2024 Australian federal budget
 | |
| Presented | Expected on 14 May 2024 |
|---|---|
| Party | Australian Labor Party |
| Treasurer | Jim Chalmers |
| Total revenue | A$671 billion |
| Total expenditures | A$715 billion |
| Website | budget |
| Figures are estimates from the 2023-24 Australian federal budget
‹ 2023 2025› | |
The 2024–25 Australian federal budget was delivered on budget night at 7:30pm on Tuesday, 14 May 2024 by Treasurer Jim Chalmers.[1] The budget will dictate how the Australian Government will allocate an estimated A$715 billion across the federal government, and to state and territory governments.[2] It will be the third federal budget handed down by the Labor Party since their victory in the 2022 Australian federal election.
The consultation period described the budget as focused on support for Australians and creating a "stronger, more inclusive and more sustainable economy" with several individual items announced.[3]
It was expected that the budget will provide a surplus for the second year in a row. Independent economist Chris Richardson described the government's position as "rolling in cash".[4] There are two main reasons the government is flush with money. High commodity prices are leading to a high corporate tax take and a stronger-than-expected economy leading to a high income tax take.[4]
Pre-budget
Predictions and commentary
With global inflation decreasing and markets stabilising, the ABC predicts that the budget will focus less on mitigating the impacts of inflation and instead address "trouble in China, sluggish growth, and the ever-present pressures on government spending." All three 'threats' to the budget have been raised by the International Monetary Fund, with a property-driven slow-down effecting the Chinese economy and its import-export markets and the anticipated recommendations from a number of inquiries across the health and aged care, education and social services sectors.[5] Global consulting firm KPMG anticipates the budget will focus on cost of living challenges, investment in infrastructure, and emission reduction initiatives.[6] During a press conference with the Committee for Economic Development in Australia, Chalmers said there would be no "big cash splashes", in part due to declining iron ore prices and "softening labour market", and that much of the leading items had already been announced including an expansion of the NDIS, university reforms and aged care changes.[7]
Students, welfare recipients and taxpayers will be the winners of the budget. Stage three tax cuts and student debt relief have been announced.[8] Welfare support and energy bill relief were highlighted in the lead up to the budget.[8]
Political importance
Political reporter Brett Worthington surmised in his analysis that the federal budget will likely deliver an overall surplus for the second year in a row with massive political significance. The Australian Labor Party is frequently criticised by the opposing Liberal Party for what is seen as financial mismanagement, however Worthington highlights that the Liberal-led coalition had failed to deliver a single surplus budget during its nine years of power until 2022.[9][10] The 2023–24 budget was the first federal surplus in 15 years, with a final surplus of more than A$22 billion, an improvement of more than A$100 billion since Labor won the 2022 federal elections from the coalition.[11][12]
Announcements
On Wednesday 17 April, defence minister Richard Marles announced more than A$50 billion of extra funding for the Australian Defence Force over 10 years, bringing total military spending to 2.4% of the national GDP. Marles also announced the budget would include the re-allocation of an additional A$72.8 billion in planned spending, and an immediate A$1 billion injection to "accelerate long-range missiles and targeting systems, as well as lethal autonomous systems." Included in the conference at the National Press Club was a renewed focus on sea passages throughout South-East Asia and projecting Australia's defence capabilities throughout the region.[13]
Forecast
The budget projected a surplus of $9.3 billion.[14] It is forecast that inflation could return to the target band of between two and three per cent, by the end of 2024.[15] The deficit is forecast to be $28.3 billion for 2025 and $42.8 billion for 2026.[16]
Expenditure
Total spending is $734 billion.[17] A 6 May announcement included details on a Commonwealth Prac Payment of $319.50 per week, to support teaching, nursing, midwifery and social worker students doing workplace placements for their degrees.[8] In an effort to alleviate the housing supply crisis about $90 million is being spent to cover the education costs of 20,000 people which the government hopes will boost the sector.[18]
Every household will receive a $300 energy bill credit.[16] $325 million has been allocated towards 1 million small businesses receiving an energy bill rebate. There will be a 10 per cent increase to Commonwealth rent assistance.[16]
$1 billion will be spent on crisis and transitional accommodation for women and children fleeing family violence.[16]
Under the 'Future Made in Australia' program, a $22.7 billion investment aims to support renewable energy manufacturing and exports to help fight climate change.[19]
Opposition and crossbench response
The opposition approved of new budget measures that addressed the cost of living.[16]
Reception
The Australian Council of Social Service said the budget failed to deliver the solutions needed.[20] The Salvation Army Australia welcomed any assistance at this time of need.[20] The Australian Conservation Foundation welcomed crucial measures that helped the climate.[19]
References
- ^ "Budget 2024-25". Budget.gov.au. Retrieved 20 April 2024.
