Labor has delivered its first Australian federal budget since 2013, with Treasurer Jim Chalmers addressing the nation.
As Australians face increasing cost of living pressures, the government is hoping to fulfill some election promises and set the tone for how it will govern.
Winners and losers
Families – Winner. There’s $4.7 billion worth of spending in the budget over the next four years.
Wages – Loser. Rising inflation means real wages are expected to continue to go backwards for another year at least. Unemployment is forecast to increase and the electricity and gas forecasts are so concerning that Treasurer Jim Chalmers is even threatening market intervention.
The environment – Winner. More money has been set aside for conservation.
Law breakers – Loser. Fines are set to increase, for example for tax evasion.
This financial year’s deficit forecast has halved and net debt is tipped to be about $100 million lower than originally forecast for 2026.
But Australia is facing a future where an ageing population is going to hit the government in two ways — fewer people paying income tax and greater welfare payments.
Female participation
Labor’s focus is firmly on improving female workforce participation with its election policy to increase childcare subsidies for families earning less than $530,000 a year.
“Cheaper child care is a game-changing investment in families, our workforce, and our economy,” he argued early in his budget speech.
