2024 Australian federal budget

Last updated

2024 (2024) Australian federal budget
Australian federal budget 2024-25 logo.png
Submitted to House of Representatives
Presented14 May 2024
Parliament 47th Parliament of Australia
Party Australian Labor Party
Treasurer Jim Chalmers
Total revenueA$711.5 billion [1]
Total expendituresA$734.5 billion [1]
Tax cuts A$1,888 on average [1]
Debt paymentA$23.8 billion [1]
SurplusA$9.3 billion [1]
Deficit A$28.3 billion [1]
Debt33.9% of GDP [1]
Website budget.gov.au
‹  2023
2025›

The 2024 Australian federal budget was delivered on budget night at 7:30pm on Tuesday, 14 May 2024 by Treasurer Jim Chalmers. [2] The budget will dictate how the Australian Government will allocate an estimated A$715 billion across the federal government, and to state and territory governments. [1] It is the third federal budget handed down by the Labor Party since their victory in 2022. The consultation period described the budget as focused on support for Australians and creating a "stronger, more inclusive and more sustainable economy". [3]

Contents

Pre-budget

Predictions and commentary

With global inflation decreasing and markets stabilising, the ABC predicts that the budget will focus less on mitigating the impacts of inflation and instead address "trouble in China, sluggish growth, and the ever-present pressures on government spending." All three 'threats' to the budget have been raised by the International Monetary Fund, with a property-driven slow-down effecting the Chinese economy and its import-export markets and the anticipated recommendations from a number of inquiries across the health and aged care, education and social services sectors. [4] Global consulting firm KPMG anticipates the budget will focus on cost of living challenges, investment in infrastructure, and emission reduction initiatives. [5]

Independent economist Chris Richardson described the government's position as "rolling in cash" as a result of temporary improvements from a stronger-than-expected economy resulting in greater income tax receipts, and higher commodity prices pushing corporate tax revenue up. [6] Richardson however advised against "using temporary good news to spend big", noting that these financial improvements are likely to reduce. During a press conference with the Committee for Economic Development in Australia, Chalmers said there would be no "big cash splashes", in part due to already declining iron ore prices and "softening labour market", and that much of the leading items had already been announced including an expansion of the NDIS, university reforms and aged care changes. [7]

It was forecast that inflation could return to the target band of between two and three per cent, by the end of 2024. [8]

Political importance

Political reporter Brett Worthington surmised in his analysis that the federal budget will likely deliver an overall surplus for the second year in a row with massive political significance. The Australian Labor Party is frequently criticised by the opposing Liberal Party for what is seen as financial mismanagement, however Worthington highlights that the Liberal-led coalition had failed to deliver a single surplus budget during its nine years of power until 2022. [9] [10] The 2023–24 budget was the first federal surplus in 15 years, with a final surplus of more than A$22 billion, an improvement of more than A$100 billion since Labor won the 2022 federal elections from the coalition. [11] [12]

Announcements

On Wednesday 17 April, defence minister Richard Marles announced more than A$50 billion of extra funding for the Australian Defence Force over 10 years, bringing total military spending to 2.4% of the national GDP. Marles also announced the budget would include the re-allocation of an additional A$72.8 billion in planned spending, and an immediate A$1 billion injection to "accelerate long-range missiles and targeting systems, as well as lethal autonomous systems." Included in the conference at the National Press Club was a renewed focus on sea passages throughout South-East Asia and projecting Australia's defence capabilities throughout the region. [13]

Students, welfare recipients and taxpayers were expected to be significant beneficiaries of the budget. Stage three tax cuts and student debt relief had been announced, with welfare support and energy bill relief highlighted in the lead up to the budget. [14]

A 6 May announcement included details on a "Commonwealth Prac Payment" of $319.50 per week, to support teaching, nursing, midwifery and social work students during mandatory unpaid placements for their degrees. [14] In an effort to alleviate the housing supply crisis about $90 million is being spent to cover the education costs of 20,000 people which the government hopes will boost the sector. [15]

Every household will receive a $300 energy bill credit. [16] A rebate of $325 has been allocated towards 1 million small businesses receiving an energy bill. There will be a 10 per cent increase to Commonwealth rent assistance. [16]

$1 billion will be spent on crisis and transitional accommodation for women and children fleeing family violence. [16]

Under the 'Future Made in Australia' program, a $22.7 billion investment aims to support renewable energy manufacturing and exports to help fight climate change. [17]

Financial measures

Balance sheet

It was projected that the budget would provide a surplus for the third year in a row, with a predicted balance of A$9.3 billion. [18] However, the budget was released with a total annual deficit of A$23.8 billion attributed to cost-of-living relief measures and extensions to some time-limited funding. [1] The annual deficit was originally thought to grow to A$42.8 billion for 2025–26, however that figure was revised to A$34.5 billion (representing A$8.3 billion in improvements), and is further predicted to decrease to A$10.1 billion by 2027–28. [16] [1]

