Faced with the delicate task of reducing inflation and easing pressure on stretched households, Chalmers has directed much of the $14.6 billion package to those "most in need" or already on welfare and other government assistance programs.
"In all our decisions, we seek to strike a considered, methodical balance," Chalmers said.
"Between spending restraint to keep the pressure off inflation, while doing what we can to help people struggling to make ends meet."
Key measures to ease the economic strain include:
- $500 deducted from the power bills of more than 5 million households and $650 for 1 million small businesses
- Free bulk-billed GP consultations for 11.6 million Australians, including children, pensioners and other concession card holders
- A $40 per fortnight increase for JobSeeker recipients and those on Youth Allowance, Austudy and other income support payments
- Increasing the JobSeeker rate for those aged 55-59
- An increase in the maximum rate of Commonwealth Rent Assistance by 15 per cent or up to $31 a fortnight
Those measures come after the previously announced changes to single parent payments and a controversial plan to reduce the cost of medicines by allowing patients to access two-month scripts.
The surplus of $4.2 billion - the first since Peter Costello's 2007-08 budget - comes on the back of surging tax revenue from iron ore, coal and gas and a thriving jobs market.
The return to the black will be short-lived, however, with a predicted deficit of $13.9 billion next year rising to a peak of $36.6 billion over the four-year forward estimates.
Inflation - which has underpinned 11 interest rate rises in the past year and looms large over this budget - has peaked, according to Treasury estimates.
It is expected to fall from 7 per cent in the recent March quarter to 6 per cent in June and before a more drastic plunge to 2¾ per cent in June 2025.
Interest rates, hiked again only last week, are predicted to remain on hold at 3.85 per cent until early 2024, before gradual cuts to 3 per cent by June 2025.
The budget papers predict a slow rise in the unemployment rate "to 4¼ per cent by the June quarter of 2024 and 4½ per cent by the June quarter of 2025".
The overall picture of the coming years painted by Chalmers is a gloomy one, albeit with glimmers of hope for Australia.
"The global economy is slowing due to persistent inflation, higher interest rates and financial sector strains," he said.
"Outside of the pandemic and the Global Financial Crisis, the next two years are expected to be the weakest for global growth in over two decades."
Australia's gross debt is forecast to pass the eye-watering $1 trillion mark in 2025-26.
Bulking billing incentives for GPs
The centrepiece of the budget and part of a $5.7 billion boost to Medicare is $3.5 billion towards helping GPs provide free consultations to 11.6 million Australians by tripling the bulk billing incentive.
Essentially, the Albanese government hopes to incentivise clinics to bulk bill for consultations for certain groups, allowing them to access free healthcare.
Those set to benefit are children under 16 years (and their parents who pay the bills), pensioners and other Commonwealth concession card holders, while the incentive will be higher in regional and rural areas.
"One of the things that makes this the best country in the world is our shared belief that every Australian should be able to access affordable, reliable healthcare," Chalmers said.
"But right now, too many people are finding it more and more difficult to see a doctor."
Health Minister Mark Butler said it was "the largest increase to the bulk billing incentive in the 40-year history of Medicare".
"It will have immediate benefits for more than 11 million, with flow on benefits for all Australians," he said.
"Incentives will cover many common GP consultations, including telehealth and videoconference - making care more affordable, for children, pensioners and other Commonwealth concession card holders."
Energy bill relief
More than 5 million households will be eligible for $500 off their energy bills in the next financial year.
The budget papers say "support to households will be targeted at those most in need, including concession card holders, those who receive family and carers payments and recipients of electricity concessions under existing state and territory schemes".
Around 1 million small eligible businesses will receive $650.
The discounts will come off bills before they're delivered and will be implemented in partnership with the state and territory governments.
Chalmers described the measure as "real relief, right off your power bill, right when you need it".
JobSeeker rise
Around 1.1 million Australians on income support will receive an extra $40 per fortnight, including those on JobSeeker, Youth Allowance and Austudy.
Meanwhile, those over 55 will now receive the JobSeeker rate given to those over 60. Under the change, around 52,000 single JobSeeker recipients aged 59 to 59 will receive an extra $92.10 per fortnight.
"Until now, people aged 60 and over and on payments for a long time have received a higher rate, in recognition of the additional barriers they face finding work," Chalmers said.
"But the truth is, it gets more difficult earlier than that."The majority of people aged 55 and over on JobSeeker are women, many with little to no savings or superannuation, and who are at risk of homelessness."
The increase in the welfare payments comes at a cost of $4.9 billion over five years, measured from 2022-23.
Rent assistance
The government is upping the maximum rate of Commonwealth Rent Assistance by 15 per cent as the cost of living bites and vacancy rates hit record lows.
It will provide a maximum of an extra $31 a fortnight, the largest increase in more than 30 years.
The extra rental help only applies to those on Commonwealth Rent Assistance.
Those eligible include those in income support or family benefit payments.
The government says around 1.1 million households will reap the benefits at a cost of $2.7 billion to the budget over five years.
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2023-05-10 08:36:59Z
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