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2023 Australian federal budget

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Federal government budget

2023–24 (2023–24) Australian federal budget
Submitted toHouse of Representatives
Presented9 May 2023
Parliament47th Parliament
GovernmentAlbanese government
PartyAustralian Labor Party
TreasurerJim Chalmers
Total revenueA$704.5 billion
Total expendituresA$685.9 billion
SurplusA$15.8 billion
Debt34.0% (A$906.9 billion)
Websitearchive.budget.gov.au/2023-24/index.htm
‹ October 20222024›

The 2023–24 Australian federal budget is the federal budget to fund government services and operations. The budget was presented to the House of Representatives by Treasurer Jim Chalmers on 9 May 2023. It was the second budget handed down by the Australian Labor Party since their election to government in 2022.

Background

Inflation was still well above the Reserve Bank of Australia's 2-3% target band. In the first quarter of 2023, the annual inflation rate slowed to 7.0%, from 7.8%. The International Monetary Fund had recently warned Jim Chalmers about the coming slow-down in the global economy. Concerns remained with the last two interest rate rises causing hardship for some households and the broader economy.

The budget was delivered during a period in which the rental market was described as a crisis. On 27 April 2023, Anglicare Australia released its annual report on rental affordability. Just 345 rentals (0.8%) were considered affordable to renters earning minimum wage. Homelessness Australia wanted the Commonwealth to increase the rent assistance payment by 50 per cent.

300 signatories signed an open letter urging the government to increase the rate of the JobSeeker, Youth Allowance and other payments in the next budget. The letter was co-signed by academics, business leaders, economists and politicians including Labor backbenchers. Prior to the budget's release the Australian Council of Social Service made calls to increase JobSeeker to $76 a day.

The Australian Medical Association called attention to emergency department and essential surgery waiting times in the lead up to the budget's release.

Forecasts

The budget is forecast to deliver a surplus of $4 billion, the first in 15 years. The change in forecast is due to high commodity prices, a strong jobs market and a rise in net migration. A return to a $13.9bn deficit is expected in the following financial year. Another deficit of $36.9bn or 1.3% of Gross Domestic Product (GDP) is forecast for 2025-26 and then a decline to $28.5bn in the following year.

Revenues

The final budget outcomes for 2022–23 delivered a surplus of $22.1 billion (equivalent to 0.9% of Australia’s GDP), which was well above the government's forecasted surplus of $4.3 billion; this is Australia's first budget surplus in 15 years, and the largest ever Australian budget surplus.

Expenditure

A$11.3 billion over the next four years is to be spent on aged care. Around 250,000 aged care workers will receive a 15% wage rise from 1 July 2023.

The Pharmaceutical Benefits Scheme undergoes a major change, with the cost of prescription drugs set to halve as dispensing rules were changed. It is estimated this will save $1.6bn for patients over the next four years.

$4bn was allocated to the Australian Defence Force's missiles to expand their long-range strike capabilities and to establish domestic manufacturing of guided weapons. The measure aims to modernise the force and make Australia self-reliant.

To stem a decline in new apprenticeships, the government will fund an overhaul of services and non-financial supports to apprentices.

The budget included an increase of $40 per fortnight in the JobSeeker allowance for most people, and $92.10 extra for long-term unemployed 55- to 60-year-old people.

A total of A$10.5 million has been allocated to improve mental health services for Indigenous Australians in the lead-up to the September/October 2023 referendum on the Indigenous Voice to Parliament: $500,000 for ANU's Mayi Kuwayu research team to monitor the well-being of communities, and the rest to the National Aboriginal Community Controlled Health Organisation.

Opposition and crossbench response

Leader of the Opposition Peter Dutton withheld support for the JobSeeker increase in his budget reply speech, instead suggesting that welfare recipients should be allowed to earn more before their payments are reduced. He supported some of the proposed welfare and cost-of-living relief measures, but criticised the level of migration and Labor's stance against any form of nuclear power.

Reception

The United Workers Union praised the decision to raise aged care workers pay.

