2024 Australian Federal Budget Preview

Australian Treasurer Jim Chalmers will hand down his third budget on May 14, 2024. Based on pre-budget announcements, we are expecting a second consecutive budget surplus—showing a significant improvement over the initial forecasts.

What's in Store?

Highlights include tax reforms, significant investments in the local manufacturing sector under the Future Made in Australia Agenda, and support for domestic violence survivors through the Leaving Violence Program.

Key Highlights:

• Tax Reforms: Modifications to the stage three tax cuts, aiming to benefit lower to middle-income earners, while retaining the 37% bracket with an increased upper limit.
• Support for Domestic Violence Survivors: Introduction of the Leaving Violence Program with an allocation of $925 million over five years.
• Manufacturing and Energy Investments: Over $2 billion directed towards the Hydrogen Headstart Program and substantial funds for initiatives like the Solar SunShot Program and critical minerals investments.

Economic Outlook:

The budget anticipates a surplus of approximately $13.4 billion, marking an increase from last year’s $4.2 billion surplus. However, there are predictions of a deficit from the next year onwards due to falling commodity prices and rising fiscal spending.

Download Full Report

For those interested in a more comprehensive analysis, GovConnex offers an in-depth look at the upcoming federal budget, covering all announcements, economic forecasts, and policy changes.