Federal Budget 2023/24 - What does it mean for you?

The federal budget for 2023/24 was handed down on Tuesday 9th of May by Treasurer Dr Jim Chalmers. The budget includes several measures that will have an impact on your finances, both positive and negative. These include:

  • Cost-of-living relief: The government will provide energy bill relief to 5 million households and 1 million small businesses. It will also help 170,000 households save on energy bills by financing energy saving home upgrades.

  • Reduced out-of-pocket health costs: The government will reduce out-of-pocket health costs by tripling bulk billing incentives and investing in more bulk billing Urgent Care Clinics. It will also cut the cost of medicine by up to half for at least 6 million Australians.

  • Support for single parents: The government will support 57,000 single parents by expanding eligibility for Parenting Payment (Single).

  • Increased payments for low-income earners: The government will responsibly increase the base rate for JobSeeker and other payments for 1.1 million people. It will also increase Commonwealth Rent Assistance for 1.1 million households.

  • Pay rises for aged care workers: The government will deliver a 15 per cent pay rise on award wages for aged care workers.

  • Strengthened Medicare: The government will invest an historic $5.7 billion to strengthen Medicare. It will make it cheaper and easier to see a doctor by tripling bulk billing incentives. It will also invest in protection and prevention health services.

  • Stronger and more secure economy: The government will commit a further $4 billion to its renewable energy superpower plan. It will also invest $2 billion to make Australia a world leading hydrogen producer. It will also invest $500 million to modernise and grow Australia’s industrial capabilities. The government will also introduce new tax breaks for small business. It will build up Australia’s defence industry and support quality training and address skills needs.

  • Broadening opportunity: The government will advance women's economic opportunity. It will also end violence against women and children. It will target entrenched disadvantage and invest in Aboriginal and Torres Strait Islander communities.

  • Strengthening the budget and funding our priorities: The government will lower deficits and debt, and forecast a surplus in 2022-23. It will also invest in better quality spending and a fairer tax and superannuation system. The government will continue to support programs that Australians need and depend on. It will build a sustainable aged care system, get the NDIS back on track, look after our veterans and strengthen our engagement in the region.

These initiatives are designed to help everyday Australians with the rising cost of living, improve their health and wellbeing, and create a stronger and more secure economy.

Overall impact

The overall impact of the federal budget on your finances will depend on a number of factors, including your income, your expenses, and your financial goals. However, it is important to be aware of the potential positive and negative impacts of the budget so that you can make informed decisions about your finances.

 

If you have any questions about the federal budget or its impact on your finances, you should speak to the team at Salt.

Jenni Anderson