What we know about the 2024 Budget so far: The Aussies set to gain the most trends now
Treasurer Jim Chalmers will hand down his second full-year budget on Tuesday, vowing to shore up the economy's near-term growth and deliver cost of living relief without adding to inflation.
'This is not the time for scorched earth austerity ... this is not the time to slash and burn in the budget, when people are doing it tough and when growth in our economy is weaker than we would like it to be,' he said last week.
So what will Tuesday's budget look like for you? Here's what we know so far:
Treasurer Jim Chalmers will hand down his second full-year budget on Tuesday, vowing to shore up the economy's near-term growth and deliver cost of living relief without adding to inflation
The big picture
Labor has declared fighting inflation the 'primary focus' of the budget, and is widely anticipated of delivering back-to-back budget surpluses fuelled by soaring company and income tax receipts.
Forecasted gross debt is now projected to be $152bn lower in 2023-24, with the budget set to show gross debt climbing to $904bn in the financial year, lower than projections prior to the May 2022 election which showed this figure eclipsing $1 trillion.
The Treasurer has said the lower debt levels will mean that taxpayers will save approximately $80bn in interest costs over the decade.
But despite achieving a second consecutive surplus, forecast deficits are expected to deepen over the next four years as the government is forced to lift spending while revenue upgrades are reduced.
Help with cost of living pressures
The centrepiece of cost-of-living relief in the May budget will be the overhauled stage 3 tax cuts, announced by Prime Minister Anthony Albanese in January.
The measures, slated to take effect on July 1, will bolster the take-home pay of every taxpayer - rather than middle and high income earners who benefited under Morrison-era iteration of the tax package.
Alongside the stage 3 tax cuts, Dr Chalmers has indicated there will be 'substantial' help for households, however 'it won't be identical to what we've seen in the past.'
The door has also been left open for additional power bill relief and a boost to rental assistance, but Dr Chalmers has downplayed expectations the government would listen to its own Economic Inclusion Advisory Committee and give JobSeeker recipients a 'substantial' increase.
The Treasurer has also indicated there will be some help with power bills, while pensioners and others on fixed incomes would not miss out.
Housing will also be a 'big focus' of the budget, Dr Chalmers has said, with the government on Friday unveiling an $11.3bn package aimed at boosting the supply of social and affordable homes
Housing
Housing will also be a 'big focus' of the budget, Dr Chalmers has said, with the government on Friday unveiling an $11.3bn package aimed at boosting the supply of social and affordable homes.
The lion's share of the package will be a $9.3bn worth of funding to establish the new five-year National Agreement on Social Housing and Homelessness, with support to be administered by state and territory governments.
An additional $1bn will be directed towards crisis and transitional accommodation for families and children feeling violent circumstances as voters demand the Labor government plays a greater role in eliminating family and domestic violence.
States and territories are also set to benefit from a further $1bn for road, energy and other infrastructure needed to support new home construction.
The government has previously announced it will spend an additional $90m to boost the number of skilled workers in the construction and housing sector in a bid to help close the national skills gap and bolster supply.
Tax
Aside from the stage three tax cuts, Dr Chalmers has also hinted at tax reform to the encourage businesses to grow.
While the Treasurer has ruled out changes to negative gearing and capital gains tax, he has suggested there could be reforms to help incentivise investment.
'We have indicated that we are prepared to use the tax system in the service of our big national objectives, as the budget will balance the cost of living ... with our responsibilities to the future,' Dr Chalmers said.
Whether the budget will include a broad range of measures for business, such as the instant asset write-off which has been included in previous budgets, or more focussed tax credits and deductions that align with its 'future made in Australia' scheme, remains to be seen.
Future made in Australia
One of the budget's biggest priorities is 'a future made in Australia', centring around a commitment to strengthen the economy as it transitions to a clean-energy future.
