Treasurer Jim Chalmers has delivered his second budget with a heavy focus on cost-of-living relief for Australians who are struggling due to persistently high inflation and rising interest rates.
While Chalmers says the economy should continue to create jobs and unemployment is expected to remain historically low, inflation remains the top economic concern.
Chalmers says the budget is aimed at providing relief to Australians while trying to prevent adding to inflationary pressures (though some economists have expressed doubts that this will be possible).
The clear highlight of this budget is the government’s $14.6 billion cost-of-living relief spending plan, which includes some of the major measures listed below.
The government is also forecasting a “small surplus” of $4.2 billion in this financial year, the first time it’s been in the black in 15 years.
However, this is expected to be followed by a deficit of $13.9 billion in 2023-24 – and forecasted deficits over the following three years.
Here are five charts to show how the current budget fits in with historic economic trends and other economic indicators.
Following that is a breakdown of notable spending and cuts in the budget across specific portfolios. 
Major measures:
- As part of the government’s cost-of-living relief package, the government will spend:
- $3 billion in energy bill relief, including $500 for eligible households and $650 for small businesses.
- $3.5 billion over five years on a bulk-billing incentive to lower the costs for Australians to see a doctor.
- $2.2 billion over five years to add and update the medications available on the pharmaceutical benefits scheme (PBS).
- $1.9 billion over five years to allow single parents to receive welfare benefits until their youngest child turns 14, instead of the current age of eight.
- $4.9 billion over five years to boost income support payments, including a $40 per fortnight increase for all JobSeeker recipients.
- $2.7 billion over five years in rent assistance to low-income households.
- $11.3 billion to fund a 15% increase in award wages to aged care workers.
- And in other spending:
- $4.5 billion over 10 years to support the initial steps of the AUKUS nuclear submarine project. (Funded through existing defence budget.)
- $3.4 billion over 10 years for investment in infrastructure for the 2032 Brisbane Olympic and Paralympic Games.
- $2 billion in a new Hydrogen Headstart program to support hydrogen energy production.
- And in notable savings:
- $3.8 billion over the next five years through the extension of the GST compliance program.
- $3 billion in revenue over four years by raising the tax on tobacco by 5% per year.
Key cuts and spending by policy area
Defence and foreign affairs
New spending
- Also read:Does the lower inflation figure mean rate cuts are coming soon? | Property Insiders
- Also read:Vacancy Rates Hold Steady at 1.3% | SQM Research
- Also read:Everything you need to know about the state of Australia’s property markets in 20 charts – August 2024
- Also read:How many investment properties do you need to retire?
- Also read:Top 20 professions for Aussie property investors
- $189.6 million over two years in support to Ukraine, including weaponry and infantry training.
- $1.9 billion over five years in enhanced engagement with the Pacific.
- $468.8 million over four years to modernise the Australian Secret Intelligence Service.
- $101.6 million over five years to boost cyber security.
Education
Cuts and revenue
- $139 million will be saved over four years via new moves to safeguard against fraud and non-compliance around the child care subsidy.
New spending
- $72.4 million over five years to support training for early childhood educators.
- $35 million over four years to attract more people to the teaching profession and retain more teachers, including a pilot to test new ways to reduce teachers’ workloads. This is part of the national plan to address the teacher shortage, agreed by the federal and state governments in December 2022.
Environment
Cuts and revenue
- $2.4 billion in savings over four years due to changes to the Petroleum Resource Rent Tax.
- $872.5 million in savings over 11 years by cutting projects in the National Water Grid Fund, including $595 million allocated for the Dungowan Dam.
New spending
- $1 billion over the next four years to strengthen Australia’s biosecurity system.
- $1.3 billion to establish a fund to support home updates that improve energy performance and save energy, including low-cost loans for double glazing and solar panels.
- $741.3 million over five years to support environmental and agricultural programs through the Natural Heritage Trust.
- $355.1 million over four years to protect federal national parks and marine reserves.
First Nations
New spending
- $364.6 million over three years to deliver the referendum on the Voice to Parliament.
- $155.9 million over five years for Central Australia, including $50 million over four years for infrastructure projects and $40.4 million over two years to improve school attendance.
- $1.9 billion over five years towards Closing the Gap measures.
Health and disability
Cuts and revenue
- $1.2 billion over five years in savings by allowing patients to purchase two months worth of certain medications for the price of a single prescription.
- $872.5 million in savings over 11 years by cutting projects in the National Water Grid Fund, including $595 million allocated for the Dungowan Dam.
New spending
- $91.1 million over two years to establish an Australian Centre for Disease Control.
- $827.2 million over five years to improve delivery of aged care and adopt the recommendations of the Royal Commission into Aged Care Quality and Safety.
- $591.3 million over two years to reimburse aged care providers for costs incurred due to COVID outbreaks and extending access to PCR testing in aged care homes.
- $338.7 million over four years to improve the in-home aged care system.
- $556.2 million over five years to strengthen the mental health and suicide prevention system.
- $732.9 million to support the National Disability Insurance Scheme.
Media, culture and the arts
New spending
- $7.7 billion over five years for the ABC and SBS.
- $5 million over two years for the Australian Associated Press.
- $535 million over four years for national institutions including the National Library, National Gallery, National Portrait Gallery and National Archives.
- $286 million over five years on the previously-announced national cultural policy, “Revive”.
Welfare
New spending
- $142 million over five years to continue the national redress scheme for survivors of institutional child sexual abuse.
- $134.5 million in 2023-24 to “sustain” myGov, including maintaining digital credentials.
Women
New spending
- $27.4 million over four years to improve the safety and fairness of workplaces.
- $57.3 million over four years to improve the culture of parliamentary workplaces.
- $589.3 million for women's safety measures.
Guest authors are Chynthia Wijaya-Kovac, Deputy Multimedia Editor, The Conversation and Justin Bergman, Senior Deputy Politics + Society Editor, The Conversation
This article is republished from The Conversation under a Creative Commons license. Read the original article.
