Fact sheet 3: 2021-22 Budget Overview
1. General overview and economic outlook:
Deficit will reach $161b this year
Forecast growth of 1.25% 2021-22, 4.25% 2022-23
5.6% unemployment falls to 5% in 2022-23
International border closures until 2022-23
2. Budget priorities:
Secure Australia’s economic recovery
Build for the future
Job creation
Infrastructure
3. Key initiatives and savings measures:
Health services – vaccine roll out
Tax relief
Housing and small business
Skills. training and childcare
4. ALGA Board priorities
| ALGA Board Priorities | Coalition Budget 2021-22 Measures |
| Financial Assistance Grants | In 2021-22 the Australian Government will provide $2,652.2b in Financial Assistance Grants funding. This includes $1.3b which was brought forward from the 2021-22 estimate and paid to States and Territory Governments in 2020-21. The remainder is $1.326.1b in 2021-22. (Budget Paper 3 p89) Commonwealth estimated taxation revenue (on accruals basis) for 2021-22 is $445.6b (Budget Paper 1, Statement 5 Table 5.1 P129). The Financial Assistance Grants as a proportion of Commonwealth Tax Revenue in 2021-22 is therefore estimated to be 0.6 %. This is unchanged since 2020-21 because. In 2022-23 it is expected to be 0.6%. |
| Local Roads and Community Infrastructure Program | Local Roads and Community Infrastructure – extension – further $1b over two years, $400.7m in 2021-22 and $600.7m in 2022-23 (BP2 P161). Total expenditure is $2.5b. Stronger Communities Program Round 7 for small capital projects – $28.2m over two years (BP2 P167) Building Better Regions Fund Round 6 – $256.5m over four years (BP2 P169) |
| Local Roads Investment Program | National Freight and Supply Chain Strategy – additional funding $28.6m over four years including end to end performance evaluation for freight system and $12.1m over three years to fund engineering assessments for local government roads. (BP2 P163) |
| Roads to Recovery | $499.5m in 2021-22 (BP3 P59) $499.5m in 2022-23 $476.7m in 2023-24 $499.5m in 2024-25 |
| Black Spot Program | Office of Road Safety – additional resources – $5.1m over four years (BP2 P165) Road Safety Program – extension – $1b in 2022-23 includes small scale projects – primarily to State/Territory Governments (BP2 P166) $137m in 2021-22 (BP3 P55) $117m in 2022-23 $110m in 2023-24 $110m in 2024-25 |
| South Australia Road Funding | $20m per year over two years (BP2 P156) |
| Disaster Mitigation Program | Drought Response, Resilience and Preparedness Plan – $212.2m over four years including funding for local government (BP2 P56) Building Australia’s Resilience – $1.2b over five years for improving preparedness and response to natural disasters (BP2 P65) – various measures including $4.5m over two years for resilience capability including at local level. Disaster Recovery Funding Arrangements – $275.9m over three years (BP2 P130) |
| Stronger Regional Digital Connectivity Package | Digital Economy Strategy – $1.2b over six years (BP2 P73) – includes Peri-urban mobile program of $16.4m over three years for bushfire prone areas (BP2 P74) Regional Connectivity Program – $84.8m over 2 years (BP2 P169) |
| Local Government Arts and Culture COVID-19 recovery | COVID-19 Response Package – additional arts sector support – $229.9m over two years (no direct local government funding) (BP2 P148) Indigenous Visual Arts Industry Innovation – $28.1m over five years (BP2 P150) |
| Circular Economy | Incentivizing recycling behaviors – $11m over 4 years (BP2 P57) includes $5.9m over four years for a further grant round of National Product Stewardship Investment Fund (BP2 P57) and $5m over three years for Recycling Label (BP2 P57) Organic waste – Food Waste for Healthy Soils Fund $59.8m over four years and $7.2m over four years for a community and education program (BP2 P53) $5.4 million towards the Southern Adelaide Materials Recovery Facility in South Australia (BP2 P147) |
| Local Government Climate Response Partnership Fund | See Disaster Mitigation Funding above |
5. Other measures of interest for Local Governments in the Coalition Federal Budget:
• Home Ownership – First Home Super Saver Scheme (BP2 P17) and First Home Super Saver Scheme (BP2 P17) Home Builder Extension (BP2 P187)
• Managing burden of feral animals, pests and weeds – $29.1m over four years (BP2 P52)
• EPBC Review Response – $29.3m over four years (BP2 P57) includes independent Envt Assurance Commissioner, extra resources and protection of indigenous cultural heritage.
• Murray Darling Basin, managing water resources – $1.5b over four years (BP2 P58)
• Oceans Leadership Package – $100.1m over five years (BP2 P59)
• Roadmap for respect – sexual harassment $9.3m over four years (BP2 P61)
• COVID-19 Response Package – aviation and tourism support $1.8b over four years (BP2 P69)
• Women’s Economic Security Package – $1.8b over five years (BP2 P81)
• Women’s Safety – $998.1m over four years to reduce and support victims of domestic violence (BP2 P83)
• Newcastle Airport Improvements – $66.1m over two years (BP2 P86)
• Addressing workforce shortages on key areas – Job Trainer Fund extension – $506.3m over two years (BP2 P88)
• Boosting Apprenticeships Commencements wage subsidy – $2.7b over four years (BP2 P88)
• Child Care – $1.6b over four years (BP2 P91)
• Aged Care – Royal Commission Response – $698.3m over five years (BP 2 P99)
• Aged care – home care – $7.5b over five years (BP2 P100)
• Guaranteeing Medicare – rural workforce strengthening – $80.9m over five years (BP2 P111)
• Mental Health – $2b over four years (BP2 P117)
• Emissions Reduction and New Investments – $1.6b over ten years (BP2 P138)
• Northern Australia – next five year plan $189.6m over five years (BP2 P142)
• Community Development Grants Program – $55.5m over three years – specific projects identified (BP2 P147)
• Infrastructure Investment – by State/Territory (BP2 P 151 – 160)
• National Water Grid – $160m over two years includes specified projects (BP2 P164)
• Registration of Remotely Piloted Aircraft Systems and Fee Reform – $28.3m (BP2 P165)
• Rebuilding Regional Communities – $6.1m over 2 years (BP2 P169)
• Scoping public service hubs in Regional Australia – $0.6m in 2021-22 (BP2 P169) and regulatory barriers for business relocation in regional Australia
• Indigenous Skills and Job Advancement – $243.6m over five years (BP2 P173)
• National Strategy to prevent and respond to child abuse – $146m over four years (BP2 P174)
• Cyclone and related Flooding Insurance Pool for Northern Australia – $2.4m in 2021-22 to establish a task force (BP2 P186)
• National Housing and Urban Research Program $5.8m over three years and Housing Data Dashboard (AIHW) – $1.2m over four years (BP2 P188)