TRANSCRIPT
Jim Chalmers’ final first term budget - not a big one, but still some goodies.
"Every Australian taxpayer will get a tax cut next year and the year after, to top up the tax cuts which began in July. This will take the first tax rate down to its lowest level in more than half a century."
Labor will reduce the tax rate on earnings between $18,201 and $45,000 from 16 per cent to 15 per cent this year, then to 14 per cent the year after.
It means anyone earning more than $45,000 a year will take home an extra $268 annually from July 1st, and $536 more each year after.
It builds on previously-announced cost of living measures, including:
Extended energy bill relief for every household.
An $8.5 billion boost to bulk billing.
And slashing the cost of medications on the Pharmaceutical Benefits Scheme [[P-B-S]].
"We’ve come a long way together, but there is more work to do. This Budget is our plan for a new generation of prosperity in a new world of uncertainty. It’s a plan to help finish the fight against inflation, rebuild living standards, and maximise our national advantages into the future."
And a pitch to improve productivity - banning non-compete clauses that prevent employees from moving between competing businesses - a move that would apply to most workers.
"These are holding too many Australian workers back from going to better paid opportunities or setting up small businesses. They make no sense. They have millions of Australians tied up in this unnecessary red tape preventing them from earning more."
The economy is starting to settle.
Inflation is expected to fall to 2.5 per cent this year, with wages expected to grow by 3 per cent.
But spending will keep the budget in the red zone for the next decade, with a 27 billion-dollar deficit this financial year.
Dr Chalmers says it's not that bad.
"Our deficit this year has almost halved since we came to office. Next year’s deficit is $42 billion, lower than what was forecast at the last election, and lower than at the mid-year update. Gross debt will hit $940 billion this financial year, $177 billion less than what we inherited."
The Treasurer says it’s an uncertain economic time.
"We've got a war in Eastern Europe. We've got a collapsing cease fire in the Middle East. And so all of this is creating the sorts of global economic conditions which make it even more remarkable what the Australian people are achieving in our own economy here at home. Now this global economic uncertainty is not as episodic as we may have become accustomed to in earlier generations. Just in the 2020s we've already had the global pandemic, the global inflation spike which followed it, and now the threat of a global trade war."
But despite big talk, not much to Trump-proof the budget.
Just $20 million to promote Australian made products.
And no new money for aid, despite the cuts from the US.
Instead, moving $120 million global aid programs to the Indo-Pacific region next year.
Jim Chalmers says the government is doing what it can.
"Well we're already stepping up, I guess is the point that I'm making, but we need to do that within the context of our other budget constraints and our other priorities."
Labor is hoping this budget is enough to tempt voters, with an election to be called at any moment.
