As part of the Government’s commitment to ensuring a sustainable future and enabling a decarbonising of Australia’s economy, the Budget includes a reprioritisation of the Climate Change, Energy, the Environment and Water portfolio in order to fund policy priorities, as well as reforms to the operation of the Australian Carbon Credit Unit Scheme. There are also a number of water-related measures including to support Flood Warning Infrastructure and Murray Darling Basin Plan.
Reprioritisations of portfolio policies
The Government has announced a redirection of $113.1 million over 8 years across the Climate Change, Energy, the Environment and Water portfolio to fund portfolio policy priorities. This reprioritisation includes (amongst other things):
- $57.2 million from previous uncommitted funding to new measures supporting clean energy technology investment;
- $22.2 million from partial reversal of a 2020-21 Budget measure to redirect uncommitted research funding to delivering high-quality emissions data and reporting against Australia’s emissions reduction targets;
- $2.0 million from partial reversal of a 2022-23 Budget measure with uncommitted funding towards implementing the Government’s Nature Positive Plan: better for environment, better for business; and
- $0.7 million from the partial reversal of a 2019-20 Budget measure to redirect uncommitted funding from the Energy Efficient Communities program to better align with Government priorities.
Reliable, Secure and Affordable Energy
The Government has announced a commitment to provide $80 million over 4 years (and $11.1 million ongoing per year) to support the supply of cheap, clean and reliable energy across Australia, including through:
- $35.6 million over 4 years (and $8.8 million ongoing per year) to the Australian Energy Regulator for compliance and enforcement activities;
- $28.4 million over 4 years to support the delivery of new cross-government energy market reforms and national energy projects as directed by Energy Ministers through the Energy Special Account; and
- $10.9 million over 4 years (and $2.4 million ongoing per year) to the Australian Energy Regulator for new legislated functions relating to supporting Australia’s energy transformation and reduce emissions.
Water infrastructure projects and related measures
There were a number of water-related measures in the Budget, including:
- Flood Warning Infrastructure: $236 million over 10 years will be provided to remediate high priority flood warning infrastructure and to address critical reliability risks. As part of this, the Bureau of Meterology will acquire, upgrade and integrate local and state government-owned rain and river gauges into its existing flood warning network. Partial funding will be held in the Contingency Reserve until cost-sharing arrangements for the ongoing maintenance of the assets are agreed with the states and territories.
- Murray Darling Basin Plan: The Budget also includes $103.7 million to undertake the first statutory review of the Murray-Darling Basin Plan 2012, which seeks to enable the Basin to adapt to the impacts of climate change. A further $44.9 million will be provided to the Department of Climate Change, Energy, the Environment and Water to provide advice and work with Basin states and affected communities on the Basin Plan.
- National Water Grid Fund: The Government announced that it would not proceed with certain National Water Grid Fund projects, which seeks to achieve savings of $872.5 million over 11 years. These savings will be redirected to fund other Government priorities. Additionally, $70.9 million over 11 years will be provided to extend resourcing for the National Water Grid Authority to deliver committed water infrastructure projects and support its expanded remit. There will also be a reallocation of $197.1 million over 6 years to fund the construction of 3 water infrastructure projects.
- Water Ownership by First Nations people: $9.2 million will be provided over 4 years to consult on and design an enduring arrangement for First Nations people to own, access and manage water in Australia.
- Abolishment of the North Queensland Water Infrastructure Authority: The North Queensland Water Infrastructure Authority will be abolished, estimated to save $9.5 million over 4 years. The functions of the Authority will transfer to the Department of Climate Change, Energy, the Environment and Water and savings from this measure will be redirected to fund other policy priorities.
- Rivers and Catchments program: Additional funding of $118.5 million over 6 years will be provided to fund projects to improve local waterways and to fund activities that restore the natural habitats of aquatic species and create recreational spaces for local communities.
- Water export ban: $3.9 million will be provided to delay the commencement of cost recovery for the regulation of waste exports under the Recycling and Waste Reduction Act 2020 (Cth) by one year to 1 July 2024.
