Authorised by Chris StoneLiberal Party of Australia, NSW DivisionLevel 2, 131 Macquarie StreetSydney NSW 2000Phone: (02) 8356 0300
Only the Coalition Government has a plan for Australians to make more of what we need in Australia.
By building a strong and sovereign manufacturing sector, we’re building a stronger and more resilient economy and a stronger future.
Manufacturing is already a major contributor to our economy, generating over $113 billion in value in 2020-21 and more than $50 billion in exports. Manufacturing accounts for about a quarter of national research and development investment.
With our Modern Manufacturing Strategy, the Coalition is expanding and modernising Australia’s sovereign manufacturing capability, securing supply chains and investing in the skills and world-class research needed by our manufacturing businesses.
Our Strategy is strongly focused on our regions, home to around 30 per cent of manufacturing jobs.
During the pandemic, Australia’s manufacturers helped keep our economy moving and our population safe. It was an extraordinary and wide-ranging effort – from producing medical equipment to securing supplies of fertiliser; from keeping supermarket shelves stocked to building our defence force capabilities. A strong, flexible and competitive manufacturing sector is needed to respond to future shocks in increasingly uncertain times.
A re-elected Coalition Government will:
Under our Modern Manufacturing Strategy, an additional 3,300 manufacturing businesses have been created in Australia since 2019; manufacturing business turnover is increasing and is at its highest level since 2010 and manufacturing businesses are more profitable. More than 220,000 trade apprentices are in training (the most since records began in 1963); and manufacturing represents around a quarter of merchandise exports.
Labor would weaken our manufacturing sector by making Australia a harder place to do business.
Labor voted against tax relief for small and medium businesses and promised $387 billion of extra taxes at the 2019 election.
Under Labor, electricity prices doubled.
Labor and the Greens now want to punish Australia’s 212 largest manufacturers and energy-using businesses with higher electricity costs and billions of dollars of carbon credits – putting jobs at risk.
Labor’s Safeguard Mechanism is nothing but a sneaky carbon price that would raise electricity prices and hurt manufacturers.
Labor has no plan for the essentials of manufacturing like reliable generation and gas.
Labor would put the unions back in charge and make Australian industry less competitive.
This would push Australian manufacturing jobs offshore, which is exactly what happened last time labor was in office and one in eight manufacturing jobs disappeared.
Under Labor, manufacturing’s contribution to GDP fell by $7 billion and 6,800 manufacturing businesses closed their doors. Labor gutted the Defence budget, slashing more than $18 billion and failing to commission a single Australian-built ship.
Under our Modern Manufacturing Strategy, the Coalition Government is investing $2.5 billion to drive growth and innovation in our manufacturing sector. The Strategy is based on four key principles:
Our overarching economic plan is also a plan for Australian manufacturers, helping them toexpand and modernise Australia’s sovereign manufacturing capability, secure supply chains, and invest in the skills and world-class research needed by our manufacturing businesses.
Our economic plan includes:
The 2022-23 Budget backs our manufacturers with new investments in sovereign manufacturing, research commercialisation and supply chain resilience. More than 90 per cent of Australian manufacturing companies are small businesses, and the Budget includes new incentives for them to embrace the digital economy and retain and upskill employees.
A modern, resilient manufacturing sector is a part of our plan for a stronger future.
Our Modern Manufacturing Strategy announced in the 2021-22 Budget is transforming Australia’s manufacturing sector. We’re helping manufacturers transition to higher-value activities, which is driving economic growth and creating jobs.
Our Modern Manufacturing Initiative is playing to our strengths. It is a plan to build competitiveness and scale in key sectors. It aligns policies and investment around six National Manufacturing Priorities:
In the 2022-23 Budget, the Morrison Government committed an additional $1 billion to the Modern Manufacturing Strategy, including an extra $750 million for the Modern Manufacturing Initiative to support high-impact manufacturing projects and turbocharge private sector investment. A further $50 million will be invested to help small and medium businesses to adopt new technologies so they can scale up, grow and compete internationally.
These new investments include $500 million under our $2 billion Regional Accelerator Program to expand the Modern Manufacturing Initiative with new rounds focused on regional manufacturing.
