How the budget is tackling climate change: Price cuts on electric cars, cheaper insurance in disaster-prone areas

A hefty $1.2 billion package to restore the Great Barrier Reef and price cuts on electric cars led a raft of climate and energy initiatives in the second federal budget of 2022.

Environment Minister Tanya Plibersek described the packages as "a down payment on strong action".

"We don't have time to waste if we are going to reverse the decline," she said.

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Labor is continuing its push toward expanding Australia's renewable energy sector, pledging a grid made up of 82 per cent renewables by 2030.

A $500 million Driving the Nation Fund will aim to drive down transport emissions, including by including charging stations for electric cars at 117 highway sites around the country.

A $345 million electric car discount will exempt eligible cars from the fringe benefits tax, and the five per cent import tariffs.

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This would save an employer up to $9000 a year on a $50,000 car, or $4700 for a person using a salary sacrifice arrangement.

Any electric car buyer could also save $2500 from the axing of the tariff.

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Hundreds of millions in disaster preparation

The government noted that the most recent floods across Australia's south-east would knock off 0.25 per cent from GDP growth in the December quarter - not to mention the damage done to communities and people.

As well as $3 billion in place for disaster recovery, the government will look to bring in 5000 more volunteers for Disaster Relief Australia with an investment of $38.3 million.

Up to $200 million a year will go to projects such as flood levees, sea walls, cyclone shelters, evacuation centres and fire breaks.

A $22.6 million investment over four years will also go towards reducing the cost of insurance in disaster-prone communities.

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Record investment in reef care

The $1.2 billion for the reef is described as a record investment, with projects aiming to minimise the impact of commercial fishing, enhance water monitoring and accelerate the restoration of the ecosystem.

The government also aims to add about 4.8 million hectares to Australians natural reserves, rendering them protected territory.

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A further $224.5 million will be dedicated to saving threatened native species.

The government has set a target of protecting 30 per cent of Australia's land and oceans by 2030, with $14.7 million going to First Nations-led action to identify sites at risk.