- Water market reform: The Government will provide $32.7 million over 4 years to restore the transparency, integrity and confidence to water markets.
Review of Australian carbon credit units
The Government will provide $18.1 million over two years to implement reforms to the operation of the Australian Carbon Credit Unit (ACCU) scheme as part of the Government’s initial response to the Independent Review of ACCUs.
The Government also noted that functions relating to method development activities for ACCUs has been transferred from the Clean Energy Regulator to the Department of Climate Change, Energy, the Environment and Water.
National Waste education campaign
The Government will provide $10.0 million over two years towards a program seeking nationwide consumer behaviour change in relation to waste.
Natural Heritage Trust Projects
The Government has allocated $741.3 million over 5 years from the National Heritage Trust special account as follows:
- $341.2 million over 5 years to protect nature, threatened species and habitats and to maintain delivery capability through activities like the BushBlitz, National Resource Management partnerships and on-ground conservation and recovery activities;
- $302.1 million over 5 years to support a climate-smart, sustainable agricultural sector;
- $50.0 million over 5 years to conserve and restore Ramsar listed wetlands and catchments; and
- $48.0 million over 5 years to continue management of Australia’s state-managed world heritage listed properties.
Nature Positive Plan
The Government will provide $214.1 million over 4 years to deliver the Nature Positive Plan: better for the environment, better for business, including:
- $121.0 million over 4 years to establish Environment Protection Australia to enforce environmental laws and restore confidence in Australia’s environmental protection system;
- $51.5 million over 4 years to establish Environment Information Australia to provide an authoritative source of high-quality environmental information;
- $34.0 million over 2 years to implement the Nature Positive Plan, including legislative reforms and national environment standards; and
- $7.7 million to continue developing the foundations of a Nature Repair Market, including detailed rules for different types of projects.
Protecting national parks
$355.1 million will be provided over 4 years (and $68.0 million ongoing per year) to protect Commonwealth National Parks and marine reserves and deliver critical infrastructure funding for the Mutitjulu community. The funding includes:
- $127.8 million over 4 years (and $40.3 million ongoing per year) to sustain the Director of National Parks’ core business and deliver environmental conservation, on-park research and threatened species protection;
- $92.8 million over 4 years (and $0.7 million ongoing per year) to provide essential water, sewerage and electrical services for the Mutitjulu community;
- $70.4 million over 4 years (and $25.6 million ongoing per year) to sustain existing assets and prevent further deterioration, and address immediate safety risks by replacing assets at the end of their functional life;
- $27.6 million over 4 years to address critical infrastructure needs, including housing at the Booderee, Kakadu and Uluru-Kata Tjuta National Parks;
- $25.9 million over 4 years to improve visitor and tourism infrastructure at Kakadu National Park; and
- $10.6 million over 4 years for essential technology and communication upgrades.
Marine science funding
To secure the future of the Australian Institute of Marine Science, and address its ongoing financial sustainability, the Government will provide $163.4 million over 4 years, which includes funding to enable the Institute to continue delivering on projects to protect and restore the Great Barrier Reef, and the enhancement of existing science and technology capabilities.
Sydney Harbour Federation Trust
Additional funding of $45.2 million over two years will be provided to continue the renewal and repair of heritage-listed infrastructure and public safety improvements at North Head Sanctuary and Cockatoo Island.
Environmental regulation assessments
As part of the Government’s initial implementation of the Nuclear-Powered Submarine Program, $7.6 million over 2 years will be provided to the Department of Climate Change, Energy, the Environment and Water to conduct environmental regulation and assessments required under relevant environmental legislation.
Disaster Support
The Government has also committed funding to improve Australia’s resilience to natural disasters and support recovery of impacted communities, including $200 million for disaster resilience initiatives through the Disaster Ready Fund to address a broad range of natural hazards, infrastructure needs, and for systemic risk reduction projects.
Digest what was (or wasn’t) in the Federal Budget, what that means, and whether we now anticipate significant tax reform.