Expenditure

The budget includes total government expenditure totalling A$734 billion (26.6% of GDP), an increase from the previous year but projected to reduce from 2025–26 onwards. [19]

Opposition and crossbench response

The opposition approved of new budget measures that addressed the cost of living. [16] In the days after the budget's release the lack of means testing for the energy bill relief was criticised. [20]

Reception

The Australian Council of Social Service said the budget failed to deliver the solutions needed. [21] The Salvation Army Australia welcomed any assistance at this time of need. [21] The Australian Conservation Foundation welcomed crucial measures that helped the climate. [17]

Related Research Articles

<span class="mw-page-title-main">National debt of the United States</span> Worlds largest national debt

The national debt of the United States is the total national debt owed by the federal government of the United States to Treasury security holders. The national debt at any point in time is the face value of the then-outstanding Treasury securities that have been issued by the Treasury and other federal agencies. The terms "national deficit" and "national surplus" usually refer to the federal government budget balance from year to year, not the cumulative amount of debt. In a deficit year the national debt increases as the government needs to borrow funds to finance the deficit, while in a surplus year the debt decreases as more money is received than spent, enabling the government to reduce the debt by buying back some Treasury securities. In general, government debt increases as a result of government spending and decreases from tax or other receipts, both of which fluctuate during the course of a fiscal year. There are two components of gross national debt:

<span class="mw-page-title-main">Anthony Albanese</span> Prime Minister of Australia since 2022

Anthony Norman Albanese is an Australian politician serving as the 31st and current prime minister of Australia since 2022. He has been the leader of the Labor Party (ALP) since 2019 and the member of parliament (MP) for the New South Wales division of Grayndler since 1996. Albanese previously served as the 15th deputy prime minister under the second Rudd government in 2013. He held various ministerial positions from 2007 to 2013 in the governments of Kevin Rudd and Julia Gillard.

An Australian federal budget is a document that sets out the estimated revenues and expenditures of the Australian Treasury in the following financial year, proposed conduct of Australian government operations in that period, and its fiscal policy for the forward years. Budgets are called by the year in which they are presented to Parliament and relate to a financial year that commences on the following 1 July and ends on 30 June of the following year, so that the 2024 budget brought down in May 2024 relates to the 2024/25 financial year.

<span class="mw-page-title-main">History of the United States public debt</span>

The history of the United States public debt began with federal government debt incurred during the American Revolutionary War by the first U.S treasurer, Michael Hillegas, after the country's formation in 1776. The United States has continuously experienced fluctuating public debt, except for about a year during 1835–1836. To facilitate comparisons over time, public debt is often expressed as a ratio to gross domestic product (GDP). Historically, the United States public debt as a share of GDP has increased during wars and recessions, and subsequently declined.

<span class="mw-page-title-main">2008 Australian federal budget</span>

The 2008 Australian federal budget for the Australian financial year ended 30 June 2009 was presented on 13 May 2008 by the Treasurer of Australia, Wayne Swan, the first federal budget presented by Swan, and the first budget of the first Rudd government.

<span class="mw-page-title-main">2009 Australian federal budget</span>

The 2009 Australian federal budget for the Australian financial year ended 30 June 2010 was presented on 12 May 2009 by the Treasurer of Australia, Wayne Swan, the second federal budget presented by Swan, and the second budget of the first Rudd government. Swan commented that the budget would be tougher than in previous years. "Projected government revenue has fallen by $200 billion since the last budget because of the global economic crisis."

<span class="mw-page-title-main">Australian government debt</span> Amount owed by the Australian federal government

The Australian government debt is the amount owed by the Australian federal government. The Australian Office of Financial Management, which is part of the Treasury Portfolio, is the agency which manages the government debt and does all the borrowing on behalf of the Australian government. Australian government borrowings are subject to limits and regulation by the Loan Council, unless the borrowing is for defence purposes or is a 'temporary' borrowing. Government debt and borrowings have national macroeconomic implications, and are also used as one of the tools available to the national government in the macroeconomic management of the national economy, enabling the government to create or dampen liquidity in financial markets, with flow on effects on the wider economy.

<span class="mw-page-title-main">2010 Australian federal budget</span> Australian federal budget

The 2010 Australian federal budget for the Australian financial year ended 30 June 2011 was presented on 11 May 2010 by the Treasurer of Australia, Wayne Swan, the third federal budget presented by Swan, and the third and final budget of the first Rudd government.

<span class="mw-page-title-main">2012 Australian federal budget</span>

The 2012 Australian federal budget for the Australian financial year ended 30 June 2013 was presented on 8 May 2012 by the Treasurer of Australia, Wayne Swan, the fifth federal budget presented by Swan, and the second budget of the Gillard government. The budget was described as a "battlers" budget with benefits geared towards families and low income earners. It forecast a surplus of $1.5 billion in the financial year ended 30 June 2013.

