Federal Budget 2023
Check out our recap of the announcements made by the Government in the Federal Budget and how they may impact your day-to-day life.
Cost of Living
The Budget includes measures to assist with providing support to vulnerable Australians, including a $11.3 billion investment that will fund a 15% pay rise for aged care workers, $9 billion in childcare subsidies, $2.2 billion for primary health care and $1.9 billion to extend sole parent payments (for children up to the age of 14).
The Budget also includes a $500 energy rebate for 5.5 million households and 1 million businesses. There is an income threshold cut-off for this, which means some households may miss out on the $500 relief payment.
Investment returns earned from superannuation balances over $3 million will be taxed at a 30% rate. This will be effective from the 1st of July 2025 and it is expected to raise $1 billion in the first 2 years.
There will be an increase to the Petroleum Resource Rent Tax that will bring in $2.4 billion in the next 5 years. This tax is effectively ‘rent’ paid to the Government for any profits that are made by oil and gas related projects.
The smoking tax will increase tobacco and tobacco related products by 5% a year for the next 3 years starting in September 2023. This is expected to raise $3.3 billion over its duration.
Health and Aged Care
The Budget aims to improve health and aged care services for around 11.6 million pensioners, concession card holders and those under 16 by investing $3.5 billion to help general practitioners provide free bulk billed medical consultations. Certain telehealth consultations will also be eligible to be bulk billed.
$260.2 million will be invested over two years to extend psychosocial support for people with severe mental illness who do not qualify for the National Disability Insurance Scheme (NDIS).
$900,000 will be invested in a 10-year Action Plan to address the health disparities experienced by the LGBTQI+ communities in Australia. An advisory group will be created to assist with developing and actioning this plan.
Vaping laws will be tightened, targeting the importation of illegal vapes and the regulation of colours, flavours and nicotine levels. $29.5 million will be invested to support people attempting to quit smoking and vaping whilst $63.4 million will be invested for national awareness campaigns.
Education and Childcare
$4.9 billion will be allocated to boost support for around 1.1 million Australians looking for work, studying or completing an apprenticeship. Additionally, $32 million will be invested in grants to upgrade school equipment and infrastructure at over 1,300 schools and $18.7 million will be invested over 4 years for expanding higher education programs.
The Budget will allocate $55.31 billion across the next 4 years to make childcare more accessible and affordable. $72.4 million will also be spent across 5 years to support the training of workers within early childhood and the childcare sector.
Commonwealth Rent Assistance is set to be increased by 15% or the equivalent of $31 per fortnight, for people renting in the private market and community housing. This payment benefits people receiving welfare payments such as JobSeeker or the Aged Pension.
There will be a $40 per fortnight increase for JobSeeker payment recipients and those on Youth Allowance, Austudy and any other welfare income payment support.
Single parents will be able to receive payments as part of a single parenting payment until their youngest child turns 14, an increase from the current age of 8.
Environment and Energy Bills
The Budget will set up an additional $2 billion fund for investing in the production of renewable hydrogen called the “Hydrogen Headstart” program.
A further $1 billion will be allocated to provide low-cost loans for households looking to upgrade their homes to become energy efficient, such as double glazing, solar panels and other home improvements.