget Speech p 6
Budget Paper No 2 p 74
Budget Overview p 22
Women's Budget Statement p 24
Regional Ministerial Budget Statement p 72
Media Release

Australian Universities Accord - Tertiary education system reforms

The Government will provide $1.1 billion over five years from 2023-24 (and an additional $2.7 billion from 2028-29 to 2034-35) for the first stage of reforms to Australia's tertiary education system in response to the Australian Universities Accord Final Report. These reforms will boost equity and access to higher education, progress tertiary harmonisation and will support a target of 80 per cent of the working-age population holding a tertiary qualification by 2050. Funding includes:

• $427.4 million over four years from 2024-25 (and an additional $1.2 billion from 2028-29 to 2034-35)to establish a new Commonwealth Prac Payment of $319.5 per week (benchmarked to the single Austudy rate) from 1 July 2025 for tertiary students undertaking supervised mandatory placements as part of their nursing (including midwifery), teaching or social work studies
• $350.3 million over four years from 2024-25 (and an additional $1.1 billion from 2028-29 to 2034-35)to expand access to university enabling and preparation programs through a new FEE-FREE Uni Ready Courses program from 1 January 2025
• $239.7 million over five years from 2023-24 (and an additional $250.5 million from 2028-29 to 2034-35) to limit the indexation of the Higher Education Loan Program (and other student loans) debt to the lower of either the Consumer Price Index or the Wage Price Index, effective from 1 June 2023, subject to the passage of legislation. This applies retrospectively and is estimated to reduce outstanding loans by around $3.0 billion.

The Government will also undertake a strategic examination of Australia's research and development system to strengthen its alignment with Australia's priorities and improve innovation and research and development outcomes. Higher education providers will also be required to direct a minimum of 40 per cent of their Student Services and Amenities Fee revenue to student-led organisations from 1 January 2025. Details of the following reforms to boost equity and access to higher education and to progress tertiary harmonisation will be announced once final consultations with relevant stakeholders have completed:

• The Australian Tertiary Education Commission which is intended to be established by 1 July 2025, will be responsible for tertiary education system stewardship, delivery of funding arrangements for higher education, ongoing tertiary harmonisation and data collection and reporting
• Managed growth funding for universities is intended to commence from 1 January 2026. This approach will more accurately reflect student demand, support efficient growth in places, and help Australia to reach its tertiary attainment target
• A needs-based funding system is intended to be implemented from 1 January 2026 to better support First Nations students, students from low socio-economic status backgrounds, students with disability and students studying in regional and remote Australia.

Budget Speech p 5
Budget Speech p 11
Budget Paper No 2 p 62
Budget Overview p 36
Women's Budget Statement p 51
Regional Ministerial Budget Statement p 39
Easing cost-of-living pressures p 2
Media Release

Commonwealth Government-Funded Paid Parental Leave - Enhancement

The Government will provide $1.1 billion over five years from 2023-24 (and $0.6 billion per year ongoing) to strengthen Australia's government-funded Paid Parental Leave (PPL) scheme and improve women's retirement outcomes. Funding includes:

• $1.1 billion over four years from 2024-25 (and $0.6 billion per year ongoing) to pay superannuation on Commonwealth government-funded PPL for births and adoptions on or after 1 July 2025. Eligible parents will receive an additional payment based on the Superannuation Guarantee (12 per cent of their PPL payments), as a contribution to their superannuation fund

This measure is expected to increase tax receipts by $155.0 million over two years from 2026-27. The cost of this measure will be partially met from within the existing resourcing of the Department of Social Services. This measure builds on the October 2022-23 Budget measure titled Boosting Parental Leave to Enhance Economic Security, Support and Flexibility for Australia's Families and 2023-24 MYEFO measure titled Paid Parental Leave Scheme - expansion and is consistent with the Government's proposed objective of superannuation to deliver income for a dignified retirement, alongside government support, in an equitable and sustainable way. This measure will help normalise parental leave as a workplace entitlement, like annual and sick leave, and reduce the impact of parental leave on retirement incomes.