<span class="mw-page-title-main">2013 Australian federal budget</span>

The 2013 Australian federal budget for the Australian financial year ended 30 June 2014 was presented on 14 May 2013 by the Treasurer of Australia, Wayne Swan, the sixth federal budget presented by Swan. The 2013 budget estimated total revenue of A$387.7 billion and spending of A$398.3 billion, a deficit of A$18 billion, with a return to surplus expected in the 2015 Australian federal budget. Some of the measures in the budget had been announced by various Ministers before the budget.

The Federal Budget 2013–14 was the federal budget of Pakistan for the fiscal year beginning from 1 July 2013 and ending on 30 June 2014. The budget was presented by Finance Minister Ishaq Dar on 12 June 2013 during a session of the National Assembly. This is the first federal budget presented during the tenure of newly elected Prime Minister Nawaz Sharif and his cabinet since the change of government following the nationwide general elections held in 2013.

<span class="mw-page-title-main">Jim Chalmers</span> Australian politician (born 1978)

James Edward Chalmers is an Australian politician. He has been Treasurer of Australia in the Albanese government since May 2022. He is a member of the Australian Labor Party (ALP) and has served as a member of parliament for the division of Rankin since 2013.

<span class="mw-page-title-main">2014 Australian federal budget</span>

The 2014 Australian federal budget was the federal budget to fund government services and operations for the 2014/15 financial year. The 2014 budget was the first delivered by the Abbott government, since the Coalition's victory in the 2013 Australian federal election. Treasurer Joe Hockey presented the budget to the House of Representatives on 13 May 2014.

<span class="mw-page-title-main">Morrison government</span> Australian government, 2018–2022

The Morrison government was the federal executive government of Australia, led by Prime Minister Scott Morrison of the Liberal Party of Australia, between 2018 and 2022. The Morrison government commenced on 24 August 2018, when it was sworn in by the Governor-General of Australia. It was composed of members of the Liberal–National Coalition and succeeded the Abbott (2013–2015) and Turnbull (2015–2018) coalition governments in office, competing against the Australian Labor Party as the major Opposition party. Nationals Leader Michael McCormack was Deputy Prime Minister of Australia from the formation of the Morrison government until June 2021. He was replaced as Leader of the Nationals and Deputy Prime Minister by Barnaby Joyce.

The GST distribution dispute is an ongoing political controversy concerning the distribution of goods and services tax (GST) revenue amongst the Australian states and territories and the federal government. The dispute was originally based upon Western Australia's (WA) dissatisfaction with its low returns, which led to reform in 2018. The 2018 reform guarantees all states and territories a minimum return on their contribution.

<span class="mw-page-title-main">March 2022 Australian federal budget</span> March 2022 Australian budget

The March 2022 Australian federal budget was the federal budget to fund government services and operations. The budget was presented to the House of Representatives by Treasurer Josh Frydenberg on 29 March 2022. It was the ninth budget to be handed down by the Liberal/National Coalition since their election to government at the 2013 federal election, the fourth budget to be handed down by Frydenberg and the Morrison government and the last budget to be handed down by the Morrison government prior to the 2022 Australian federal election. It was the first of two federal budgets to be handed down in 2022; a second budget was delivered in October by the successive government.

<span class="mw-page-title-main">Albanese government</span> Government of Australia since 2022

The Albanese government is the federal executive government of Australia, led by Prime Minister Anthony Albanese of the Australian Labor Party. The Albanese government commenced on 23 May 2022, when Albanese and an interim ministry of four other Labor MPs were sworn into their relevant ministerial portfolios by the Governor-General of Australia. The government is composed of members of the Australian Labor Party. The party initially governed with 77 seats on the floor of the House of Representatives, enough for a two-seat majority. Albanese succeeded the Scott Morrison-led Liberal/National Coalition government (2018–2022), which became unable to continue in government following their defeat in the 2022 federal election. This is the first Labor government to be in office at the federal level since the second Rudd government was defeated by the Coalition at the 2013 election. Deputy Labor leader Richard Marles is serving as Deputy Prime Minister of Australia.

<span class="mw-page-title-main">October 2022 Australian federal budget</span> October 2022 Australian budget

The October 2022 Australian federal budget was the federal budget to fund government services and operations. The budget was presented to the House of Representatives by Treasurer Jim Chalmers on 25 October 2022. It was the first budget to be handed down by the Australian Labor Party since their election to government at the 2022 federal election. It was the second budget to be handed down in 2022, with the preceding budget being delivered in March by the prior government.

The 2023–24 Australian federal budget is the federal budget to fund government services and operations. The budget was presented to the House of Representatives by Treasurer Jim Chalmers on 9 May 2023. It was the second budget handed down by the Australian Labor Party since their election to government in 2022.

