Federal Budget 2023 – 2024

Federal Government Budget Page

On Tuesday, 9 May 2023, Treasurer the Hon Jim Chalmers MP brought down the Labor Government’s 2023-24 Budget.  The themes of the budget are centred around ddressing challenging headwinds including higher interest rates, inflation and cost of living pressures.  A modest surplus of $4.2 billion – the first surplus in 15 years – is a welcome surprise built on tailwinds: favourable commodity prices, a strong labour market and higher migration in the short-term.

For more information about the Budget please go to https://budget.gov.au/.

Read more:

• 2023-2024 Budget Papers
• Treasurer’s speech
• Regional Ministerial Budget Statement
• Women’s Budget Statement
• Ministerial media releases

Budget Highlights:

The key numbers:

• Surplus of $4.2 billion for 2023-24
• Net debt predicted to increase to $706 billion by 2026-27
• GDP expected drop to to 1.5% in 2023-24 before increasing to 2.75% in 2026-27
• Inflation has reached its peak and is expected to slow to  3.25% in 2023-24 and gradually decrease to 2.5% in 2026-27

Key Measures:

• Assistance with cost of living: $14.6 billion package includes a range of payments for low- and middle-income families including energy bill savings, cheaper medicines, modest increases to JobSeeker and rent assistance
• Dedicated women’s budget statement: Explores factors influencing women’s economic equality and outlines key measures to advance gender equality in Australia – focusing on achieving economic equality, ending violence against women, increasing women’s representation in leadership and decision-making and improving women’s health and wellbeing
• Significant funds towards the climate transition: More funding was allocated towards climate action than originally expected. This includes $2.0 billion for the establishment of a new Hydrogen Headstart program and $1.3 billion in funding to establish the Household Energy Upgrades Fund to support home upgrades that improve energy performance and save energy
• Defence funding to increase beyond the forward estimates: The cost of the Defence Strategic Review means an increase in spending over the medium term, with Defence spending expected to rise above 2.3% of GDP in 2032-33
• Stronger budget position: The structural budget deficit is expected to be 0.5% of GDP in 2032-33, compared to 2.0% in the October budget. Lower NDIS and interest costs mean there has been a very substantial improvement in the budget bottom line over the next decade

External Budget Summaries: