“COVID and events in Ukraine have been a powerful reminder that we must increase our self-reliance,” commented Treasurer Josh Frydenberg, highlighting a key focus on local manufacturing in the 2022 Federal Budget.
The federal budget has put a continued focus on manufacturing in Australia, with an extra $250 million allocated to the Modern Manufacturing Initiative (MMI) over 2022-2023.
The goal of this initiative is to boost local manufacturing throughout six key industries:
- Resources technology and critical minerals processing
- Food and beverage
- Medical products
- Recycling and clean energy
This funding is in addition to the $1.3 billion commitment over the next five years, including a range of grants for manufacturing growth and development which have been utilised through 2021 & 2022.
On top of this the government will also invest $700 million into regional manufacturing with $500 million committed to the Regional Accelerator program, and $200 million focused on supply chain vulnerabilities.
It is clear to see the reaction to global changes over the past 24 months, with the vulnerability of global trade and the potential for future covid outbreaks threatening the industry.
Morrison commented that “A resilient and competitive manufacturing sector should be at the heart of a modern Australian economy and this Strategy will create jobs, drive our economy forward and make Australia more secure.”
Recycling was also touched on in the budget, with spend ($8.2 million over four years) allocated to set up a ‘ReMade in Australia’ brand for products made from Australian recycling.
The government also addressed low female participation in manufacturing jobs (29%), committing $4.7 million (2022 – 2027) to encourage women to consider carers in manufacturing, with some of this funding used on a “Women in Manufacturing” event series in regional areas and a mentorship program.