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April 26, 2023
2023 Australian Federal Budget Announcement Tracker
Track all the key policy announcements in the lead up to the May 9 Australian federal budget.
What you need to know
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This announcement tracker is updated daily. It is current as of: May 8 2023
- The Stage 3 income tax cuts will not be scrapped by the Labor government, costing the budget $245 billion over ten years.
- It has been reported that a budget surplus is expected for 2022-2023.
- Interest payments on Commonwealth Government debt will cost the federal budget $112 billion over five years.
- The Government has announced that it will make changes to the Petroleum Resources Rent Tax (PRRT). These changes will include limiting the proportion of PRRT assessable income that can be offset by deductions to 90% and bringing forward the date that liquefied natural gas projects are expected to pay PRRT. The changes will take effect from July 1 2023, and are expected to raise $2.4 billion.
- A 30% concessional tax rate has been announced on super balances over $3 million.
- The Government has announced it will spend a further $11.3 billion to boost aged care workers' pay by 15%.
Cost of Living
- The Treasurer has committed to providing significant cost of living relief. So far, a focus on energy bills and cheaper medicines has been flagged. The cost of living reforms are expected to cost $14.6 billion. Treasurer Jim Chalmers is adamant these payments will not have an inflationary impact.
- Finance Minister, Katy Gallagher, has stated that the budget will contain a "very significant cost of living package" that will be targeted at "vulnerable Australians".
- The Government has responded to the long-awaited Defence Strategic Review (DSR). So far this response has included:
- $4.1 billion for Long-Range Missile Systems and a sovereign manufacturing capability to produce them in Australia;
- Confirmation of the AUKUS nuclear submarine acquisition, costing up to $368 billion over several decades;
- Initiatives to improve the growth and retention of a highly skilled defence workforce in northern bases;
- Investment in disruptive new technologies to boost ADF capability, in close partnership with Australian industry;
- A commitment to make cuts to several programs currently underway. The specific programs to be cut have not been confirmed but the DSR has indicated several programs could be on the chopping block such as: The Infantry Fighting Vehicle Program, the Self-Propelled Howitzer Program and the Hunter Class Frigate Program.
- The Government has announced a $500m deal to take Canberra-based defence contractor, CEA Technologies Pty Ltd, into public hands.
- The Government has indicated that a sovereign defence manufacturing capability will be a key goal, so that Australia can withstand the threats of naval blockades.
- The Government has announced that it will invest $400 million to offer $50,000 bonuses to ADF personnel who agree to sign up for a further three years.
- The Government has committed to providing a $9 billion boost in childcare subsidies which include increasing the maximum subsidy rate by up to 90 per cent for the first child in care.
- The Government announced it is prepared to invest an additional $3.7 billion for a five-year national skills agreement, in addition to $400 million to support another 300,000 free-free places at TAFE and vocational education.
- The Government has indicated its intention to undertake school-reform by acting on the OECD’s Education Policy Outlook report which has just been released.
- The Government has promised $3.5 million in funding for teachers to reduce increasing rates of disruptive behaviour in classrooms.
Energy & Environment
- The Treasurer has flagged introducing measures to help reduce the effect of increased energy bills on consumers. These measures will include $3 billion in energy bill relief in the form of credits to eligible people on income support, pensions, recipients of the family tax benefit and to small businesses.
- The Treasurer has also indicated that the budget will contain measures providing 5 million households and 1 million businesses with up to $500 in assistance for energy bills. The scheme will be targeted at pensioners, small businesses and those who receive welfare payments.
- $314 million in tax cuts for businesses that "go green". Small and medium-size businesses that invest in energy efficient equipment could be eligible for a tax deduction of up to $20,000.
- The Government has announced a $12/GJ price cap on domestic gas prices until July 1 2025.
- The Government has promised financial assistance for people on pensions and welfare payments to pay energy bills.
- $262 million in funding has been announced for national parks.
- Energy Minister, Chris Bowen has announced the creation of a National Net Zero Authority. The Authority will cost $23 million in its first year.
- The Treasurer has announced a commitment to boost the renewable energy sector by:
- The creation of a “sovereign green bonds” program to be rolled out mid-2024 to raise finance for public projects that support Australia’s net zero transformation;
- Co-funding a development phase of an “Australian Sustainable Finance Taxonomy” – a project to help investors more easily target their funds towards particular kinds of sustainability projects;
- Providing $4.3 million in funding for ASIC to expand “surveillance and enforcement functions” on businesses making green claims.
- The Government has announced plans to save $1 billion by extending the dispensing time frame from 30 to 60 days for medicines on the PBS.
- Reports indicate the Government will allocate $2.2 billion for Medicare reforms, including incentives for after-hours doctors.
- The Government has announced it will ban nicotine and non-nicotine vapes. The only permitted use will be therapeutic vapes, which require a prescription.
- The Government will increase the tobacco excise by 5% over three years, raising over $3 billion in tax revenue.
