This week, Treasurer Jim Chalmers delivered the 2023 Federal Budget, announcing a surprise surplus of $4.2 billion. In delivering the Budget, Chalmers spoke to the challenges that Australians are facing as a result of the global economy.
He noted, “the best response to these challenges is a responsible Budget that strikes the right balance between fiscal restraint, easing cost-of-living pressures, securing the essential services people rely on and investing in sustainable drivers of growth.”
So what do Budget initiatives and cost of living packages mean for you and your family?
Here’s a breakdown of how the Federal Budget will support Australians in the next financial year.
Cost of living
- Provide energy bill relief for five million households of up to $500
- Provide energy bill relief for one million small businesses of up to $650
- Reduce energy bills by financing energy-saving home upgrades, supporting 170,000 households
- Reduce medical expenses for many Australians with bulk billing incentives
- Cut the cost of medicine by up to half for at least six million people
- Expand eligibility for Parenting Payment (Single) to increase accessibility for 57,000 single parents
- Increase the base rate for JobSeeker and other payments by $40 per fortnight for 1.1 million people
- Increase Commonwealth Rent Assistance for 1.1 million households
Health
- Invest $5.7 billion over five years to improve Medicare
- Increase bulk billing within urgent care clinics
- Provide an additional $79.5 million in support for regional pharmacies
- Invest $561.6 million in indigenous health programs including cancer and anti-smoking initiatives
- Introduce a 15 per cent pay rise on award wages for aged care workers
Education
- Invest $150.5 million in Indigenous education programs
- Invest $72.4 million for skilling early childhood workers
- Create 20,000 extra university places in 2023 and 2024
Business
- Provide a tax break to reduce energy costs
- Introduce a $20,000 instant asset write-off
- Invest $432 million for SME support including commercialising ideas
Aged Care
- Implement a pay rise of 15 per cent for sector workers
- Create extra work hours for international students in the sector
- Invest $166.8 million for additional home care packages
- Invest $487 million in disability support programs
Women & Families
- Introduce a more flexible paid parental leave scheme
- Reduced childcare costs for 1.2 million families
- Invest an additional $589.3 million into women’s safety initiatives
- Introduce targets for women apprentices on government projects
Housing
- Invest $7.5 billion in National Housing Finance and Investment Corporation (an increase of $2 billion)
- Expand eligibility criteria of the Home Guarantee Scheme
- Invest $410.4 million in Indigenous housing
Are you struggling to keep up with cost-of-living pressures and worried about your financial wellbeing? The team at APS is here to provide financial support and advice when you need it most, all the way from Personal Loans, to Financial Planning and everything in between.