Australia's

Economic Plan

We’re taking the next step

Helping business take the next step

Our Economic Plan helps Australian businesses as we move forward from the pandemic. During this time, Australia outperformed other major advanced economies. And there are now 260,000 more people in work than before COVID.

Our plan delivers:

  • Tax cuts
  • Training for apprentices
  • Instant asset write-off for eligible business assets

Support for
BUSINESSES & EMPLOYERS

We’re providing tax incentives so you can grow and invest in your business and create more jobs.

TAX REFUNDS FOR LOSSES AGAINST PRIOR YEAR PROFITS

We're continuing to help companies with turnover up to $5 billion to offset tax losses incurred from 2019‑20 to 2022‑23 against previous profits and tax paid in or after 2018‑19.

TEMPORARY FULL EXPENSING EXTENSION

We’re extending the temporary full expensing of eligible depreciable assets for businesses with turnover up to $5 billion, to 30 June 2023. This extension will enable businesses experiencing COVID‑19 related supply disruptions, or considering investing in projects requiring longer planning times, to take advantage of the incentives.

ENCOURAGING AUSTRALIAN INNOVATION

We're encouraging investment in Australian medical and biotech technologies by introducing a patent box. The patent box will reduce taxes on income derived from new medical and biotechnology patents, which will incentivise the development and retention of new patents. The patent box will also encourage businesses to undertake their R&D in Australia.

BOOSTING APPRENTICESHIP COMMENCEMENTS WAGE SUBSIDY

We’re providing an additional $2.7 billion will extend the Boosting Apprenticeship Commencements program. Businesses or Group Training Organisations that engage an Australian Apprentice between 5 October 2020 and 31 March 2022 may be eligible for a subsidy of 50 per cent of wages paid. There is no cap on the number of eligible trainees/apprentices

We’re accelerating reforms and investments to help businesses adopt digital technologies, lower the costs of doing business and allow you to choose how you interact with your customers and shareholders.

DIGITAL ECONOMY STRATEGY

We’re investing in the policy settings and infrastructure to support Australian businesses and workers to adopt and benefit from digital technologies.

CONSUMER DATA RIGHT

We’re expanding and accelerating the roll out of the Consumer Data Right across the economy. This will provide individuals and businesses with greater access to their consumer data and assist them to get better deals.

HELPING SMALL AND MEDIUM BUSINESSES TO BUILD DIGITAL CAPABILITIES

We’re helping Small and Medium Enterprises (SMEs) to work and do business in new ways, increasing profit and saving time.

INCENTIVES FOR BUSINESSES TO GROW INVESTMENT IN DIGITAL TECHNOLOGIES

We’re delivering tax incentives for businesses to stimulate investment in digital technologies to enhance their productivity and grow and create jobs.

We’re making it easier for business to invest, create jobs,
respond quickly to challenges and seize opportunities.

Cutting Red Tape initiative

We’ll be streamlining and digitising regulatory processes, saving businesses time and money.

New markets for our exports

Growing Australia’s export markets through diversification. $87.7 million to help farmers diversify and increase their exports.

Export Market Development Grants program which provides support to small and medium sized enterprises establishing or expanding their export business.

Supporting SME access to credit

Building on the SME Guarantee Scheme, the SME Recovery Loan Scheme is supporting the economic recovery and providing continued assistance to SMEs dealing with the economic impacts of the coronavirus crisis by increasing lenders’ ability to provide credit. The SME Recovery Loan Scheme has been extended through to 30 June 2022 with a guarantee of 50 per cent.

We’re delivering the infrastructure Australia needs, supporting jobs now and into the future and helping build Australia’s way back from the COVID‑19 pandemic

Infrastructure investment

The Australian Government is committing an additional $2.3 billion over 10 years for priority infrastructure projects across Australia This is in addition to the $15.2 billion announced at the 2021-22 Budget and forms part of the Government’s $110 billion 10-year infrastructure pipeline. This investment will support the economic recovery and improve urban and regional rail and roads, freight rail and public transport systems.

Local roads and community infrastructure program

The Australian Government provided an additional $1 billion in the 2021-22 Budget for the Local Roads and Community Infrastructure program to support local councils across Australia deliver priority local road and community infrastructure projects. This brings the total Australian Government commitment to the program to $2.5 billion commitment and will support local community jobs.

