After being caught on the back foot with the appearance of COVID-19, the Federal Budget 2022-23 seems to have missed an opportunity to capitalise on the forward momentum in preparing for and tackling emerging infectious diseases. Investment for the highly anticipated new mRNA vaccine facility in partnership with the Victorian Government and Moderna has been omitted from the Budget, citing sensitivities relating to the arrangement being commercial-in-confidence. $132.5 million has been outlined for the investment in RATs and PPE over the next year (2022-23).

A further $984 million has been listed to extend the national partnership on the COVID-19 response supporting the states and territories over two years. The two major components of the response are the Winter Response Plan and $1 billion to extend the vaccine roll out. $6 billion is invested to support these activities over the next four years.

COVID-19 Funding for the response to COVID-19 is largely related to PPE, vaccines, treatments, extension to temporary telehealth item numbers and preparing for the next phase in the pandemic. By contrast, health funding declines as a proportion of total government expenditure in the forward estimates, from 17.4% in 2021-22 to 16% in 2024-25. This is driven by growth in spending on aged care service provision and the NDIS. As a proportion of total government expenditure, health, and social care (health, aged care and NDIS spending) is projected to grow in the forward estimates from 26.9% in 2021-22 to 27.5% in 2024-25. Notably absent from the Federal Budget 2022-23 are substantial funding commitments to progress the Closing the Gap agenda and health equity, and to address the health impacts of climate change. The key announcements were: A $78 billion underlying cash deficit forecast for 2022-23, $20.9 billion better than forecast in the December 2021 Mid-Year Economic Fiscal Outlook A package to address cost of living pressures includes a temporary fuel excise cut, one off payments of $250 to eligible recipients and an increase of $420 to the Low-to-Middle-Income Tax Offset 120% tax deduction for small businesses to upskill employees and encourage digital adoption Expansion of the Patent box regime to the low emissions technology and agricultural sectors Extra funding announced for COVID-19 ($6 billion), mental health (further $547 million over 5 years), aged care (further $468.3 million over 5 years) and $39.6 billion to continue the NDIS program Responses to climate and natural disaster impacts, alongside continued focus on low emissions technology and energy security Significant funding allocated to build resilience into Australia’s infrastructure networks Significant investment in readiness of the workforce for the digital economy Parents in charge more flexibility in Paid Parental Leave. Borders are open, and Australia is getting back to business. Differing levels of structural reform are progressing across education, digital transformation, climate and immigration. A strategy of stimulus has been pursued alongside major spending in infrastructure, health and defence. On 29 March 2022, Treasurer Josh Frydenberg handed down a 'good news' Federal Budget within an environment of global and domestic economic uncertainty a war in Europe, a global surge in inflation and a new omicron variant spreading around the country.

Federal budget 2021