The Federal Government has handed down its 2023-24 Budget which outlines its economic forecasts and identifies key priorities including cost of living relief and growing the economy.
COMMENTS ON THE 2023-24 FEDERAL BUDGET
The Treasurer announced a package of cost-of-living measures, including up to $3bn in energy bill relief (expected to reduce power bills by up to $500 for five million households) and $1.3bn for home energy upgrades. These measures have been designed to provide relief without adding inflationary pressures.
In broad economic terms, a Budget surplus of $4.2bn is forecast in 2022-23, but an underlying cash deficit of $13.9bn is expected in 2023-24 (and a $35.1bn deficit for 2024-25).
Australia’s economic growth is expected to slow from 3.25% in 2022-23 to 1.5% in 2023-24 but is predicted to recover to 2.25% in 2024-25.
While inflation remains elevated at 6% for this year, it is expected to fall to 3.25% in 2023-24 and return to the Reserve Bank of Australia’s target band of 2-3% in 2024-25, which the Treasurer stated was still higher than the Government would like.
Below are some of the key highlights from this year’s Budget.
Personal Taxation Measures
Small Business Measures
Business Taxation Measures