ALGA analysis of the 2019-20 Federal Budget

Each year, ALGA provides an analysis of the Federal Budget with a specific focus on its impact on local government. The aim of the analysis is to provide local government with information on the total financial assistance it receives from the Australian Government as well as putting this assistance into context with the government’s overall budget priorities.

Individual fact sheets have been prepared on those topics most relevant to local government. Each fact sheet highlights major expenditures and policy initiatives.

Table of Contents

Page 1 (current page): Fact sheet 1 – Budget overview
Page 2: Fact sheet 2 – Transport – A Local Government Perspective
Page 3: Fact sheet 3 – Financing Local Government

Fact sheet 1: 2019-20 Budget Overview

General overview and economic outlook:

• 28th consecutive year of growth with strong fundamentals
• Unemployment 4.9% and youth labour markets improving
• Economy forecast to grow by 2¾% in 2019-20 and 2020-21
• Continue to benefit from growth in major trading partners with economies in Asian region growing relatively strong
• Surplus is $7.1 billion in 2019/20, first surplus in a decade and on track to eliminate debt by 2029-30

Budget priorities:

• Returning the budget to surplus
• Providing lower taxes
• Guaranteeing essential services – like Medicare, schools, hospitals & roads
• Delivering more jobs
• Investing in communities including economic and community infrastructure

Key initiatives and savings measures:

• Major focus on investment in infrastructure – increasing investment to $100 billion over 10 years
• Tax cuts originally scheduled for 2022 brought forward, giving median income earners an extra $25 a week.
• Permanent migrant intake to be cut to 160,000 a year from 190,000 a year
• Energy supplement – $75 for singles and $125 for couples (means tested)

Of interest to local government:
Transport: See also Fact Sheet 2 for direct funding to local governments

• Improving Road Safety – $38.5 million (BP2, 129) – including an Office of Road Safety, Road Safety Innovation Fund, Heavy Vehicle Safety Initiative, Funding for ARRB to assist local governments ($2.6 million).
• Infrastructure Investment Program to States/Territories – Roads of Strategic Importance, various roads and transport programs, regional rail, urban congestion, (BP2, 131 – 143)
• National Freight and Supply Chain Strategy (BP2, 145) – Funding for NHVR $6 million for local governments owned road network assessment.
• Regional Airports Program – $102.8 million over 4 years (BP2, 146)

Other:

• National Drought Map- $4.2 million over 4 years to improve and maintain data (BP2, 48)
• Royal Commission into Violence, Abuse, Neglect and Exploitation of People with a Disability – $527.9 million over 5 years (BP2, 54)
• Improving regional telecommunications – $220 million over 4 years (BP2, 59) – new money is $60 million for Regional Connectivity Program
• North Qld Flood Recovery Package – $3.1 billion (BP2, 62)
• Population Package – $2.1 billion BP2, 64) – includes transport (rail) projects (including those funded under other programs), new Centre for Population ($23.4 million) and Destination Australia Program ($93.7 million) for domestic and international students to go to regional Australia.
• School funding ($22.2 million over 5 years) and Skills Package ($525.3 million over 5 years)– various including to regional areas (BP2, 68-69)
• Climate Solutions Package – $3.5 billion over 15 years – various measures including Snowy Hydro, electric vehicle strategy (BP2, 74)
• Supporting Reliable Energy Infrastructure – $75.5 million over 7 years including for local micro grids (BP2, 78)
• Strengthening Medicare – including $62.2 million for GP training places in rural, remote and regional communities (BP2, 89)
• Implementing Sport 2030 (BP2, P92) – $385.6 million over 6 years. Community Sports Infrastructure Program ($42.5 million over 2 years)
• Extension of Home Support Programme (BP2, 101) $5.9 billion for 2 year extension from 2020-21 and $724.8 million over 5 years for a range of aged care services including additional residential and home care packages (some pre-announced already)
• Mental health – natural disaster assistance (BP2, 106) – $5.5 million for communities impacted by natural disasters.
• Funding for North Qld floods – $230 million – including $11 million to 11 local governments (BP2, 112)
• Natural Disaster Resilience Funding – $130.5 million over 5 years to reduce risk and impact of natural disasters (BP2, 114)
• Safer Communities Fund – $58.2 million over 4 years – $35.1 million grant funding for local governments and others to address crime and anti-social behavior, and $23.1 million for Round Four of Safer Communities Fund (BP2, 116)
• Social Cohesion Package – $27.2 million over 4 years to break down barriers to social and economic participation (BP2, 117) – includes funding to Home Affairs to evaluate effectiveness of current social cohesion initiatives.
• National Drug Strategy $337.2 million over 5 years (BP2, 118) to support the National Drug Strategy 2017-2026.
• Adelaide City Deal $165 million (BP2, 123), Albury Wondonga Regional Deal $3.2 million (BP2, 124), Barkly Regional Deal $45.4 million (BP2, 125), Geelong City Deal $30 million (BP2, 127), Hinkler Regional Deal $71 million (BP2, 128), Hobart City Deal $529.9 million over 11 years (BP2, 128),
• Assistance to Farmers in Drought – $20.2 million over 2 years including $15 million for a further 15 affected councils (BP2, 124)
• Building Better Regions Fund – $206.2 million for Round Four. (BP2, P125)
• Stronger Communities Fund Round Five – $26.8 million over 2 years (BP2, P146)
• Australia Day – $0.8 million over 3 years for activities (BP2, P153)
• Co-design process for Constitutional Recognition for ASTI people (BP2, 154) – $7.3 million
• Remote Indigenous Housing Agreements – NT additional funding $110 million per year to 2022-23, SA – $37.5 million 2018-19 only, WA – $121 million 2018-19 only (BP3, 42)
• Social Impact Investment investigation- $5 million (BP2, 156 )
• Fourth Action Plan to reduce violence against women and children $328 million (BP2, 160)
• Extension of National Partnership for early childhood education to 2020-21 (BP3, 20)