The Modern Manufacturing Initiative is helping manufacturing businesses to increase productivity and capacity, translate ideas into commercial success and integrate into local and international value chains.Since 2020, we have committed $1.5 billion under the Modern Manufacturing Strategy to fund over 250 transformational projects, leveraging over $3.5 billion of co-investment across our six National Manufacturing Priorities.Under the Modern Manufacturing Initiative Translation and Integration Stream Round Two, more than $290 million is being invested in 50 new manufacturing projects across our National Manufacturing Priority areas.
Over the next 12 months, the Morrison Government will also work with industry to guide further long-term investment by finalising Manufacturing Investment Plans for the priority sectors. These Plans will outline the concrete steps towards each sector reaching its full potential.
During the pandemic, Australian manufacturers stepped up to help keep our economy moving.The Morrison Government is ramping up our sovereign manufacturing capability as part of our plan for a strong and more resilient economy and a stronger future.
Major strategic investments include:
Our historic $270 billion Defence investment in state-of-the-art land and sea transport, weaponry and equipment is supporting the manufacture of more than 1,300 armoured vehicles in Queensland and Victoria. In Western Australia and South Australia, we are building or upgrading more than 70 new naval vessels. And in the first major initiative under AUKUS, at least eight nuclear powered submarines will be built in South Australia.
The Government’s Critical Minerals Strategy is helping to de-risk projects vital to the manufacture of mobile phones, flat screen monitors, batteries, wind turbines, electric cars, solar panels and many other high-tech applications.
Resilient supply chains underpin Australia’s prosperity, resilience and national security.The ongoing effects of the pandemic, war in Europe, natural disasters and rising geopolitical and trade tensions continue to expose our economy to supply chain risks and vulnerabilities.
The Morrison Government is building Australia’s resilience to supply chain disruptions while acting to embed Australia in critical global supply chains.The Government’s Sovereign Manufacturing Capability Plan outlines potential supply chain vulnerabilities for critical products.An expanded Supply Chain Resilience Initiative, with a total investment of $307 million, is providing grant funding to establish or scale manufacturing capability to address vulnerabilities identified in the supply chains of critical products.
The Morrison Government is making record investments to boost research and development, encourage businesses to commercialise innovations in Australia, and create high-paid jobs.Our $2.2 billion University Research Commercialisation Action Plan is aligning our best researchers with our National Manufacturing Priorities, underpinned by a $1.6 billion investment over 10 years in Australia’s Economic Accelerator.
A further $362 million will be invested in the Trailblazer Universities program to drive commercialisation with industry partners. A $150 million expansion of CSIRO’s Main Sequence Ventures program will back start-up companies and help create even more commercial opportunities from Australian research.
The Research and Development Tax Incentive continues to provide around $2.5 billion in benefits to around 11,000 businesses across the country each year.In addition, our Patent Box provides a concessional tax rate of 17 per cent for businesses that undertake R&D and commercialise their innovation in Australia. The Patent Box will be expanded from medical and biotech innovation to cover agriculture and low emission innovations.
The Morrison Government is also investing $69 million in a new Sovereign Manufacturing Automation for Composites Cooperative Research Centre.We are continuing to back CSIRO, with our total investment increasing to $3.8 billion over four years from 2020-21.
A re-elected Coalition Government will invest:
Over 30 per cent of Australia’s manufacturing jobs are in regional areas. Manufacturing is particularly important to regional economies like the Hunter in New South Wales, north and central Queensland, Tasmania, South Australia and regional Victoria.
Regional manufacturing has high-growth potential and comparative advantages in several of our National Manufacturing Priorities, including resources technology and critical minerals processing and food and beverage manufacturing.
The Modern Manufacturing Strategy, Energy Security and Regional Development Plan and Regional Accelerator will continue to make targeted investments to accelerate economic growth and job creation in our regions.
We’re also investing in regional Trailblazer universities to build new research capabilities and engage with industry on the National Manufacturing Priorities.
We are extending support for small and medium businesses to reduce energy costs with an additional $60 million under the Powering Business program and an additional $17.9 million to the Business Energy Advice program.
A strong and modern manufacturing sector needs a strong and skilled workforce.
