Treasurer Jim Chalmers has delivered his third Budget, prioritising boosting private sector investment to “fund and finance the future”.
He was tasked with improving growth without fuelling inflation amidst weak and uncertain domestic and global economic outlooks, and this has resulted in a relatively measured Federal Budget.
The 2024-25 Budget, which seeks to secure Australia’s future economic prosperity by providing assistance to Australians with cost-of-living pressures as well as delivering on the Federal Government’s Future Made in Australia plan, includes the following headline measures:
- Investing in a Future Made in Australia: $22.7b of investment over the next decade to build a Future Made in Australia, which is a plan to maximise the economic and industrial benefits of the net zero transformation.
- Cost-of-living relief measures
- $300 energy relief for all Australian households and $325 for eligible small businesses,
- the waiving of $3bn in student debt through amendments to the approach to HECS indexation,
- increasing the maximum Commonwealth Rent Assistance amount,
- and cheaper medicines.
- Building more homes for Australians, including new housing investment of $6.2bn.;
- Significant investment in Medicare.
After an expected second successive surplus of $9.3 billion for 2023-24, the Government is headed back into deficit for 2024-25 year, predicted to be $28.3 billion.The Government’s focus is to stimulate economic growth through encouraging businesses to invest, while maintaining cost-of-living relief balanced against a predicted easing of inflationary pressures.