Budget 2023: Everything We Know Before Jim Chalmers’ Second Budget

A year into office and inflation still too high, the Albanian government must walk a financial tightrope.

The Treasury Secretary confirmed that the budget is projected to record a “small” surplus of $4 billion for the 2022-2023 fiscal year for the first time in 15 years.

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However, the budget is expected to return to deficit over the next four years, partly due to spending pressures on the National Disability Insurance Scheme, Elderly Care, Health, Defense, and Debt Interest Service.

The Aged Care budget is set to swell to $24.8 billion this year, the Pentagon is trying to repurpose some of the budget, and the government is trying to curb the out-of-control NDIS.

some of the budget measures Over $17 billion in savings and reprioritization.

Here’s what we know about the 2023 budget so far:

Cost of living

Dr Chalmers has pledged a $14.6 billion cost-of-living package over four years to help Australians struggling with mounting pressure without increasing inflationary pressure.

Part of that includes a $1.5 billion power package that will save up to $500 in power bills for over 5 million households and 1 million businesses.

The repackaging of promises, made after the emergency parliament held in December, meant that the amount of money a person would receive would depend on where they live, given that the government had to make separate agreements with each state and territory. Depends on location.

Expect the budget to boast that the government’s decision to intervene in the gas market will moderate gas price increases from 20% to 18% and 4% respectively over the next two years.

There are also electrification packages for low-income households and renters designed to increase energy efficiency and protect households from future price shocks in the energy market.

welfare

Single parents are set to be one of the biggest winners in Tuesday’s budget, with Anthony Albanese announced Monday that more than 57,500 will receive government payments for another six years.

Single parents can receive single parent support until their youngest child is between the current ages of 8 and 14.

The package has a budget of about $1.9 billion by 2026-27, with an increase in payments of $176..90 yen every other week from September 20th.

The prime minister said the figure of eight was “too low” and that the change was an “investment” given that single parents (predominantly women) face difficulties balancing childcare and work. said.

“I know firsthand what it’s like to be a single mother growing up hard. , I want to be able to aim… safe and doing a good job,” he said.

“We want to take care of single parents because they know that the role they play in raising their children is very important to them and they deserve more support. because there is.”

The highly infamous ParentsNext program, which forces parents with young children into parenting programs and job training, or risks losing their payments, will be discontinued.

JobSeeker Australians of all ages are expected to see a ‘moderate’ increase in their fortnightly payouts, not just those over 55.

The Government has made strong proposals that it may increase Commonwealth Rental Assistance within the budget, as is widely requested.

It is not yet known how much the government will raise payments or if there are any requirements for such an increase.

NDIS has become one of the largest burdens of the federal budget. As such, growth will be cut from 13.8% to 8% by mid-2026. The government has set aside $720 million for him to fund necessary reforms to increase staff and cut costs.

Childcare

The government has promised to reduce childcare fees even before its launch, and from July 1, the subsidy rate will be abolished, and 1.2 million households will benefit.

The government pledges $55.31 billion over the next four years to make childcare more affordable.

In addition, the government will invest $72.4 million over five years to support the skills and training of workers in the early childhood education and care sector.

defense

A broad Defense Strategy Review recommended a $19 billion surpass to future estimates to modernize Australia’s defense posture and force, which the government accepted.

Defense Secretary Richard Marls said last week that the $7.8 billion already in the defense budget would be “re-prioritized.”

In terms of personnel, the DSR recommends that by 2040 more than 18,000 additional troops will be needed.

To retain existing employees, the government has already announced a $50,000 bonus for employees who serve for an additional three years after service requirements expire.

The entire program costs over $400 million.

Worker

Millions of Australians could live better off as part of a budget plan that forces employers to pay superannuation on payday instead of withholding quarterly and other payments. can.

Some experts predict young workers will earn $50,000 when they retire.

But it’s not all good news for workers, with more than 10 million Australians missing out on lower and middle income tax relief on incomes below $126,000.

Instead, the government is preparing a so-called “third phase” of tax cuts to begin next year, which will change tax rates and save thousands of high-income earners.

health

In the same way that Australia finally nearly won the war on tobacco, flavored e-cigarettes (vapes) have reared their ugly heads targeting young people.

The government has said this will make e-cigarettes more difficult to obtain and Australians will soon need a prescription from a doctor before buying tasteless e-cigarettes as a smoking cessation treatment only..

Health Minister Mark Butler has announced that the budget will include $234 million to fund the new measures.

To curb smoking more broadly, the government has announced a 5% increase in tobacco taxes. This will generate a total of $3.3 billion in additional revenue over the next three years to help pay for health programs.

Pharmacies will allow up to 6 million Australians to buy double the price of one script as part of a revamped drug benefit scheme.

The government has announced a $50 million investment in the Future of Medical Research Fund, and Covid long-term research will also benefit from the budget.

Medicare rebates will also be extended through June 30, 2025 for heart health assessments to cover heart disease, the nation’s “leading cause of death.”

The budget will include details about the government’s Medicare overhaul.

Aging Care

A growing aging population will continue to put significant pressure on the budget, as care for the elderly will become the fifth largest area of ​​federal government spending.

Costs will rise to an estimated $29.6 billion this year, a jump of 23% from $24.8 billion in 2022.

Rising costs are due to the aging of Australia’s population, with the number of people receiving care for the elderly increasing by 3.5% from 2020-21 to 2021-22, reaching 1.5 million. .

Aged care workers will start receiving a 15% pay raise from July 1, as promised by the Albanian government and decided by the Fair Labor Commission.

It will take $11.3 billion over the next four years to fund an increase of 250,000 workers in the sector.

Costs are recovered by raising the cost of services within the sector.

home buyer

Families and friends who want to buy a home together can have the initial home warranty and overhaul to their local counterparts.

The expansion of this scheme will allow more Australians to access government guarantees. This means you can buy a home with just a 5% deposit and the government guarantees the remaining 15%.

oil and gas

Large oil and gas producers will face tougher tax compliance measures with tax exemptions capped as part of a budget crackdown that the Treasury Department estimates will raise $2.4 billion over four years. increase.

The largest source of revenue among the 16 Tech Petroleum Resource Rental Tax (PRRT) changes is to limit annual deductions for expenditures at 90% of project revenues each year from July 2023.

school

More than 1,300 schools nationwide will benefit from $32 million in grants to upgrade school infrastructure and equipment.

Part of a $250 million effort to improve school infrastructure, the funding will fund new or improved outdoor study areas, new or upgraded air conditioning, improved ventilation, new tablets and laptops, and more. project.

Natural disasters

Cutting-edge technology will be invested in saving lives for Australians living in areas affected by natural disasters.

A nationwide messaging system is expected to be operational by 2024, but the government will not disclose the cost of the program.

The government will spend $10.1 million to establish a task force to set up a new broadband system that will allow all emergency services agencies across jurisdictions to communicate more effectively.

Elsewhere, an additional $4.4 million will go to 83 emergency and flood relief providers in Queensland and Western Australia following recent floods.

environment

The government has committed $150 million to improve the quality of water flowing into the Great Barrier Reef.

And the national parks, including Uluru, will cost an additional $262.3 million.

culture

Australia’s nine ‘National Collecting Agencies’, including the Old Parliament House, the National Archives and the National Portrait Gallery, will receive $535.3 million over four years for urgent repairs and improvements.

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