See also

References

  1. ^ Chalmers, Jim; Gallagher, Katy (September 2024). "Budget 2023–24 Final Budget Outcome" (PDF). ISSN 2205-6769. Archived (PDF) from the original on 1 October 2024. Retrieved 1 October 2024 – via The Commonwealth of Australia.
  2. Cole, Wayne (26 April 2023). Sarkar, Himani (ed.). "Australia inflation slows in Q1, market leans against rate hike". Reuters. Archived from the original on 1 October 2024. Retrieved 26 April 2023.
  3. Hutchens, Gareth (19 April 2023). "Jim Chalmers is a man on many missions. Here's what the treasurer's been up to ahead of the budget". ABC News. Archived from the original on 1 October 2024. Retrieved 27 April 2023.
  4. Wright, Shane (17 April 2023). "Gloomiest outlook yet: Economy on knife-edge and facing consumer recession, says Deloitte". The Sydney Morning Herald. Archived from the original on 1 October 2024. Retrieved 27 April 2023.
  5. Kelly, Cait (26 April 2023). "Rental affordability worst ever seen for minimum wage earners, Anglicare says". The Guardian. Archived from the original on 1 October 2024. Retrieved 27 April 2023.
  6. ^ Gimondo, Bianca (27 April 2023). "Will the May 2023 federal budget provide stability for sectors in hot water?". The Market Herald. Archived from the original on 1 October 2024. Retrieved 27 April 2023.
  7. ^ Al-Khouri, Chantelle (26 April 2023). "Labor backbenchers join push for JobSeeker lift ahead of federal budget". ABC News. Australian Broadcasting Corporation. Archived from the original on 27 April 2023. Retrieved 27 April 2023.
  8. Bannister, Maeve (28 April 2023). "Call for urgent 'health budget' to fix public hospitals". The New Daily. Retrieved 28 April 2023.
  9. ^ Hegarty, Nicole (8 May 2023). "First surplus in 15 years expected as Albanese government delivers second budget". ABC News. Australian Broadcasting Corporation. Archived from the original on 1 October 2024. Retrieved 9 May 2023.
  10. ^ Hannam, Peter (9 May 2023). "Inflation rate to halve, bringing wage growth by 2024, federal budget predicts – with hope of mortgage relief". The Guardian. Archived from the original on 1 October 2024. Retrieved 9 May 2023.
  11. McGuirk, Rod. "Australia's government posts $14.2 billion budget surplus after 15 years in the red". Canberra, Australia: Associated Press. Archived from the original on 1 October 2024. Retrieved 3 January 2024.
  12. ^ Ransley, Ellen (4 May 2023). "'Historic' pay rise for struggling aged care sector to cost budget $11.3bn". news.com.au. Nationwide News. Retrieved 4 May 2023.
  13. ^ Gould, Courtney; McLeod, Catie (25 April 2023). "Pharmacy Guild collides with Labor over changes to dispensing rules". news.com.au. Nationwide News. Retrieved 26 April 2023.
  14. ^ Hurst, Daniel (26 April 2023). "Federal budget to allocate $4bn for long-range missiles and Australian production of key weapons". The Guardian. Archived from the original on 1 October 2024. Retrieved 26 April 2023.
  15. Dietsch, Jake (28 April 2023). "Federal Budget: Funding boost in bid to stop decline of apprentices finishing trade courses". The West Australian. West Australian Newspapers. Archived from the original on 1 October 2024. Retrieved 28 April 2023.
  16. ^ Karp, Paul (11 May 2023). "Budget reply speech 2023: Peter Dutton withholds support for Jobseeker boost and doubles down on migration attacks". The Guardian. Archived from the original on 1 October 2024. Retrieved 13 May 2023.
  17. Morse, Dana; Bourchier, Dan (11 May 2023). "Key 'No' camps merge to form Australians for Unity to strengthen referendum campaign". ABC News (Australia). Archived from the original on 12 May 2023. Retrieved 13 May 2023.

External links

Australian federal budget
Howard Government
Rudd / Gillard / Rudd Government
Abbott / Turnbull / Morrison Government
Albanese Government
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