Treasurer Jim Chalmers has unveiled his fourth federal budget, marking a pivotal moment ahead of the upcoming elections. The budget proposes a range of policies aimed at benefiting various groups, although reactions are bound to vary.
Among the key winners, all taxpayers will receive tax relief, with anticipated cuts in the coming years due to previously implemented stage 3 tax cuts. Additionally, significant investments have been made in the Pharmaceutical Benefits Scheme (PBS), reducing prescription costs to no more than $25, and allocating $1.8 billion to list new medications.
Households and small businesses will also benefit from $150 in energy rebates, providing two $75 discounts up until the end of the year. The budget prioritises women’s healthcare with a substantial $793 million focused on conditions such as endometriosis and menopause.
Furthermore, three million Australians will see a reduction of 20% in their student loan debts starting from June, amounting to approximately $16 billion in total. Another noteworthy announcement prohibits non-compete clauses for employees earning under $175,000, aiming to boost economic productivity and increase wages.
Moreover, the budget dedicates $2.6 billion to improve wages for aged care nurses, alongside $3.6 billion for childcare worker pay raises. An extra incentive of $10,000 has been introduced for apprentices in the housing construction sector to bolster the workforce for an ongoing housing initiative.
On the flip side, there remains a significant gap in support for renters and no substantial increases in welfare payments were initiated, despite widespread calls for reform. The budget did promise to investigate misleading supermarket pricing but lacked immediate measures for farmers.
Despite managing surplus budgets in previous years, current projections indicate a $27.6 billion deficit, attributed to reduced revenue forecasts and an expected decline in tobacco excise collections. The budget reflects a cautious approach amid uncertainty, as it includes a pause on excise hikes for draught beer over the next two years.
In summary, while the budget holds potential relief and support measures for various demographics, critics argue that it falls short on addressing urgent needs, particularly in the rental sector and for welfare recipients. Overall, it sets the stage for an election marked by competing narratives on fiscal responsibility and community support.