The Federal Budget has been handed down at a pivotal point for our nation’s economy. A “flash” surplus has placed us on strong economic footing yet persistent structural issues remain.
The Budget balances investments in health, cost-of-living relief, and aged care with the need to stimulate productivity without adding to our inflationary pressures.
For our detailed analysis, please read these insights.
A brief return to surplus, with cost-of-living leading the Budget’s agenda
$0bn surplus this year, the first in 15 years - but then a return to deficit of $13.9bn next year
0% predicted inflation, down from 6% this year
0% economic growth expected next year (down from 3.25% this year)
$0bn cost-of-living relief package
Energy transition
$0bnto help provide low‑cost loans for double‑glazing, solar panels and other improvements
$0mto support upgrades to social housing, co-funded and co-designed with the states and territories to improve energy efficiency
$0min tax relief will be delivered via the Small Business Energy Incentive
$0bnfor Hydrogen Headstart, providing revenue support for large-scale renewable hydrogen projects through competitive hydrogen production contracts
$0mfor a Guarantee of Origin scheme, which will certify renewable energy and track and verify emissions from clean energy products – in particular hydrogen
Taxation and reprofiling
$0bnsaved in interest costs over the next 12 years as revenues have improved
$0bnraised from capping tax deductions on large gas producers
0%growth rate to be set for the National Disability Insurance Scheme by July 2026 to help manage the growth in the scheme
$0bnin budget improvements, including $17.8bn in spending reprioritisations over the 5 years
Defence
0high‑skill, high‑wage jobs are expected over the next 30 years in advanced manufacturing through the historic and vital investment in defence and national security
Environmental
$0mto establish Environment Protection Australia
$0mto support our Commonwealth national parks
$0mto establish a national and reliable flood warning system
$0mto advance its strong emergency response capability, in particular for natural disasters
Housing
0% to 0%reduction in the managed investment trust withholding tax rate for new build-to-rent projects
$0bnincrease in the liability cap for the National Housing Finance and Investment Corporation to support more lending to community housing providers
0 million homesover 5 years from 2024 remains the commitment of the Housing Accord
Cost of living relief
$0bncost-of-living relief package to:
to expand the eligibility for the Parenting Payment (Single) to single principal carers with a youngest dependent child aged 8 to under 14 years of age
increase for JobSeeker recipients, plus those on Youth Allowance, Austudy and other income support payments, delivering a $4.9bn boost in support to around 1.1m Australians looking for work, studying or doing apprenticeships
0%increase in the maximum Commonwealth Rent Assistance
Wellness chapter
$0bnpackage to address primary healthcare services and commence Medicare reform
$0bnboost that will help GPs provide free consultations to around 11.6 million eligible Australians
$0mto address the growth in vaping and a campaign to discourage smoking and e-cigarettes
0%increase per year for 3 years in the excise rate for tobacco products
$0bnincrease in funding to provide more access to life changing medicines through the PBS
0more of our Urgent Care Clinics will be funded in regional communities and growing suburbs at a cost of $358.5m
Women’s economic security
$0mto the National Plan to End Violence against Women and Children
$0mto retain and recruit more early childhood educators
Jobs and skills
$0bnto fund a 15% increase in award wages, for more than 250,000 aged care workers
$0mIndustry Growth Program which will offer advice and grants to start-ups and small-to-medium businesses, to help them commercialise their ideas and grow
$0mto enable doctors, nurses and allied health professionals to cooperate for better care
$0minvestment in our creative sector
$0bnfor a revamped 5‑year national skills agreement with the states and territories
$0mover four years to reform the way the Commonwealth delivers Foundation Skills programs, so more Australians over the age of 15 who need training to improve their literacy, numeracy and digital skills have access
Digital economy and cybersecurity
$0mto support the Government’s announcement on the establishment of a National Cyber Security Coordinator over the next four years to support leadership across the Australian Public Service in the coordination and triaging of action in response to major cyber security incidents
$0mInvestment in the responsible development of Australia’s quantum and artificial intelligence industries
$0mto sustain recent myGov advancements, including the new modernised online platform and recent introduction of the myGov app
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The 2023-24 Federal Budget contained a wide range of tax and superannuation related measures, with a focus on support for small businesses, encouraging investment in housing and clean buildings, changes to the Petroleum Resource Rent Tax and more.