To create a pipeline of skilled workers for the future, we are investing a further $2.8 billion to upskill apprentices, including introducing a new streamlined Australian Apprenticeships Incentive System. New apprentices will receive $5,000 payments and businesses who take them on will receive up to $15,000 in wage subsidies. A record 220,000 Australians are now in trade apprenticeships – the most since records began in 1963.
We continue to support national skills reform, investing $3.7 billion to support an additional 800,000 training places. The 2022-23 Budget also provides new support for small manufacturing businesses to upskill employees. Businesses with a turnover of less than $50 million can now access a 20 per cent bonus tax deduction on the costs of external employee training.
The Coalition is investing in a Manufacturing Workforce Strategy to address manufacturing skills gaps and future needs, while showcasing the exciting career opportunities in modern manufacturing.
And we are investing $4.7 million to encourage more women to build careers in manufacturing, by establishing an annual networking event series, and associated mentorship program, for women in manufacturing.
Support for businesses during the pandemic
Labor’s approach to Australian manufacturing is all over the shop.
Labor’s magic pudding of a National Reconstruction Fund has more than 30 top priorities, with the first funding confirmed a $6 million grant to the CFMMEU.
Labor has no plan to ensure Australian manufacturers have access to affordable, reliable gas and no plan to keep energy bills down.
Labor and the Greens will introduce a sneaky carbon price on 212 of Australia’s largest manufacturers and energy users.
Before the last election, Labor voted against tax cuts for our hard-working small and medium businesses.
Labor’s Shadow Treasurer said he was “proud to oppose [them]” and that small and medium business tax cuts “were not worth the money”.
Labor’s Shadow Finance Minister called tax cuts for small and medium business owners “an absolute disgrace”.
At the last election, Labor promised $387 billion in new taxes.
Labor gutted the Defence budget, slashing more than $18 billion from Defence and failing to commission a single Australian-built ship.
Instead of investing in new scientific breakthroughs such as Moderna’s mRNA facility in Melbourne, Labor’s only major policies during the pandemic were $300 payments to get vaccinated (total cost $6 billion) and rapid antigen tests irrespective of need (total cost $13 billion).
Labor can’t say how they’ll pay for their promises. And they can’t manage money. That means higher deficits and higher taxes.
Labor has no plan for Australian manufacturing.
In uncertain times, Australia can’t risk Labor.
Nationally, power prices have fallen more than 10 per cent since December 2018.
Electricity prices are 8 per cent lower for households and up to 12 per cent lower for businesses than two years ago.
Electricity prices doubled under Labor.
3,300 more manufacturing businesses since the last election.
6,800 manufacturing businesses shut in Labor’s last term.
Labor’s National Reconstruction Fund couldforce employers to meet union wishlists to be eligible for funding.
Manufacturing in the economy
Manufacturing’s contribution to GDP has increased by $13.5 billion since 2013.
Manufacturing’s contribution to GDP collapsed by $7 billion over their time in office.
Record trade apprentices in training and record investment in skills and training.
Over 110,000 apprentices lost in a single year.Over $1.2 billion cut to training in their last term in office.
Labor’s failed VET FEE-HELP scheme opened the sector to rorting by dodgy and unscrupulous providers. labor’s mess has seen student debt re-credits of $3.3 billion, which could reach as high as $4.6 billion
Delivered more export opportunities through 16 free trade agreements.
Value of manufacturing exports increased by $34.1 billion since 2013.
Manufacturing exports fell by $6 billion between 2008 and 2013.
Supporting small business
Cut the SME Company Tax Rate to 25 per cent.
Introduced the Small Business Income Tax Offset.
Expanded Tax Concessions for SMEs.
Stood against tax cuts for small and medium businesses.
Abolished the Entrepreneurs Tax Offset.
Supporting more than 22,000 innovative Australian businesses through the Entrepreneurs’ Programme with more than $500 million invested.
Planned to cut $300 million from innovation programs, including the Entrepreneurs’ Programme in 2019 with no alternative policy.
Funding for the policies in the Coalition’s Plan for Modern Manufacturing is already provided for within Budget estimates.
Authorised by Chris StoneLiberal Party of Australia, NSW DivisionLevel 2, 131 Macquarie StreetSydney NSW 2000Phone: (02) 8356 0300
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