We’re committed to securing Australia’s electricity, fuel and gas supplies to keep prices low, create new jobs and support local industries.

SECURING ELECTRICITY SUPPLY AND LOWER PRICES

We’re maintaining low electricity prices by working with industry and the states to deliver accelerated electricity projects, including up to $215.4 million to support investment in new dispatchable generation and deliver affordable and reliable power for consumers in the nation’s electricity markets.

SNOWY 2.0 CONSTRUCTION

We’re delivering construction of Snowy 2.0 which will deliver an additional 2000 megawatts of fast-start energy storage with capacity to supply 500,000 households and support continued large-scale entry of intermittent renewable energy. This will create 5,000 jobs in the Snowy Mountains region, lifting economic activity, boosting local business, and improving local infrastructure.

NATIONAL GAS INFRASTRUCTURE PLAN

We’re strengthening our economy and identifying priority projects, ensuring gas is delivered when and where it is needed.

New funding of $58.6 million will support key gas infrastructure projects, unlock new gas supply and empower gas customers.

FUEL SECURITY PLAN

We’re increasing the resilience of the economy to international fuel supply shocks and helping secure jobs in fuel-centric industries.

We’re also backing local oil refineries, which are essential to Australia’s long term fuel security. This includes the introduction of a production payment.

We’re creating new opportunities for Australia’s construction industry
and boosting jobs by supporting housing supply.

First Home Loan Deposit Scheme

We’re funding an additional 10,000 places under the First Home Loan Deposit Scheme to support jobs in the residential construction industry.

FUNDING FOR LOW‑COST FINANCE FROM THE NATIONAL HOUSING FINANCE AND INVESTMENT CORPORATION

We’re providing low-cost finance to eligible applicants, including community housing providers, to help build more affordable housing and encourage residential construction.

EXTENDING THE NEW HOME GUARANTEE

We’re funding a further 10,000 places under the New Home Guarantee to 30 June 2022, for eligible first home buyers building or purchasing a new home, to support jobs in the residential construction industry.

We’re supporting Australian industries by creating high value jobs, improving our competitiveness, and ensuring we have access to the essential products needed to keep us secure and resilient.

Modern Manufacturing Strategy

We’re helping Australian manufacturing scale-up, become more competitive and build more resilient supply chains. Including:

  • The $1.3 billion Modern Manufacturing Initiative to support translating research into new products.
  • The $107.2 million Supply Chain Resilience Initiative to address critical supply chain vulnerabilities.
  • A further $55.2 million for a second round of the Manufacturing Modernisation Fund.
  • And $18.8 million in seed funding for key projects for the Industry Growth Centres.

CONTINUING SUPPORT FOR AVIATION

We’re setting Australia’s aviation industry on a course to recovery, with:

  • A $30 million rebate program to support aviation operators to install critical safety-boosting technology.
  • A further $4 million to extend the Women in the Aviation Industry Initiative.
  • The $32.6 million Emerging Aviation Technology Partnerships Program.
  • The Regional Airline Network Support program until March 31 2022.
  • Up to $29 million in grants under the Regional Airports Program.
  • A further $15 million in grants to upgrade remote and very remote aerodromes.

Supporting the arts industry

We’re supporting Australia’s cultural and creative sector in response to COVID‑19. This includes:

  • The $59 million Arts Sustainability Fund.
  • A second round of the $20 million Supporting Cinemas’ Retention Endurance and Enhancement of Neighbourhoods (SCREEN) Fund.
  • Extension of the $50 million Temporary Interruption Fund.
  • An additional $20 million to Support Act to help deliver relief and mental health support to artists, crew and music and live performance worker.

These measures are part of the Government’s broader Creative Economy COVID Support Package, now at over $475 million.

CONTINUING SUPPORT FOR TOURISM INDUSTRIES

We’re also supporting Australian Exhibiting Zoo and Aquariums whose tourism revenue stream has been impacted by travel and social distancing restrictions.

This $139.6 million in funding is helping eligible zoos, aquariums and wildlife parks to remain viable and ready to welcome tourists.