Federal budget: what we know alreadyMay 8, 2023
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Treasurer Jim Chalmers says responsible cost of living relief will be the centrepiece of his second budget, to be released on Tuesday.
“We’re confident what we’ve done here is provided some cost of living relief for people doing it tough, but conscious that we’ve got this inflationary challenge in our economy,” he said on ABC Radio National Breakfast on Monday morning.
Budget documents hot off the press. Treasurer Jim Chalmers will hand down the budget on Tuesday evening.Credit: Alex Ellinghausen
“We need to be responsible about what we spend, and that’s what we’ve done.”
The federal government’s cost of living package will total $14.6 billion over the next four years, and Chalmers will unveil all the details of that package and the rest of the budget at 7.30pm on Tuesday.
Until then, here are some of the big announcements they’ve already made, and key details that will shape the budget.
Cost of living
- Targeted energy bill assistance – funding for direct energy bill discounts to be matched by states and territories for vulnerable households that receive income support payments such as the pension.
- JobSeeker payment increase – a possible increase for all recipients, but likely to rise for those aged over 55.
- Extension of single parenting payment, $1.9 billion – single parents will be able to stay on the higher single parenting payment for a further six years after the government announced it was raising the cutoff age for the youngest child from eight to 14.
Health and aged care
- Aged care worker pay rise, $14.1 billion – Funds a 15 per cent pay rise for aged care workers from July 1, and accounts for indexation, leave entitlements and superannuation.
Treasurer Jim Chalmers and Minister for Aged Care Anika Wells speak with employees at Goodwin Village in Canberra following the announced aged care worker payrise.Credit: Alex Ellinghausen
- Medicare overhaul, $2.2 billion – the overhaul will give pharmacists and nurses a greater role in the health system and include new funding streams for GPs. The $2.2 billion includes the $750 million announced in the October budget to strengthen Medicare.
- Protecting Australians against harms from vaping and tobacco, $737 million – includes $264 million for a national lung cancer screening program, $239 million for First Nations cancer care services, $141 million for the tackling Indigenous smoking program, $63 million for a vaping and smoking public health information campaign and $30 million for quit programs.
- National Disability Insurance Scheme, $720 million – funding for National Disability Insurance Agency to boost its capacity and workforce, and improve the overall scheme.
- Long COVID research, $50 million – grant applications for the long COVID research funding will open in August.
- National institutions, $535 million – Money to keep institutions afloat, and includes $119 million for the National Gallery, $76 million for the National Museum of Australia, and $36.5 for the National Archives of Australia.
- Hobart AFL stadium, $240 million – a co-investment with the state government, funding for the Macquarie Point precinct will also go to housing.
- UTAS Launceston stadium, $65 million – joint investment with the Tasmanian government to redevelop the stadium.
- Questacon, $60 million – funding for the ongoing future of the institution.
Director of Questacon Jo White, Member for Canberra Alicia Payne, Finance Minister Katy Gallagher, Minister for Industry and Science Ed Husic announcing the additional funding for the institution on May 1.Credit: Alex Ellinghausen
Energy and Climate
- Small business energy bill relief, $314 million – to help up to 3.8 million small and medium-sized businesses save on energy bills through greater tax deductions for spending that support more efficient use of energy.
- Creation of the National Net Zero Authority – the authority will help workers and companies in heavily polluting industries like coal, gas or manufacturing to find new jobs in emerging cleaner industries like renewable energy will be backed by $400 million from the existing $1.9 billion Powering the Regions Fund.
- Commonwealth national parks, $262 million – money for updating facilities and improving tourist infrastructure at national parks including Kakadu and Uluru-Kata Tjuta.
- Australian Institute of Marine Science, $163.4 million – to refurbish the agency’s Townsville headquarters, and fund equipment including a new research vessel.
- Electric vehicles, $146.1 million – to support electric vehicle uptake, including funding for electric vehicles charging infrastructure.
- Protecting marine habitats and wildlife, $14.8 million – includes funding to remove abandoned fishing gear.
- Response to Defence Strategic Review, $19 billion – includes investment in long-range missiles. Funding is already baked into the budget bottom line.
Early Childhood Education and Care
- Worker training, $72.6 million – support for backfilling positions while workers undergo training, with a focus on reskilling and training particularly in regional and remote areas.
- New centres in childcare deserts, $18 million – grants of up to $900,000 to establish new early childhood education and care facilities in areas of limited supply.
Extra revenue, new savings
- Savings from existing programs, $17.8 billion – includes savings from $7.8 billion in Defence spending.
- Drop in interest bill, $10 billion – Lower global interest rates and higher revenue has helped shave $10 billion off the interest bill on government debt.
- Tobacco excise, $3.3 billion – increasing the tax on tobacco and cigarettes by 15.8 per cent is expected to raise $3.3 billion over three years.
- Superannuation tax change, $3.2 billion – lifting the tax on superannuation earnings for balances over $3 million, from 15 per cent to 30 per cent.
- Petroleum Resources Rent Tax reform, $2.4 billion – additional revenue from changing PRRT, paid by offshore petroleum and gas companies.
With Natassia Chrysanthos, Mike Foley
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