The Victorian Chamber supports the Government’s economic plan to prioritise lowering national debt, improving workforce participation and skills development, while supporting business and industry to cope with the difficult domestic and international economic conditions ahead.

The Victorian Chamber’s 2022-23 Federal Budget submission identified recommendations and priorities under the two themes of activating Victorian businesses and building for our future.

They prioritised targeted support for business, improving skills and training, investment in infrastructure and manufacturing and easing the cost of doing business.

Pleasingly, the 2022-23 budget delivers initiatives that addresses many of the recommendations, with focus on three key themes: cost-of-living relief, resilience in Australia’s economy and responsible budget repair.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra said: “The Victorian Chamber is pleased that the Budget includes many initiatives from our submission, particularly measures to address skills and labour shortages by maximising workforce participation among women, pensioners and international students. These will have an immediate impact for businesses right now.”

The following highlights align with the Victorian Chamber’s Federal Budget Submission:

Skills and workforce

• Expanding the Permanent Migration Program to accelerate visa processing, reduce the visa backlog and raise awareness of opportunities for high-skilled migrants;
• Relaxing work restrictions for student and secondary training visa holders to enable them to work additional hours in any sector until 30 June 2023;
• 480,000 fee-free TAFE and community-based vocational education places over four years and providing 20,000 more university places to under-represented groups to study in areas of in-demand skills;
• $100 million for New Energy Apprenticeships and New Energy Skills and
• Encouraging higher workforce participation through cheaper childcare and expanding paid parental leave to 26 weeks for working parents.

Mr Guerra said: “The focus on skills development and vocational training will keep our workforce primed to help business take on future challenges. As the largest connector of apprentices and trainees with employers in the State, the Victorian Chamber looks forward to seeing more detail on the additional funding to incentivise the employment of more apprentices in the clean energy sector.”

Industry development

• Establishing a National Reconstruction Fund to provide $15 billion of capital to grow our industrial base, diversify our economy and boost regional development;
• Modernising the electric grid to help put downward pressure on power prices and support the transformation to a clean energy future;
• Additional investment in renewables generation and storage;
• Delivering the Better Deal for Small Business which will include investing in energy efficiency, workplace relations support and wellbeing programs and
• Retaining the 20 per cent tax deduction boost for small businesses to upskill employees and embrace new technology as well as the instant asset write off for small and medium businesses.

Infrastructure

• Delivering a $10 billion investment into the Housing Australia Future Fund, which will provide 50,000 affordable and social homes via this fund and the national Housing Accord;
• $2.2 billion funding for the Suburban Rail Loop;
• $500 million to reduce transport emissions, including electric vehicle charging stations and government fleet purchases of 75 per cent electric vehicles;
• Rewiring the Nation, with $20 billion in low-cost finance to make upgrades to the electricity grid, including the Marinus Link between Tasmania and Victoria and
• $2.4 billion expansion of the NBN over the next four years to boost to digital capability.

Mr Guerra said: “Funding for industry development and infrastructure also feature which will help to propel Victoria’s economy, especially in emerging and established industries and the renewables sector.

We’re pleased to see support for the tourism industry included in this Budget to aid its recovery. A significant $171.6 million over four years to support Australia trade and tourism, including initiatives to support recruitment and marketing in the tourism and travel sectors.

The Victorian Chamber had hoped for support for an intermodal freight terminal in Western Melbourne, the expansion of the Export Market Development Grant (EDMG) as well as creating a Tourism Resilience Fund for our visitor economy. These are key for Victorian industries and we are optimistic that they will be funded in the future.

Mr Guerra said: “This Budget is a reasonable start, but the Government must continue to prioritise funding that will help improve business conditions as Australia faces multiple economic constraints, both domestic and abroad.”

The Victorian Chamber's full Budget overview can be found on our State and Federal Budgets page.