Federal Budget 2023-24

IN A CHALLENGING economic climate that has seen many Australians grappling with pressure from rising interest rates and living costs, Australian Treasurer Jim Chalmers has handed down the 2023-24 Federal Budget.

Key announcements:

• Assistance with cost of living: $14.6 billion package includes a range of payments for low- and middle-income families including energy bill savings, cheaper medicines, modest increases to JobSeeker and rent assistance

• Dedicated women’s budget statement: Explores factors influencing women’s economic equality and outlines key measures to advance gender equality in Australia – focusing on achieving economic equality, ending violence against women, increasing women’s representation in leadership and decision-making and improving women’s health and wellbeing

• Significant funds towards the climate transition: More funding was allocated towards climate action than originally expected. This includes $2.0 billion for the establishment of a new Hydrogen Headstart program and $1.3 billion in funding to establish the Household Energy Upgrades Fund to support home upgrades that improve energy performance and save energy

• Defence funding to increase beyond the forward estimates: The cost of the Defence Strategic Review means an increase in spending over the medium term, with Defence spending expected to rise above 2.3% of GDP in 2032-33

• Stronger budget position: The structural budget deficit is expected to be 0.5% of GDP in 2032-33, compared to 2.0% in the October budget. Lower NDIS and interest costs mean there has been a very substantial improvement in the budget bottom line over the next decade.

Deloitte’s Budget Digest (click here) provides an excellent snapshot of the proposals and what they could mean for your finances and lifestyle.  Keep in mind, many of these proposals could change as legislation passes through parliament.