May 2023 E-Newsletter

With the May Budget fast approaching, I thought I’d give you a quick summary of some of the key announcements that have been made so far, with further detail to come post-delivery.

Health  
We are following the recommendations of the Pharmaceutical Benefits Advisory Committee (PBAC) to extend dispensing of 325 medicines from 30 days to 60 days at the discretion of your doctor. This recommendation was first floated in 2018 but was not adopted by the previous government.

It is estimated that patients will now be able to save $180 per year per medicine, with average annual visits to the pharmacy reduced from 12 to just 6. My constituents have welcomed this change for its convenience and significant cost of living benefits.

There have been a range of concerns raised by the pharmacy sector regarding the changes made. However, given the growing pressures on general practice, it is important that we broaden the scope of practice of our pharmacists, nurses and allied health professionals.

To that end, we have announced $350 million to enable pharmacists to better manage medicines in aged care, and in the last 24 hours we have announced that pharmacists will be able to administer all vaccines on the National Immunisation Program - adding further convenience for people off the back of their successful roll-out of COVID vaccinations.

Further, over the past 3 months (January to March) Higgins constituents have saved $546,963 thanks to the Albanese Government introducing the largest cut to the cost of medicines in Medicare’s 75 year history.

Housing
Our landmark Housing Australia Future Fund (HAFF) - a $10 billion investment in social and affordable rental accommodation - passed the lower house and is currently delayed in the Senate. It will deliver 30,000 homes in the first 5 years and then into perpetuity, ensuring ongoing investment in this priority area. We have released an addition $575 million to get started now given the urgency of this crisis. Of note, the HAFF is not the only lifeboat in the ocean, but is supported by the National Housing Accord, an agreement led by the Treasurer to build 20,000 homes per year over five years with the States.

We have announced $2 billion for more social and affordable rental housing by increasing the National Housing Investment and Finance Corporation’s (NHFIC) liability cap from $5.5 billion to $7.5 billion from 1 July 2023. We are expanding eligibility for three housing schemes starting on 1 July. These include the First Home Guarantee with its regional and family home equivalents. The definition of a “couple” under these schemes will be relaxed from married or de facto to any two eligible individuals such as siblings, a parent and child or two friends. Permanent residents will be eligible in addition to citizens. People who have previously owned a home will be eligible provided they haven’t owned a home in the past 10 years, supporting those who have fallen out of ownership prospects. The Federal Government will act as the guarantor, allowing people to buy a house with a deposit as low as 5%, thereby avoiding the lenders mortgage insurance.

We are also reforming policy settings in the build-to-rent sector by increasing the depreciation rate from 2.5% to 4% per annum for new projects and we are halving the withholding tax rate from 30% to 15% to incentivise the construction of build-to-rent dwellings by foreign investors. This is estimated to triple dwellings from the 50,000 currently forecast to 150,000 in the next decade. Similar provisions apply to student accommodation, hotels and other commercial property. We are further securing and strengthening renters’ rights, having won agreement with the States and Territories to constrain rental increases.

Small business
The Albanese Government will assist small business to save on energy while lowering their emissions. The May Budget will establish The Small Business Energy Incentive - a bonus tax deduction scheme designed to deliver energy bill savings for up to 3.8 million small and medium-sized businesses and assist them in accelerating their energy transformation. Businesses with a turnover of less than $50 million will be eligible. Up to $100,000 of their total expenditure will be eligible for the incentive, with the maximum bonus tax deduction being $20,000 per business. Eligible assets or upgrades will need to be first used or installed between 1 July 2023 and 30 June 2024. Since March, small and medium businesses have been able to partake in a grants program that provides access to up to $25,000 of assistance to improve on energy efficiency, save on energy bills and lower emissions.

Further government funding is now also available to support small businesses in accessing free mental health and financial counselling services. Over $15 million has been invested in the development of tailored programs to support small business owners’ mental health and wellbeing, including through the New Access for Small Business Owners program and the Small Business Debt Helpline.