While Treasurer Jim Chalmers’ midyear economic and fiscal outlook (MYEFO) lacked the grand announcements of a mini-budget, a deeper dive into the 363 pages reveals several eyebrow-raising measures that slipped under the radar. From fee hikes for international students to funding boosts aimed at combating misleading election ads, the MYEFO had more than a few surprises up its sleeve.
International Students Face Visa Fee Hikes
In a move that may dampen Australia’s appeal as a study destination, the government has announced a 14.75% increase in fees for temporary graduate visas starting from February 1st. This comes on the heels of last year’s hefty rise in international student visa fees from $710 to $1,600. The MYEFO papers project this measure will rake in an additional $1.7 billion over the next five years.
Crackdown on “Misleading” Election Ads
With the next federal election looming, the Labor government is allocating $25.1 million over four years to clamp down on “misleading or incorrect” content in electoral communications and political advertising. This funding boost aims to ensure voters receive accurate information and to prevent the spread of misinformation during campaign season.
Preparing Parents and Teachers for Social Media Ban
To pave the way for the controversial social media ban for under-16s set to take effect in November 2025, the government has earmarked $10 million over two years for a national public education campaign. The initiative will target parents, young people, and educators to help them navigate the new restrictions. An additional $76.1 million over four years has been allocated to implement and enforce the ban, with the eSafety Commissioner receiving the lion’s share to oversee compliance by tech giants.
Reprieve for Commercial Broadcasters
In a win for free-to-air networks, particularly Channel Seven which led the lobbying charge, the government will suspend the commercial broadcasting tax for television and radio broadcasters for a one-year period starting June 9th, 2025. Meanwhile, the ABC will enjoy an $83.1 million funding injection over two years to bolster its television, radio, and digital services.
Innovative Places Program Gets the Axe
The government is pulling the plug on the “Innovative Places” program, which provided Commonwealth-supported spots in bachelor-level courses deemed national priorities. Winding up the program by the end of 2026 is expected to save $107 million over four years, and a whopping $491 million in the decade that follows.
No More R&D Perks for Gambling and Tobacco
Starting July 1st, 2024, gambling and tobacco-related activities will no longer be eligible for the Research and Development tax incentive, which offers generous concessions to spur corporate growth and innovation. The MYEFO papers justify the exclusion, stating that gambling R&D “can exacerbate addiction and associated harms, while activities related to tobacco can increase health risks.” The government is making it clear it will not subsidize research in these controversial industries going forward.
While these measures may have flown under the radar amid the deluge of economic data, they signal significant policy shifts that will have far-reaching impacts on key sectors and stakeholders. As always, the devil is in the detail – and this MYEFO had plenty of devilish surprises lurking in its pages. As the dust settles, Australians will be closely watching how these changes play out in the months and years ahead.
