Key Points
- Treasurer says his focus is on easing cost of living pressures
- Another tax cut on the way if Labor is re-elected to government
- The plan to help multicultural communities combat misinformation.
TRANSCRIPT
Treasurer Jim Chalmers says his plan will improve living standards with broad cost of living measures, is the focus of Labor’s pre-election budget.
The biggest line item is a tax cut for every taxpayer, with Labor vowing to reduce the rate of the lowest tax bracket if re-elected.
It builds on already-announced cost of living relief, including a $150 energy bill relief for every household, cheaper medications and funding towards Medicare.
The handouts will put the budget in the red zone for the next decade, with a 27-billion-dollar deficit this financial year alone.
Dr Chalmers says the budget is focused on the pressures households are under.
“So, this budget is really a platform for prosperity in a new world of uncertainty. It recognises that cost of living pressures of front of mind for many Australians and that is why it's front and centre in the budget.”
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Australians are to get another tax cut if Labor is re-elected.
Labor will reduce the tax rate on earnings between $18,201 and $45,000 from 16 per cent to 15 per cent from July 1 this year, and further decreases to 14 per cent the year after.
The change will mean anyone earning more than $45,000 a year will get $268 more a year initially and then $536 the year after.
Before the changes to stage 3 tax cuts last year, the lowest tax bracket was 19 per cent.
It's expected to cost the government $17 billion over the next three years.
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Labor says it is committed to making healthcare cheaper in Australia.
The Federal Government has already committed a $7.9 billion investment to make 9 out of 10 G-P visits bulk billed by 2030.
It has also promised to reduce the cost of medications on the Pharmaceutical Benefits Scheme [[PBS]].
It will also invest in the primary health care workforce, with $10.5 million to expand the Primary Care Nursing and Midwifery Scholarship program by 400 places.
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More people will be eligible to access Labor’s Help to Buy scheme, with plans to increase the income and property price caps after the election.
The program will still be limited to 40,000 first home buyers, however the income caps will be raised from $90,000 to $100,000 for singles and from $120,000 to $160,000 for couples.
The scheme allows eligible buyers to access a shared equity loan of up to 40 per cent of their first home.
The extended eligibility will cost an additional $800 million dollars.
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The government intends to provide $2 billion to recapitalise the Clean Energy Finance Corporation to invest in renewable energy, energy efficiency and low emissions technologies.
There is also a $2 billion investment over 19 years in Australia's metals industry to provide grants to support a switch to renewable electricity before 2036.
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The government is to continue its military support for Ukraine, with $17 million allocated in the Federal Budget over two years for military aid.
The money is to go towards communication systems, artillery components, and firearms to assist in Ukraine’s defence against the Russian invasion.
Australia has committed more than $1.5 billion to Ukraine since the Russian ground invasion in 2022.
The government has already committed to return an Australian Embassy to Kyiv.
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The Albanese government has pledged to boost its spending on social cohesion.
It’s set to spend $178 million over the next five years on measures including support for Australia’s Jewish and other multicultural communities.
Last year, the government announced a range of funding for those affected by the Hamas-Israel war, including improving security for Jewish communities and grants for Arab and Muslim bodies, as well as media companies to combat misinformation.
The budget contains new funding for security at Jewish and Muslim places of worship, as well as multicultural programs including $15 million for a new sports hub and $10 million for independent multicultural media outlets, and $2 million for the Holocaust Institute of Western Australia.
African and Chinese communities will also receive some funding to restore museums and other programs.
