On Tuesday 12 May, the Treasurer of Australia, Jim Chalmers, handed down his fifth Federal Budget. The Budget focused on easing cost-of-living pressures, strengthening the economy, supporting workforce participation, and building a more sustainable fiscal position.

Key announcements relevant to SaCSA’s stakeholders include:

• $85.2 million to accelerate skills assessments and occupational licensing for migrant trades workers, supporting workforce mobility and addressing skills shortages.

• Reforms to Australia’s permanent migration points test to prioritise younger, higher-skilled and better educated migrants.

• $361.1 million over five years from 2025–26 to improve employment services and support Australians into work.

• $35.2 million over four years from 2026–27 for Jobs and Skills Australia (JSA) to continue providing advice on Australia’s labour market and skills needs.

• $110.2 million over five years from 2025–26 to strengthen Australia’s tourism, trade and investment opportunities, including support for tourism small businesses through the Australian Tourism Industry Council’s Quality Tourism Framework.

• $14 million for Creative Australia to continue implementing the National Cultural Policy Revive, including new programs for Music Australia and First Nations Arts.

• $8.2 million over three years from 2025–26 to extend the Small Business Debt Helpline and NewAccess mental health coaching program for small business owners.

 

Further information on the key announcements can be found below: 

Skills and Training 

The Government will invest $85.2 million to accelerate skills assessments for migrant trades workers and support faster occupational licensing processes.

The Government is also reforming the permanent migration points test to prioritise higher-skilled, younger and better educated migrants.

University students with relevant TAFE qualifications will benefit from faster degree pathways through a new National Credit Recognition Framework.

$9.4 million over four years from 2026–27 will be provided to TEQSA to strengthen enforcement and monitoring powers where intervention is required.

Employment & Workplace Relations

The Government will achieve savings of $297.9 million over five years from 2025–26 through changes to apprenticeship supports and the redirection of uncommitted funding across Employment and Workplace Relations programs.

This includes:

• $266.2 million over four years from 2026–27 through reforms to the Australian Apprenticeships Incentive System, with a stronger focus on small and medium employers and Group Training Organisations.

• $25.3 million over four years from 2025–26 through the return of uncommitted National Skills Agreement funding.

The Government will also provide $361.1 million over five years from 2025–26 to improve employment services and participant experience, including:

• $285.6 million over five years from 2025–26 to support employment services reform and system improvements.

• $35.2 million over four years from 2026–27 for Jobs and Skills Australia to continue advising on labour market and skills priorities.

• $1.5 million in 2026–27 for ASQA to continue compliance activity addressing integrity issues in the VET sector.

Tourism

The Passenger Movement Charge will increase by $10 from 1 January 2027, rising from $70 to $80 per passenger.

The Government will provide:

• $5 million in 2026–27 to continue reef monitoring, protection and stewardship activities through the Tourism Reef Protection Initiative.

• $110.2 million over five years from 2025–26 to strengthen tourism, trade and investment opportunities.

This includes:

• $39.6 million over three years from 2026–27 to enhance Austrade’s support for Australian businesses.

• $2 million over two years from 2026–27 for the Australian Tourism Industry Council’s Quality Tourism Framework supporting tourism SMEs.

Arts & Creative Industries

The Government will provide $14 million for Creative Australia to continue implementation of the National Cultural Policy Revive, including support for Music Australia and First Nations Arts initiatives.

Additional funding includes:

• $10.1 million over two years from 2026–27 for safety-related repairs at the Australian National Maritime Museum.

• $9.9 million over three years from 2026–27 to expand the National Film and Sound Archive’s storage and preservation capacity.

• $3 million in 2026–27 for commemorative activities marking the centenary of Old Parliament House.

As always, SaCSA will endeavour to keep our stakeholders informed on government and policy decisions impacting our sectors. 

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Author: Shane Kocass, Policy & Government Relations Advisor at SaCSA, analyses government policies, fosters meaningful engagement with government stakeholders, and assists in navigating the complex policy landscape to drive impactful outcomes.