Budget Paper No 2 p 166
Budget Overview p 53
Easing cost-of-living p 2
Media Release

Remote Jobs and Economic Development Program

The Government will provide $777.4 million over five years from 2023-24 (and $255.5 million per year ongoing) to establish the Remote Jobs and Economic Development Program, which will create 3,000 jobs in remote Australia and support income support recipients move into paid employment. Funding includes:

• $188.7 million over four years from 2024-25 (and $61.2 million per year ongoing) for a Community Jobs and Business Fund, to support community development and the creation of employment opportunities through funding capital, equipment and capacity building services
• $45.5 million over three years from 2024-25 to extend the current Community Development Program (CDP) provider arrangements from 31 October 2024 to 30 June 2025 - when a new remote employment services program will replace the current CDP provider arrangements - and provide supplementary funding to support the increased caseload following impacts of COVID-19, to provide continuity of support to participants who are not job-ready or able to commence employment under the Remote Jobs and Economic Development Program

The cost of this measure will be partially met by a reprioritisation of funding from the 2023-24 Budget measure titled Closing the Gap - further investment and within the existing resources of the National Indigenous Australians Agency. This measure builds on the 2023-24 Budget measure titled Closing the Gap - further investment.

Budget Paper No 2 p 162
Budget Overview p 54

Net Zero Economy

The Government will provide $399.1 million over five years from 2023-24 (and an additional $616.8 million from 2028-29 to 2034-35 and $93.4 million per year ongoing) in additional resourcing for the Net Zero Economy Authority (the Authority), the Department of Employment and Workplace Relations, and the Fair Work Commission to promote orderly and positive economic transformation associated with decarbonisation to ensure Australia, its regions and workers realise the benefits of the net zero economy. Funding includes:

• $209.3 million over four years from 2024-25 (and $53.3 million per year ongoing) to expand the Authority to coordinate policy and deliver across government, broker investments that create jobs in regions, and support workers affected by the net zero transition
• $134.2 million over four years from 2024-25 and $377.8 million over the medium term (and $40.1 million per year ongoing from 2035-36) to provide workforce transition support for impacted workers and the broader communities affected by the net zero transition
• $44.4 million over four years from 2024-25 to deliver the Energy Industry Jobs Plan, to assist employees impacted by the closure of relevant coal-and gas-fired power stations to access new employment by supporting job and skills matching and providing onboarding and early retirement incentives to employers
• $1.3 million over four years from 2024-25 for Treasury to develop and publish high-quality guidance on best practices for Australian businesses when developing net zero transition plans.

Budget Speech p 8
Budget Paper No 2 p 159
Budget Overview p 33
A Future Made in Australia p 5
Media Release

Australian Apprenticeships Incentive System - Further support

The Government will provide $265.1 million over four years from 2024-25 to adjust previously scheduled Phase Two Incentive System payments to provide further support for apprentices, trainees and their employers in priority occupations, while the Government undertakes the Strategic Review of the Australian Apprenticeships Incentive System. Under 2022-23 March Budget arrangements for the Australian Apprenticeships Incentive System, financial support to apprentices, trainees and their employers was scheduled to reduce from 1 July 2024, including for those in priority occupations, through the implementation of Phase Two settings. The measure will increase Phase Two Incentive System payments for apprentices in priority occupations from $3,000 to $5,000 and hiring incentives for priority occupation employers from $4,000 to $5,000 for 12 months from 1 July 2024.

Budget Paper No 2 p 90
Regional Ministerial Budget Statement p 41

Disability Employment Services Reform

The Government will provide $253.6 million over five years from 2023-24 (and $19.0 million per year ongoing) to reform employment services and support for people with disability. Funding includes:

• $227.6 million over five years from 2023-24 (and $11.4 million per year ongoing) to implement a new specialist disability employment program to replace the existing Disability Employment Services program by 1 July 2025
• $23.3 million over four years from 2024-25 (and $7.6 million per year ongoing) to establish a Disability Employment Centre of Excellence.

