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Australia’s Federal Government is set to unveil its highly-anticipated annual Budget tomorrow evening, with a focus on addressing inflation and the nation’s cost-of-living crisis.
Treasurer Jim Chalmers said the budget would be about “relief, repair, restraint,” referring to cost-of-living relief, repair of supply chains, and spending constraints.
The budget is set to provide $14.6 billion in cost-of-living relief measures, including an increase to jobseeker payments. There’ll be aid for renters and energy assistance for households and small businesses.
Mr Chalmers assured Australians the cost-of-living relief wouldn’t further drive inflation, but would help those “doing it toughest.”
City Index Senior Market Analyst Matt Simpson said traders would look at how the budget aligned with the Prime Minister’s key goal of moderating inflation.
“It is not the easiest of goals to achieve… with such high levels of immigration alongside a rental crisis,” he said.
“But if the Treasurer pulls it off and convinces investors that inflation can be tamed, it should be supportive of the stock market and weight on the Australian dollar as it removes pressure from the RBA for further tightening.”
The Budget will include a Small Business Energy Incentive to help up to 3.8 million small and medium-sized businesses with annual turnover below $50 million to save on their energy bills.
It’s also set to address issues relating to defence, aged care, healthcare and the superannuation system.
The Albanese Government recently recast the Australian Defence Force mission, set to cost around $19 billion over four years.
The budget has set aside $11.3 billion for a 15 per cent wage increase for aged care employees and $2.2 billion for a primary healthcare services package. The Government aims to always have nurses on staff at aged care homes.
The superannuation system will also undergo a shake-up, with a 30 per cent tax rate applied to earnings of super balances above $3 million from July 1, 2025.
Additionally, the government has pledged $234 million to combat the rise of vaping.
Other budget hot spots are likely to include childcare, NDIS, education, training and housing.
The Federal Budget will be released at 7:30 pm AEST tomorrow, Tuesday, May 9.