- $10 billion has been announced for the Housing Australia Future Fund, which will commit to building 30,000 new rental properties over 5 years. This will likely include a minimum of 1,200 social and affordable houses in each state and territory.
- The Government has authorised $9.5 million of spending for a civics and awareness campaign to educate the public about the proposal for an Aboriginal and Torres Strait Islander Voice in the Constitution.
- The Government has promised $1.5 million for the Museum of Australian Democracy and Constitution Education Fund Australia to spread awareness of referendum processes ahead of the Aboriginal and Torres Strait Islander Voice referendum.
- The Government has announced that The Northern Territory will receive over $14 million for additional policing in Alice Springs, as part of an initiative aimed at reducing the burden of crime in Indigenous communities.
- The Government has announced it will invest approximately $240 million into a new stadium at Hobart's Macquarie Point.
- $535 million for national institutions such as the National Gallery, National Museum of Australia, and National Archives of Australia.
- The Government has announced a 90 day review into infrastructure projects on the former Government's infrastructure pipeline. It is likely that some of these projects will be axed. However, the Prime Minister has announced that there will be no cuts to any infrastructure projects that already have allocated funding.
- The Snowy Hydro project will be delayed for a further one or two years.
- The Government has so-far rejected calls to lift the JobSeeker payment to approximately $1000 per fortnight, saving $24 billion. However, the Treasurer has indicated that there likely will be an increase in the JobSeeker payment for those over 55. There has been speculation that there will be smaller increases for other age groups as well.
- The Government has announced it will remove the five-year averaging of the wage component of the indexation calculation, which will boost funding for community services by $4 billion. This change will affect a number of key services such as Medicare benefits schedule, commonwealth home support, affordable housing and homelessness, mental health, First Nations health and community legal services.
- The Government has announced that single-parents to access special welfare payments until their child turns 14. Currently, payments cease when a child turns 8. These changes will take effect from 20 September 2023.
- The Government has committed $720 million in further funding for the NDIS.
- The Government has committed to a major overhaul of the NDIS. Specific details have not been confirmed, but Minister Shorten has promised a crack-down on fraudsters and “dodgy” service providers.
- The Government has announced that federal budget will include approximately $50 million in funding to target fraud and non-compliant payments within the NDIS as part of a new scheme.
- The Government has committed to increase the number of hours seniors may work before it affects their pensions.
- The Treasurer has announced that there will likely not be "big" changes in the Budget on Tuesday night when it comes to employment services.
- The Government has announced it will scrap the ParentsNext program from next year and stop compulsory obligations for participants immediately.
- The Treasurer has stated that the budget will attack entrenched disadvantage by supporting place based initiatives alongside philanthropic organisations.
- Labor has committed to increased access to paid parental leave for 6 months from July 2023.
- The Government has announced that measures aimed at helping women achieve parity in the workplace will be a main focus of the budget.
- The Government has signalled its intention to scrap the Australia's Significant Investor Visa.
- The Government will scrap the dedicated agricultural visa.
- The Government has announced plans to introduce a special category visa for New Zealand citizens.
- The Government will announce a new, three-tiered approach to skilled worker visas, centred around raising the temporary skilled migration income threshold.
- The Government has proposed to change the rules for payment of superannuation to workers. The proposal indicates that superannuation will be required to be paid to workers on pay day, rather than quarterly.
- The Government has announced that more than $10m will be dedicated to improve the communications network used by first responders.
- The Government has indicated that a soon-to-be-launched development policy will boost and change the way Australia delivers foreign aid to the pacific region.
Long term state of the budget
Key Treasurer statements
- “The Albanese Government will always look to provide support where we can to those most in need, where it is responsible and affordable to do so, and weighed up against other priorities and fiscal challenges. While we can’t fund every good idea, there will be measures in the May Budget to address disadvantage. This will include energy bill price relief that prioritises those on payments and pensions.” - Treasurer, Jim Chalmers
- “a guiding light when it comes to putting the Budget together: cost‑of‑living relief without adding to inflation but also laying the foundations of future growth and also trying to make our economy more resilient to these sorts of international shocks that we're dealing with right now.” - Treasurer, Jim Chalmers
- “The Government must take responsibility – it is time for the government to recognise that inflation comes from Canberra. The first thing the government can do in the budget is to re-establish a commitment to budget balance” - Shadow Treasurer, Angus Taylor.
- “We know we have a government that wants to hit Australians with taxes on franking credits which are so essential to particularly older Australians’ incomes. We know this is a government that is coming after Australian superannuation and we know this is a government that would love to get rid of the stage-three tax cuts, despite the fact that Australians are being pushed up into higher tax bracket with income tax brackets. And with inflation, it’s now the time to take pressure off Australians and the income tax they are paying but this is a government that would support pressure, extra pressure on.” - Shadow Treasurer, Angus Taylor.