Future Made in Australia Initiative
The government will invest $218.4 million over the next 8 years, to develop a skilled and diverse workforce and strengthen trade partnerships under the Future Made in Australia initiative. This plan includes implementing a ‘Future Made in Australia’ Act to establish a National Interest Framework, identifying priority industries (e.g. renewable hydrogen, critical minerals processing, green metals, low carbon liquid fuels, and clean energy manufacturing) in two streams:
1. Net Zero Transformation: Optimising investment in affordable, clean energy in priority industries, giving Australia the opportunity to build a competitive advantage; and
2. Economic Security and Reliance: Priority industries are essential to Australia’s stability and resilience
Half of the funds will support innovation and commercialisation of new renewable technologies. Creating the opportunity for 10,000 new apprenticeships in the clean energy sector, including construction and advanced manufacturing, through the New Energy Apprenticeships Program. This will play a significant role in shaping the global economy and intention to capitalise on Australia’s natural resources and skilled workforce to ensure that we reach the goal towards a net zero global economy.
Gender Pay Gap Reduction
The national gender pay gap has fallen to a record low of 12%. To further address this, the ‘Future Made in Australia’ initiative will invest $55.6 million over four years in the Building Women’s Careers program, promoting female participation in key industries such as clean energy and construction.
In addition to this initiative, the Paid Parental Leave (PPL) scheme will further help reduce the national gender pay gap and support women’s retirement savings by increasing their superannuation balances. Starting July 1 2025, an additional 12% of Government-funded Paid Parental Leave will be added to the recipient’s superannuation account. This change encourages parental leave in the workplace and enhances the value placed on these entitlements. Additionally, $10 million will be provided to help small businesses support and administer the PPL scheme.
Skilled Migration and Compliance
With unemployment predicted to rise to 4.8%, the government will allocate $18.3 million over four years to reform Australia’s migration system. Key measures impacting employers include:
Education on Workplace Immigration Compliance: $15 million over three years to educate migrants and employers. Employers will need to ensure work rights are verified, avoid discriminatory hiring practices and comply with government reporting requirements.
Data Matching Pilot: $1.9 million to ensure compliance with immigration and tax laws. Meaning, employers could face increased scrutiny regarding the accuracy and completeness of immigrant employee records and reporting.
Key measures include:
MATE Program: Launching a new scheme Mobility Arrangement for Talented Early Professionals Scheme (MATE) program for 3,000 Indian graduates and professionals to work in Australia for up to two years. Giving employers the opportunity to leverage a larger pool of specialised talent, addressing skill shortages.
482 TSS Visa Changes: Reduction in work experience requirements for Subclass 482 TSS Visas from two years to one year. Making it easier to sponsor foreign workers with relevant skills and experience and fill critical skills gaps.
Trades Recognition Australia Enhancements: Streamlining the recognition process for skilled workers, especially in the ICT sector. Ensuring a more readily available pool of skilled workers.
Net Overseas Migration: Expected to decrease by half, from 528,000 in 2022-23 to 260,000 in 2024-25, likely due to housing and cost-of-living pressures arising from the pandemic’s aftermath. Employers should adapt recruitment strategies to address potential skilled worker shortages.
Support for Small Businesses:
$20,000 Instant Asset Write-Off Extension: Extended until 30 June, 2025, to improve cash flow and reduce compliance costs.
Mental Health Support: $10.8 million for tailored financial and mental wellbeing support for small business owners through the NewAccess program.
Inclusion of People with Disabilities
An additional $227.6 million will support a new program starting July 2025 to transform employment services for people with disabilities, ensuring high-quality services tailored to individual needs.
Boosting Productivity
The government will fund $60 million over four years to boost the Productivity, Education and Training Fund, supporting practical activities by employers and workers to improve workplace productivity and encourage cross-collaboration.
International Business Relations
The government will invest $505.9 million over five years from 2023-24 to strengthen engagement with South-East Asia. This includes $1.1 million over two years to improve visa access to Australia and provide extended entry for business and frequent travelers from ASEAN member countries, enhancing business relations, expanding markets, collaborations, and trade opportunities.
The 24/25 Federal budget presents a wealth of opportunities to enhance workforce development and improve business operations. From substantial investments in skills and training under the Future Made in Australia initiative to targeted support for small businesses and gender pay gap reduction efforts, these measures will help you attract, develop and retain top talent.
The extension of the $20,000 instant asset write-off and additional support for Paid Parental Leave make it easier to manage financial and operational challenges. Meanwhile, reforms in skilled migration and compliance will ensure a steady influx of qualified workers, even as overall migration numbers decrease.
By staying informed and adapting to these changes, you can leverage these government initiatives to build a more resilient, skilled, and diverse workforce, ultimately contributing to your organisation’s success and Australia's economic growth.
For more info on the new Federal Budget changes please visit budget.gov.au or reach out to us sirius@siriuspeople.com.au
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