Budget 2022

Pledge of $10bn will see electronic spy agency double and ramp up ability to launch offensive cyber operations.

Earlier this month the government announced plans to recruit an extra 18,500 defence personnel by 2040 at a total cost of $38bn. The government said it would bolster Australia’s commitment to its Five-Eyes and Aukus partners “while supporting a secure Indo-Pacific region”. The Coalition has previously faced accusations of talking tough on cybersecurity but failing to deliver. While ASD on the whole will double in size, it is expected to triple its offensive cyber capabilities. But the funding is spread over 10 years and only $4.2bn will be spent in the first four-year budget cycle. After the establishment last week of a space command within the Royal Australian Air Force, the government is also pledging more funding to develop Australia’s space industry, to be led by the Australian Space Agency.

Of course, using GDP to measure defence spending is a crude tool; 2021-22's defence budget started off at 2.09% but is now a hair below 2.0% at 1.98% because ...

The 2020 Defence Strategic Update gave us a few glimmers of different thinking, with hints that Defence would explore asymmetric approaches to deterring threats. It’s not spelled out in the PBS, but ASPI understands that the $38 billion for the first 12,500 is already built into Defence’s current funding model. Of course, concerns over Defence’s ability to spend its acquisition budget probably played a role, since the department has come up around a billion short of its spending target in each of the past two years. And considering the ADF is already 1,600 people short of where it’s meant to be right now, even that might be optimistic. Two weeks ago, the government announced an increase of 12,500 military personnel in the coming decade and a further 6,000 the decade after that. But even its supporters can’t be happy with the fact that by the end of 2022-23 we will have spent over $2.3 billion on the Boxer combat reconnaissance vehicle with only 25 vehicles delivered (and those from overseas) five years after the project was approved. Indeed, we should note that as in the previous five years, the government has once again delivered the funding it committed to back in the 2016 Defence White Paper. And there’s the rub. One might say that the M-113 has been obsolete for three decades already, so where’s the harm in waiting yet another one for its replacement? Is it time to reconsider a funding model developed nearly seven years ago, particularly when that funding line continues throughout the forward estimates, at which point it will be based on assumptions over ten years old? It’s pouring an additional $4.2 billion over the forward estimates and $9.9 billion over the coming decade into the Australian Signals Directorate to deliver greater offensive and defensive cyber capabilities. Despite high inflation, it’s still a real increase of 3.8%. For those interested in spending as a percentage of GDP, it’s 2.11% based on the government’s GDP predictions. The 2022-23 defence budget is a conflicted program.

With an election looming, Treasurer Josh Frydenberg uses his address at the National Press Club to convince Australians his government's budget is the way ...

"We were finalising content in the details of that, but we provisioned for it in the responsible way you do. - 1.From 12:01am today, Australia's fuel excise (aka the money you're giving to the government at the petrol pump) has been halved from 44.2 cents per litre to 22.1 cents. Here's a super quick rundown on what you should know. "Last night's budget demonstrates that our economy now has real momentum. "The price of oil is up by 50 per cent since the start of the year. "The verdict is now in. So there are some important developments occurring across the economy, where we are being required to spend more on aged care, NDIS and defence. By Maani Truu By Maani Truu By Maani Truu By Maani Truu By Maani Truu

Regional infrastructure has received record funding with four regions getting $7.1b over the next decade and billions more dedicated to building Queensland ...

NAIF provides debt and equity finance and has to date committed $3.4 billion to 31 projects. The government said it was pushing ahead with its “regionalisation agenda” by relocating the headquarters of the North Queensland Water Infrastructure Authority from Canberra to Bowen in north Queensland. Projects that complement the new $14.5 billion inland rail link between Brisbane and Melbourne, such as road and rail connections and freight hubs, will be eligible for an extra $150 million to “deliver benefits” to regional industries and communities along the rail corridor. The government will use the National Water Grid Fund to spend $7.4 billion on 13 water infrastructure projects, including $6.6 billion on dams in Queensland where the Coalition is keen to secure votes in the upcoming federal election. It is targeting manufacturing and onshore processing of minerals in the NT, and water infrastructure – including dams – and supply chain projects in Queensland. The federal government spent $15.8 billion on infrastructure in 2021-22 and another $81 billion will be invested over the next four years, including $23.9 billion in 2023-24.

Industry figures point to areas of concern in the Budget, especially within cyber security and Australia's chronic talent shortage.

“It will take time for the industries that are most under pressure to feel the benefits of this funding. Federal budget prioritisation should include offering international talent access to visas, tax breaks for new skilled arrivals and a path to permanent residence.” Speaking about the struggles of attracting and retaining talent, Stax A/NZ managing director Adam Beavis said: “The Australian tech sector is struggling to access enough digitally skilled talent to help them realise the opportunities in these areas. Responding to this, Stax’s Beavis said he welcomed the move. Considering the overwhelming evidence that the majority of successful cyber-attacks/breaches are the result of human error, it stands to reason and logic that education and awareness of humans should be non-negotiable.” In the Australian IT sector, labour shortages need to be filled urgently so our local economy and businesses can keep pace with digitisation and continue to compete on the world stage. The competition for tech talent is global – what will make skilled people come to Australia rather than the US or Europe? Instead, businesses will be able to offer a fixed cap on the amount that employees pay for them. “There’s a lot of catching up to do. “The investment serves as an urgent call to action for Australian businesses to get serious about cyber security. Even if we invest more in education and reskilling, which we can and should do, that’s a distant start. "It’s an underfunded area and budget constraints is a key issue that is holding back cyber preparedness for many businesses.

Prime Minister Scott Morrison said the government's investments in Australia's national security spanned air, land, sea, space and cyber capabilities. “In these ...

“Project REDSPICE is a critical investment in our digital sovereignty. “REDSPICE ensures Australia keeps pace with the rapid growth of cyber capabilities of potential adversaries. Through this record investment in national security and our veterans, the Morrison Government is committed to building a more secure Australia and protecting our way of life for future generations. “The women and men who serve this nation in uniform make incredible sacrifices for our country and we are ensuring that we repay our debt to them by providing the support they, and their families, need.” “Our record investment in developing and building the equipment we need to defend our nation is creating more than 100,000 jobs across the country. It will also create over 1,900 new jobs, almost doubling the ASD’s size. It acknowledges the nature of conflict has changed, with cyber-attacks now commonly preceding other forms of military intervention – most recently demonstrated by offensive cyber activity against Ukraine. “The Government will also upgrade and extend in-service support for the Hawk 127 Lead-In Fighter Training System that will result in a $1.5 billion investment in the Air Force’s future aviation capability.” “The Morrison Government’s investment in the ASD will allow our cyber operators to punch back at our adversaries and protect Australia and our interests online.” “The Government will invest $126.4 million for Operation FLOOD ASSIST in 2021-22. Assistant Minister for Defence the Hon Andrew Hastie MP said through the $270 billion investment into the capability and potency of our Defence force, we continue to ensure Australia remains ready and adaptable to the changing nature of warfare. “This Budget also continues to build on support for our veterans and their families, in recognition of the service and sacrifice they’ve made to keep our nation safe and secure.”