Australian Commonwealth Coat of Arms

Media release

with the Hon Simon Crean MP, Minister for Trade

13 May 2008

Foreign Affairs and Trade Portfolio - Budget 2008-09

In the 2008-09 Budget, the Government has announced a number of measures to advance the interests of Australia and Australians internationally. 

The 2008-09 Budget represents the first step in implementing the Government’s election commitment to increase Australia’s level of Official Development Assistance (ODA) to 0.5 per cent of Gross National Income (GNI) by 2015-16. The Government will provide $3.7 billion in 2008‑09 for development assistance, increasing Australia’s ratio of ODA to GNI from 0.30 per cent in 2007‑08 to 0.32 per cent in 2008‑09.  Furthermore, the Government expects to increase Australia’s ODA to levels equivalent to 0.35 per cent of GNI in 2009‑10, 0.37 per cent of GNI in 2010‑11 and 0.38 per cent of GNI in 2011‑12. 

The new package of measures contained in this Budget will sharpen the focus of Australia’s development assistance program on practical development outcomes and improved quality of life. The 2008-09 Budget demonstrates the Government’s commitment to making faster progress towards the Millennium Development Goals (MDGs) and meeting the needs of the most vulnerable. 

The 2008-09 Budget will boost global efforts to fight poverty through strengthened partnerships with key United Nations development agencies: additional Australian core funding of $200 million over four years will support agencies’ leadership of efforts to realise the MDGs. The Budget will confront the global challenge of climate change through a three year, $150 million program to help meet the climate adaptation needs of vulnerable communities. To ensure the benefits of development reach the most vulnerable, other major new programs will promote improved access to clean water and sanitation ($300 million over three years) for the poor, expand humanitarian and reconstruction assistance to Iraq ($140 million over three years) and support practical efforts to fight avoidable blindness ($45 million over two years). 

New Pacific Partnerships for Development will target faster progress towards the MDGs in the Pacific including through new programs focusing on infrastructure development, land administration and public sector capacity building.

The Government will provide an additional $50 million to the Export Market Development Grants (EMDG) scheme in 2009-10 as part of its commitment to revitalise and update the scheme.  This increased funding will ensure the scheme is able to provide greater support to Australian exporters entering new markets.  Funding levels beyond 2009-10 will be determined in light of the Government’s Review of Export Policy and Programs.

The Government will provide $61 million over three years towards Australia’s participation in World Expo 2010 in Shanghai, expected to be the largest world expo ever held.  Australia’s contribution will showcase positive images of contemporary Australia and highlight to China, our largest trading partner, the capabilities of Australian business.

The funding will contribute to the construction and operation of the Australian pavilion and management of associated business, cultural and communications programs. The Government will also seek an estimated $22 million in additional funding through corporate sponsorships and partnerships with the states and territories.

As part of the Government’s election commitment of a sustained Australian contribution to the international effort to stabilise Afghanistan, the Government will provide additional funding of $25.6 million to enhance Australia’s engagement with Afghanistan, bringing the total contribution to this measure to $39.3 million over two years.

This funding will enable the Australian Embassy in Kabul to continue to provide diplomatic support for the Australian Defence Force’s deployment in Afghanistan and for other Australian Government agencies deployed in Afghanistan, as well as to further strengthen our engagement with the Afghan Government. The funding includes provision for a feasibility study to guide the Government’s decision making on securing long-term accommodation for the Australian Embassy in Kabul. In addition, the funding will allow the Government to strengthen cooperation with Pakistani authorities on counter-terrorism through increased diplomatic representation in the Australian High Commission in Islamabad. 

The Government has decided to increase application fees for passports. With effect from 1 July 2008, the application fee for an adult passport will rise from $200 to $208.  All other categories of passport fees will also increase.   

In 2008-09 the Government will conduct a functional review of the Department of Foreign Affairs and Trade to ensure the Department’s resources and structure are consistent with the Government’s foreign and trade policy priorities. The results of the review will be considered in the Budget context.

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