Budget Paper No 2 p 168
Budget Overview p 48
Women's Budget Statement p 57
Regional Ministerial Budget Statement p 91
Media Release

Employment Services Reform

The Government will provide $13.2 million over five years from 2023-24 (and savings of $36.9 million per year ongoing) for improvements to the employment services system and to support future reform. Funding includes:

• $68.6 million over five years from 2023-24 to increase resourcing for the Digital Services Contact Centre to support people using Workforce Australia Online services
• $32.1 million over four years from 2024-25 for the Real Jobs, Real Wages pilot providing tapered payments to employers to support wages for people at risk of long-term unemployment.

The cost of this measure will be partially met by reprioritising funding from within the existing Employment Services program, including:

• $58.8 million over five years from 2023-24 (and $14.0 million per year ongoing) from ceasing the Workforce Specialists initiative
• $53.9 million over four years from 2024-25 (and $17.7 million per year ongoing) from reducing credits to the Workforce Australia - Employment Fund by $100 for each new participant to Workforce Australia Provider Services

Budget Paper No 2 p 81
Regional Ministerial Budget Statement p 39
Media Release

Workplace Relations 

The Government will provide $111.8 million over four years from 2024-25 (and $12.4 million per year ongoing) to support the progression of the Government's workplace relations agenda. Funding includes:

• $60.0 million over four years from 2024-25 to increase the Productivity, Education and Training Fund to support practical activities by employer and worker representatives to boost workplace productivity and engage in tripartite cooperation. This will also support workplaces to implement policy changes such as the introduction of payday superannuation

The Government will also recalibrate the Fair Entitlements Guarantee Recovery Program to pursue unpaid superannuation entitlements owed by employers in liquidation or bankruptcy from 1 July 2024. This will achieve efficiencies of $13.0 million over four years from 2024-25 (and $29.9 million over the medium term) through an expected increase in tax receipts of $63.1 million over four years from 2024-25 (and $114.4 million over the medium term), with $44.4 million over four years from 2024-25 (and $96.9 million over the medium term) expected to be paid to superannuation funds. The Treasury manages Commonwealth payments to the states and territories.

Budget Paper No 2 p 95

Health Workforce

The Government will provide $116.2 million over five years from 2023-24 to strengthen and support the health workforce. Funding includes:

• $90.0 million over three years from 2023-24 to fund the implementation of the health-related recommendations of the Independent review of Australia's regulatory settings relating to overseas health practitioners (the Kruk Review) to grow and support the health workforce. This funding is a component of the $1.2 billion package of Strengthening Medicare measures agreed at National Cabinet in December 2023 and has been developed in consultation with the states and territories
• $17.4 million in 2024-25 to extend the General Practice Incentive Fund until 30 June 2025 to improve access to primary care in thin markets.

Budget Speech p 12
Budget Paper No 2 p 111
Budget Overview p 43, 46, 47
Media Release

Future Made in Australia - Workforce and Trade Partnerships for Renewable Energy Superpower Industries

The Government will provide $218.4 million over eight years from 2023-24 (and $1.3 million per year ongoing) to support a Future Made in Australia through the development of a skilled and diverse workforce and trade partnerships. Funding includes:

• $55.6 million over four years from 2024-25 to establish the Building Women's Careers program to drive structural and systemic change in work and training environments. The program will fund partnerships between training providers, community organisations, employers, and unions to improve women's access to flexible, safe and inclusive work and training opportunities in traditionally male-dominated industries of national priority, including clean energy sectors
• $10.0 million in 2025-26 to establish a National Hydrogen Technology Skills Training Centre, in partnership with the Victorian Government, to promote hydrogen workforce development to support the skilled workforce needs of the growing domestic hydrogen industry

The Government has already provided partial funding for this measure. The cost of this measure will be partially met through funding from the Strategic International Partnerships Investment Stream and savings identified in the Department of Industry, Science and Resources. Partial funding for this measure will be held in the Contingency Reserve pending the finalisation of a selection process for a delivery partner for the National Hydrogen Technology Skills Training Centre.

