2022-23 Budget supports Australia’s trade, investment and visitor economy to build a stronger future
As part of our plan for a stronger future, the Morrison Government is backing our tourism industry, building on our trade relationships and supporting trade diversification at a time of heightened global uncertainty.
One in five jobs, including one in four in regional Australia, rely on trade. Foreign Direct Investment (FDI) also supports one in 10 jobs and generates approximately 40 per cent of Australia’s exports.
The 2022-23 Budget provides funding to support the Government’s pro-free trade agenda, makes Australian exports more globally competitive, improves access to global supply chains and backs Australian businesses and jobs. This includes:
- $187.1 million to lay the foundations for a world-class cross-border trade system for Australia, including by delivering a ‘tell us once’ trade system. The Simplified Trade System reform agenda is making trading easier and less costly for close to 200,000 Australian businesses. This goal will continue to be achieved through improved user experiences for businesses, simplified regulations, and modernised digital systems.
- An additional $100 million to expand the Export Market Development Grants (EMDG) program to provide financial support to existing regional and rural small to medium-sized exporters adversely affected by significant global impacts, to promote their goods and services, including tourism, in new markets. This adds to the $80 million for EMDG announced in December 2021.
- $19.5 million over two years to continue to attract global business investment and talented individuals into Australia, by extending the Global Business and Talent Attraction Taskforce, to be renamed the Global Australia Taskforce.
The Government is also implementing the recently signed Australia-UK Free Trade Agreement, at a cost of $171.7 million over four years. The Agreement includes the creation of a new mobility pathway for UK innovators and early career professionals to Australia; new incentives for audio-visual co-productions; and implementation of a Strategic Innovation Dialogue.
These initiatives are in addition to the over $400 million in 2022-23 for Austrade to continue supporting Australian exporters to reach international markets and to support local jobs and businesses.
The Government is also providing $146.5 million to support the tourism industry, including:
- $75.5 million in targeted support for travel agents and tour arrangement service providers to continue to operate and rebook travel credits through a third and final round of the Consumer Travel Support Program.
- $60 million over two years to accelerate international tourist arrivals, including attracting more visitors to Australia from new and diverse international markets.
- $6.8 million for the implementation of the Government’s THRIVE 2030 long-term strategy for tourism recovery, including $2 million for a visitor economy online employment and skills platform and $4.8 million for Tourism Research Australia to capture and analyse more tourism and visitor data to help businesses operating in the visitor economy make improved business decisions.
The Government will also boost the number of Working Holiday Makers through a one-off 30% increase across all country caps in 2022-23. This will help the Australian retail, hospitality, tourism and hotel operators tackle workforce shortages.
This Budget builds on the Morrison Government’s strong record supporting free trade, promoting trade diversification and cutting red tape for exporters so businesses can reach global markets and provide jobs and opportunities in Australia.
When the Coalition came to office, around 27% of Australia’s trade network was covered by free trade agreements. With the successful signing and entry into force of the UK free trade agreement around 75% of Australia’s trade network will be covered by FTAs helping to deliver a stronger economy for Australia. The Government continues to negotiate with the EU and India which together will bring FTA coverage to around 88%.
The further investment in the tourism industry in the 2022-23 Budget builds on our support for the sector throughout COVID-19 and our long-term strategy to grow and rebuild the visitor economy.
Since March 2020, the Morrison Government has provided more than $20 billion in assistance to the tourism and hospitality sector, through JobKeeper, the Cash Flow Boost, and targeted sectoral programs including the Consumer Travel Support Program, Zoos and Aquariums, Business Events Grants, Recovery for Regional Tourism and Tourism Aviation Network Support.
Our long-term plan for the visitor economy, set out in the industry-led THRIVE 2030 report, will help grow the value of the visitor economy to $230 billion by 2030 and continue to support the more than 300,000 businesses and more than one million Australian workers engaged in the sector.
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