CANBERRA (CU)_The federal government of Australia recently unveiled its budget, in which cost of living relief took centre stage, while some of the noteworthy spending items included investigation of war crimes in Afghanistan, funding for the ATO’s tax avoidance task force, tax-free booze for diplomats, the establishment of an Office of Parliamentarian Staffing and Culture (OPSC) and an Independent Parliamentary Standards Commission, among others. Meanwhile, hundreds of millions of dollars have also been earmarked by the government to boost local manufacturing, on which Treasurer Josh Frydenberg commented in his budget speech
“COVID and events in Ukraine have been a powerful reminder that we must increase our self-reliance,” he said. “A modern resilient manufacturing sector is part of our plan for a stronger future.” Previously, Canberra committed $1.3 billion in spending through its Modern Manufacturing Initiative (MMI), over five years from 2020-21. The initiative is aimed at strengthening local manufacturing capabilities in six critical industries, namely medical products, food and beverage, recycling and clean energy, defence, resources technology and critical minerals processing and space.
In the 2022 federal budget another $250 million was allocated towards the MMI, to support “high-impact” projects over two years from 2022-23. A further $500 million will be spent on regional manufacturing projects and an extra 200 million to help regional businesses tackle “supply chain vulnerabilities”. According to Finance Minister Simon Birmingham, the budget signals a shift in focus to key supply chains, energy security, advanced modern manufacturing, export infrastructure and the critical minerals industry.
Canberra has already confirmed that an agreement has been reached with pharmaceutical and biotechnology company Moderna to set up an mRNA vaccine manufacturing plant in the state of Victoria. The project would provide Australians with increased access to vaccines, thereby making the country more prepared for potential future pandemics, the government said.
