2024-25 Federal Budget implications for ACBC members & trade with China
By Tom Parker, Chief Executive Officer | Australia China Business Council
The 2024 Federal Budget aims to position Australia at the forefront of the net zero transition by focusing on critical minerals and renewable energy. Success hinges on businesses leveraging government incentives to secure Australia’s future competitiveness in the global economy. See below for ACBC’s insights on how it might affect our members and bilateral trade with China. See the Trade Minister’s media release for more details:
Education
The first phase of funding for the Universities Accord, which was released earlier this year, is a fundamental review of how the tertiary sector is managed and set up for the future. International students provide a $48 billion boost to Australia’s economy and employ 200,000 workers, making it the nation’s fourth-largest export. However, the federal education minister will be able to cap international student numbers from 1 January, with some details about student housing linked to the number of student enrollments outlined in the budget. Watch this space.
Agriculture
The Budget will include $2 million for Austrade to provide additional surge support for affected Australian agricultural exporters to re-establish commercial connections in China but to also continue to diversify into other markets.
Climate Action / Decarbonisation
$7 billion over eleven years Critical Minerals Production Tax Incentive (CMPTI) to support downstream refining and processing and improve supply chain resilience.
$1.7 billion over ten years for the Future Made in Australia (FMiA) Innovation Fund administered by ARENA to support innovation, commercialisation, pilot and demonstration projects in priority clean technology sectors.
Investment
As indicated at the end of last year, the Business Innovation and Investment scheme, which included the 888 subclass for business migration, has been scrapped and replaced with a new Innovation Visa program. There is still some discussion around what it means for the 17,000 applicants in the previous scheme and if the new Innovation Visa program will be linked to other key government policy areas.
Migration
To assist in the cost of living, rental and housing crisis and ease inflationary pressure, the government has outlined a series of plans, including the above Innovation Visa, cap on working holiday visas and reduction in international student numbers to almost halve overall migration numbers from 528K to 260K next financial year. The reduction has also seen an increase in funding for skills and training, with $9.9 billion over 4 years to fund the National Skills Agreement and $218.4 million over 8 years to develop workforce and trade partnerships as part of Future Made in Australia.
Tourism
$8 million to support Chinese tourists travelling to Australia in groups through the ongoing funding for China’s Approved Destination Status scheme.
