2023-2024 Federal Budget

This years 2023-24 Federal Budget is expected to return to a surplus of $4b thanks to a continuing revenue windfall. Key measures include cost of living support, more spending on aged care and a move to slow NDIS growth. Read the full budget summary to find out what it means for you.

The 2023-24 Budget

Return to surplus with fastest improvement since end of WW2, cost of living help but structural deficits remain (albeit smaller).

Key points

• The budget this year is expected to return to a surplus of $4b thanks to a continuing revenue windfall.
• Key measures include cost of living support, more spending on aged care and a move to slow NDIS growth.
• Implications for inflation and hence the RBA are minimal.
• Despite savings measures structural budget deficits remain in the medium term as the revenue windfall fades.

AMP Head of Investment Strategy and Chief Economist, Dr Shane Oliver and Deputy Chief Economist, Diana Mousina explain what effects the Federal Budget could have on the Australian economy.

Introduction

This Budget yet again benefits from a huge revenue windfall allowing a surplus this year for the first time in 15 years and cost of living relief. At the same time, medium term deficits, while lower, remain leaving the budget vulnerable to anything that upsets the “rivers of gold” flowing to Canberra.

Key budget measures

Key measures, many of which were announced prior, include:

• $14.6b over four years in cost of living support for mostly low to middle income households, including $3b (shared with states) in one off energy bill relief for 5m low-middle income households and 1m small businesses, an additional $3.5b to Medicare over 5 years to allow better access to GPs through a lift in the bulk billing incentive, cheaper medicines, a boost to rent assistance, subsidies to move from gas to electric appliances, increased support for single parents costing $1.9b over 5 years and a modest increase in Jobseeker with more for over 55s.

Follow the link to download a PDF version of our 2023-24 federal budget bulletin ….

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Source: AMP, The 2023-24 Budget – AMP