Budget Speech p 8
Budget Paper No 2 p 72
Budget Overview p 37
Regional Ministerial Budget Statement p 25
Media Release

Nuclear-Powered Submarine Program - Workforce and supply chain investments

The Government will provide $101.8 million over seven years from 2024-25 to continue to build the Australian industrial workforce required to support the delivery of Australia's conventionally-armed, nuclear-powered submarines. The cost of this measure will be met from within the existing resourcing of the Department of Defence and the Australian Submarine Agency. This measure builds on the 2023-24 Budget measure titled Nuclear-Powered Submarine Program - initial implementation and the 2023-24 MYEFO measure titled Nuclear-Powered Submarine Program - further implementation.

Budget Paper No 2 p 82

Migration - Mobility Arrangement for Talented Early-professionals Scheme (MATES) and extending the validity of the Business Visitor visa for Indian nationals

The Government will implement a new Mobility Arrangement for Talented Early-professionals Scheme (MATES) program for Indian nationals from 1 November 2024. MATES will provide a new mobility pathway for 3,000 Indian graduates and early career professionals (aged 18 to 30 years at the time of application), with knowledge and skills in targeted fields of study to live and work in Australia for up to two years. The visa will have a pre-application (ballot) charge of $25 and an application charge of $365, both of which will be indexed to the consumer price index in future years. This measure is part of the Australia-India Migration and Mobility Partnership Arrangement (MMPA). As part of the MMPA, the Government also lengthened the validity of the Visitor visa (subclass 600) Business Visitor stream for Indian nationals from up to three years to up to five years. This measure is estimated to increase receipts by $435.0 million and increase payments by $70.9 million over the 5 years from 2023-24.

Budget Paper No 2 p 7
Media Release

First Nations Prison to Employment Program

The Government will provide $76.2 million over five years from 2023-24 (and $18.7 million per year ongoing) to implement a new voluntary prison-to-employment transition program for First Nations people aged 15 years and over who are incarcerated with a known release date or are on remand. The program will be progressively rolled out from 1 July 2025. The new program will support the economic security of First Nations people by providing pre-release and post-release support services to assist them in reintegrating into their communities and preparing to enter or re-enter the labour market, and will:

• introduce and support a greater diversity of service providers, including First Nations organisations that have strong local connections and capability to deliver trauma-informed and culturally safe mentoring and assistance to First Nations people
• provide funding to support the National Indigenous Employment and Training Alliance to operate as a First Nations employment services peak body and help build the capacity of the Aboriginal community-controlled sector as they prepare for the new program
• establish a grant process to support small-scale prison-to-work projects that support job creation opportunities for First Nations participants.

This program will replace the Time to Work Employment Service program. The cost of this measure will be met from savings identified in the Employment and Workplace Relations portfolio.

Budget Speech p 15
Budget Paper No 2 p 93
Regional Ministerial Budget Statement p 41
Media Release

A Higher Rate of JobSeeker Payment for Participants with a Partial Capacity to Work (0-14 hours)

The Government will provide $41.2 million over five years from 2023-24 (and $7.0 million per year ongoing from 2028-29) to extend eligibility for the existing higher rate of JobSeeker payment to single recipients with a partial capacity to work of zero to 14 hours per week from 20 September 2024. The higher JobSeeker payment rate is currently provided to single recipients with dependent children and those aged 55 and over who have been on payment for nine continuous months or more.

Budget Speech p 15
Budget Paper No 2 p 164
Budget Overview p 55
Regional Ministerial Budget Statement p 93
Easing cost-of-living pressures p 2
Media Release

Engineered Stone Import Prohibition

The Government will provide $32.1 million over two years from 2024-25 to the Australian Border Force to enforce a legislated import prohibition on engineered stone products entering Australia, to support the state and territory ban on the use, supply, and manufacture of engineered stone which will take effect in most jurisdictions from 1 July 2024, with limited exemptions for certain legacy contracts. This measure is estimated to have a negligible impact on receipts from 2024-25.

Budget Paper No 2 p 93