- ^ Chalmers, Jim (9 May 2023). "Budget Paper 1: Budget Strategy and Outlook" (PDF). Budget 2023-24. Retrieved 20 April 2024.
- ^ "2024-25 Pre-Budget submissions". Treasury. 25 January 2024. Retrieved 20 April 2024.
- ^ a b Crowley, Tom (6 May 2024). "Federal budget to haul in extra cash once again, but less than in previous years". ABC News. Retrieved 13 May 2024.
- ^ Crowley, Tom (19 April 2024). "For the first time this term, inflation may not dominate the budget. What will?". ABC News. Retrieved 20 April 2024.
- ^ Yates, Andrew; Rynne, Brendan; Lum, Alia. "Australian Federal Budget 2024". KMPG Australia. Retrieved 20 April 2024.
- ^ Roberts, Georgia; Lowrey, Tom (13 March 2024). "'No big cash splashes' in budget, says Chalmers, but more of budget windfalls will be spent". ABC News. Retrieved 20 April 2024.
- ^ a b c Jeffrey, Daniel (13 May 2024). "The federal budget is almost upon us. This is what you can expect from it". 9 News. Retrieved 13 May 2024.
- ^ Worthington, Brett (14 March 2024). "As the federal budget approaches, so begins Jim Chalmers's great expectation management game". ABC News. Retrieved 20 April 2024.
- ^ Hurst, David (22 May 2022). "Australia's government is changing after nine years of the Coalition – what happens next?". The Guardian. Retrieved 20 April 2024.
- ^ "Australia posts first budget surplus in 15 years as tax revenues soar". Reuters. 22 September 2023. Retrieved 20 April 2024.
- ^ Vidler, Adam (22 September 2023). "'Biggest surplus ever': Chalmers announces $100 billion budget turnaround". Nine News. Retrieved 20 April 2024.
- ^ Greene, Andrew; Cowley, Tom (17 April 2024). "Richard Marles unveils $50 billion defence spending increase over next decade". ABC News (Australia). Retrieved 20 April 2024.
- ^ Karp, Paul; Hannam, Peter (14 May 2024). "Federal budget to remain in the black with forecast surplus of $9.3bn for 2023-24". The Guardian. Retrieved 14 May 2024.
- ^ Orlando, Adam (14 May 2024). "May Budget 2024: Surplus 'not end in itself' amid inflation focus". mining.com.au. Retrieved 14 May 2024.
- ^ a b c d e Roberts, Georgia (15 May 2024). "Opposition to support energy bill relief, other budget measures". ABC News. Retrieved 15 May 2024.
- ^ Britton, Alexander (15 May 2024). "The Australian budget is big. Let's break it down". SBS News. Retrieved 15 May 2024.
- ^ Borys, Stephanie (14 May 2024). "Millions pledged to cover fee-free TAFE to get more workers into housing construction". ABC News. Retrieved 14 May 2024.
- ^ a b Dahlstrom, Michael (14 May 2024). "Federal Budget 2024: Billion dollar detail to make Australia 'better for our kids' future'". yahoo! News. Retrieved 15 May 2024.
- ^ a b Lang, Sydney (15 May 2024). "Social and support sectors react with disappointment to federal budget". SBS News. Retrieved 15 May 2024.