The stage three tax cuts are a taxation policy overseen by the Australian Government, scheduled to come into effect on 1 July 2024. Originally forming the third and last stage of the Turnbull government's personal income tax reforms, stage three was altered in the Morrison government's 2019 budget to include an additional A$90 billion of tax cuts.

References

  1. 1 2 3 4 5 6 7 8 9 10 Chalmers, Jim; Gallagher, Katy (14 May 2024). "Budget Paper 1: Budget Strategy and Outlook" (PDF). Budget 2024–25. ISSN   1326-4133. Archived (PDF) from the original on 30 September 2024. Retrieved 2 June 2024– via The Commonwealth of Australia.
  2. ↑ "Budget 2024-25". Budget.gov.au. Archived from the original on 19 April 2024. Retrieved 20 April 2024.
  3. ↑ "2024-25 Pre-Budget submissions". Treasury . 25 January 2024. Archived from the original on 20 April 2024. Retrieved 20 April 2024.
  4. ↑ Crowley, Tom (19 April 2024). "For the first time this term, inflation may not dominate the budget. What will?". ABC News . Archived from the original on 19 April 2024. Retrieved 20 April 2024.
  5. ↑ Yates, Andrew; Rynne, Brendan; Lum, Alia. "Australian Federal Budget 2024". KMPG Australia . Archived from the original on 20 April 2024. Retrieved 20 April 2024.
  6. ↑ Crowley, Tom (6 May 2024). "Federal budget to haul in extra cash once again, but less than in previous years". ABC News. Archived from the original on 13 May 2024. Retrieved 13 May 2024.
  7. ↑ Roberts, Georgia; Lowrey, Tom (13 March 2024). "'No big cash splashes' in budget, says Chalmers, but more of budget windfalls will be spent". ABC News . Archived from the original on 20 April 2024. Retrieved 20 April 2024.
  8. ↑ Orlando, Adam (14 May 2024). "May Budget 2024: Surplus 'not end in itself' amid inflation focus". mining.com.au. Retrieved 14 May 2024.
  9. ↑ Worthington, Brett (14 March 2024). "As the federal budget approaches, so begins Jim Chalmers's great expectation management game". ABC News . Archived from the original on 19 April 2024. Retrieved 20 April 2024.
  10. ↑ Hurst, David (22 May 2022). "Australia's government is changing after nine years of the Coalition – what happens next?". The Guardian . Retrieved 20 April 2024.
  11. ↑ "Australia posts first budget surplus in 15 years as tax revenues soar". Reuters . 22 September 2023. Archived from the original on 30 September 2023. Retrieved 20 April 2024.
  12. ↑ Vidler, Adam (22 September 2023). "'Biggest surplus ever': Chalmers announces $100 billion budget turnaround". Nine News . Archived from the original on 3 January 2024. Retrieved 20 April 2024.
  13. ↑ Greene, Andrew; Cowley, Tom (17 April 2024). "Richard Marles unveils $50 billion defence spending increase over next decade". ABC News (Australia) . Archived from the original on 20 April 2024. Retrieved 20 April 2024.
  14. 1 2 Jeffrey, Daniel (13 May 2024). "The federal budget is almost upon us. This is what you can expect from it". 9 News. Archived from the original on 13 May 2024. Retrieved 13 May 2024.
  15. ↑ Borys, Stephanie (14 May 2024). "Millions pledged to cover fee-free TAFE to get more workers into housing construction". ABC News. Archived from the original on 13 May 2024. Retrieved 14 May 2024.
  16. 1 2 3 4 5 Roberts, Georgia (15 May 2024). "Opposition to support energy bill relief, other budget measures". ABC News. Archived from the original on 14 May 2024. Retrieved 15 May 2024.
  17. 1 2 Dahlstrom, Michael (14 May 2024). "Federal Budget 2024: Billion dollar detail to make Australia 'better for our kids' future'". yahoo! News. Archived from the original on 15 May 2024. Retrieved 15 May 2024.
  18. ↑ Karp, Paul; Hannam, Peter (14 May 2024). "Federal budget to remain in the black with forecast surplus of $9.3bn for 2023-24". The Guardian. Retrieved 14 May 2024.
  19. ↑ Britton, Alexander (15 May 2024). "The Australian budget is big. Let's break it down". SBS News. Archived from the original on 14 May 2024. Retrieved 15 May 2024.
  20. ↑ Crowley, Tom (15 May 2024). "Treasurer says $300 energy bill relief could not have been means tested". ABC News. Archived from the original on 15 May 2024. Retrieved 16 May 2024.
  21. 1 2 Lang, Sydney (15 May 2024). "Social and support sectors react with disappointment to federal budget". SBS News. Archived from the original on 15 May 2024. Retrieved 15 May 2024.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.