Australian Treasurer predicts budget surplus while delivering funds for arts, events and sport

Delivering the nation's first budget with a surplus in 10 years, Australian Treasurer Jim Chalmers has presented what he says strikes a “methodical balance” to see people through the hard times while setting the country up for a better future.

With a surprise $5.7 billion injection of funds into Medicare, Treasurer Chalmers also introduced cost-of-living relief measures in the 2023/24 budget that he said would shave 0.75% off inflation.

For leisure industry sectors, the Federal budget delivers and range of funding, with a number of commitments already announced.

SPORT AND PHYSICAL ACTIVITY
New Federal budget commitments will back major sporting events, related diplomacy, codes and physical activity, with $39.8 million to fund initiatives.

The budget promises $8.3 million in the coming year to extend the Local Sporting Champions program. This encourages young Australians to participate in state, national, and international sporting competitions.

In response to increasing cybersecurity threats, $3.8 million will go to the Australian Sports Foundation to enhance its information technology network. This investment is intended to safeguard the organisation's digital assets and protect sensitive information.

The budget also includes a $3.3 million allocation to maintain and augment Surf Life Saving Australia's vocational education and training support volunteers. This funding will be used so that they are well-equipped to keep beaches safe.

The Big Issue’s Community Street Soccer Program will receive $3.3 million over two years to help it expand. The initiative offers inclusive sporting opportunities for disadvantaged communities across Australia.

To improve gender representation in sports, $2.1 million over the next two years will go to the Federal Department of Health and Aged Care and the Australian Sports Commission. This funding aims to increase female participation in coaching, officiating and sports administration roles.

A $1.6 million allocation over three years goes to Reclink Australia to broaden sport and recreation programs for disadvantaged Australians in the Northern Territory and the Australian Capital Territory.

An $800,000 commitment has been made to devise a new National Sport Plan and a review the Australian Sports Commission Act 1989, while $200,000 million will support the development of the government's major sporting events strategic investment model.

Perhaps the biggest surprise is an allocation of $5 million over three years from 2024/25 to Australian Masters Games organiser and on-off advocacy body the Confederation of Australian Sport (CAS) to support events including Perth’s bid to host the World Masters Games in 2029.

Some of the funds commited to CAS will be contingent on the success of Australia's hosting bid.

INFRASTRUCTURE, REGIONS AND LOCAL GOVERNMENT
Major Venues
In addition to already announced funds for the new stadium in Hobart and upgrades to Launceston’s UTAS Stadium, the budget includes a $3.4 billion commitment over 10 years for venue infrastructure for the Brisbane 2032 Olympic and Paralympic Games.

This includes to $2.5 billion to construct the Brisbane Live! arena and up to $935 million towards the construction or upgrade of 16 other venues for the Brisbane Games.

Regional Support
The budget also featured a new Growing Regions Program to support local government and community groups in regional Australia to upgrade and replace aging aquatic facilities.

The grants will provide between $500,000 and $15 million to cover 50% or more of eligible expenditure and can be used for funding community infrastructure including local aquatic and sport facilities, regional arts venues, playgrounds and visitor attractions.

Local Government
The Federal budget represented a solid investment in local government, with $3.1 billion in Financial Assistance Grants to be provided to councils in the coming 12 months.

ARTS
The 2023/24 Budget provides immediate support to artists and arts organisations to deliver support for our cultural institutions, training and supporting creators and delivering on the new National Cultural Policy Revive.

As part of the budget announced this year the Government will invest:

• $535.3 million over four years for Australia’s nine National Collecting Institutions, institutions like the National Archives of Australia and National Gallery of Australia.

• $286 million to deliver on Revive including through; restoring core arts funding; establishing Creative Australia, Music Australia, Writers Australia and a Creative Workplaces centre to support arts workers; establishing a First Nations-led body dedicated to First Nations work; sharing the National Gallery of Australia’s collection with regional and suburban galleries; and improving incomes for authors.

• $9 million in 2023/24 to Australia’s eight national arts training organisations to secure critical training courses and skills development and maintain Australian trained in-demand performers and production specialists for Australia's live performing arts and screen industry and the creative economy more broadly.

• An additional $112.3 million to attract international investment in the Australian screen industry to provide domestic employment and training opportunities by increasing the Location Offset rebate to 30%.

• $6.9 million over for years from 2023/24 for Ausfilm to continue to promote screen productions in Australia.

ENVIRONMENT
Click here to view the range of environmental programs backed in the budget in our article 2023 Federal Budget allocates significant funding for environmental repair projects.

TOURISM
Tourism Australia funding
Tourism Australia funding will be reduced to $169.1 million in 2023/24 from well below the $208 million in the current financial year, although base appropriation will remain above pre-pandemic levels.

Passenger Movement Charge
The budget will increase the passenger movement charge by $10, taking the charge from $60 to $70 per passengers starting from 1st July 2024.

Although the increase is not as high as first anticipated, the tourism industry is disappointed at the raise.

SMALL BUSINESS
The budget contains a number of measures to support small businesses. Budget support for operators is predominately aimed at assisting operators in reducing energy bills through energy efficiency incentives.

Key measures for tourism and hospitality small businesses include:

• Energy bill relief of $650 for small businesses. Eligibility varies depending on different electricity consumption.

• $314 million for Small Business Energy Efficiency Incentives. Businesses with a turnover of up to $50 million will be eligible claim an additional 20% tax deduction on investments of up to $100,000 in electrification and energy efficiency.

• An instant asset write-off threshold of $20,000 will apply from July for 12 months. It will apply on a per-asset basis for small businesses with aggregated annual turnover of less than $10 million.

• $2.3 million in 2022/23 to extend the Regional Small Business Support Program Pilot until June to continue existing support to regional small businesses.

For more information on the 2023/24 Federal Budget visit budget.gov.au.

Images: The 2023/24 Federal budget (top), concept for the Brisbane Live! arena (middle) and the National Gallery of Australia is one of nine National Collecting Institutions that will benefit from increased funding (below).