Treasurer Jim Chalmers is set to unveil the Federal Budget tonight, with a focus on providing relief for Australians facing rising living costs. Here’s a breakdown of the key areas we already know about:
What’s inside?
Cost of Living Relief
- The center stage goes to the reworked stage 3 tax cuts. These cuts benefit all Australians earning more than $18,200, with those between $45,000 and $120,000 receiving a bigger tax cut compared to the original plan.
- Additional cost-of-living measures are expected, including potential energy bill relief and adjustments to rent assistance and payments like JobSeeker and the aged pension.
Tax Changes
- The government might extend the instant asset write-off scheme for small businesses, allowing them to claim deductions on eligible assets.
Housing
- The government plans to invest billions in building new homes across the country, reaching an estimated $11.3 billion.
- This includes $1 billion for crisis and transitional housing for women and children fleeing violence, and $9.3 billion to states and territories for combating homelessness, building social housing, and improving infrastructure related to housing development.
- The focus is on attracting skilled workers in construction by providing financial support and creating more training opportunities.
To further address housing needs, the government will collaborate with universities to increase purpose-built student accommodation.
This aims to free up space in the private rental market, currently facing critical shortages and rising rents. This initiative complements the previously announced $25 billion investment in new housing, including $10 billion dedicated to the Housing Australia Future Fund for building 30,000 affordable rental homes.
Infrastructure
- A slew of funding commitments have been made around the country, including a $1.9 billion funding commitment for upgrades in Western Sydney.
- The government is also putting significant funds towards major projects like the Victoria’s North East Link and the Brisbane to Sunshine Coast rail link.
- Millions will be spent on upgrades to the Bruce Highway in Queensland and an extension of Canberra’s light rail.
- A proposed high-speed train line between Sydney and Newcastle will receive funding to develop a business case.
Future Made in Australia
- This initiative aims to revitalize local manufacturing and renewable energy with over $15 billion in funding. This includes investments in solar panel production, hydrogen projects, critical minerals exploration, and high-tech manufacturing.
Other Key Areas
- Health: Increased funding for Medicare, urgent care clinics, medical research, and support for women’s health issues.
- Paid Parental Leave: Superannuation will be paid on top of parental leave payments starting next year.
- Domestic Violence: Nearly $1 billion will be dedicated to combating violence against women, including financial support for survivors and measures to tackle online misogyny.
- Defence: A significant increase in defence spending over the next decade, including upgrades to bases and investments in long-range missiles as announced in the federal budget
- Education: $3 billion allocated to wipe out HECS debts for over 3 million Australians (average credit of $1,200).
- Training: $90 million invested to create 15,000 fee-free TAFE and VET places in construction, along with additional pre-apprenticeship programs.
- Government aims to tackle “placement poverty” by offering financial aid for practical training placements in healthcare and social work (details likely not mentioned in final budget breakdown).
- Infrastructure: Funding for infrastructure projects across the country, including upgrades to major roads, public transport, and a potential high-speed rail line between Sydney and Newcastle.
- Environment: The scrapping of the proposed waste export levy. Source
Overall, the federal budget prioritizes measures to address cost-of-living pressures, boost housing construction, and support local manufacturing and innovation. Stay tuned for the full budget reveal tonight to learn more about the details and specific allocations.