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Budget 2024-2025

Australia’s latest budget prioritizes relief and investment. With tax cuts, energy bill relief, and housing investments, it aims to ease cost-of-living pressures while fostering a renewable energy future. Significant allocations to healthcare, education, and small businesses underscore the government’s commitment to resilience and growth.

Here are the bullet points summarizing the key sections of the Budget Overview:


Cost of Living Help and a Future Made in Australia


  • Easing pressures today and investing in a better future.
  • Australia’s economy is better placed to handle global challenges.
  • Government’s responsible economic management has helped ease inflationary and budget pressures.
  • Inflation is now less than half its peak and almost half of what it was around the middle of 2022.
  • Unemployment is near a 50-year low, and real wages growth has returned.
  • Australia recorded the second strongest budget balance among G20 countries.
  • The Budget forecasts a second surplus in 2023–24, representing the first back-to-back surplus in nearly two decades.

Key Budget Initiatives


  • Easing Cost-of-Living Pressures:
    • Tax cuts for 13.6 million Australian taxpayers.
    • $3.5 billion in energy bill relief.
    • Waiving $3 billion in student debt.
    • $1.9 billion to increase Commonwealth Rent Assistance.
    • Cheaper medicines through a $3 billion agreement with community pharmacies.
  • Building More Homes for Australians:
    • New housing investment of $6.2 billion.
    • Additional $1 billion to help states and territories build more homes.
    • More student accommodation.
    • $16.5 billion additional funding for infrastructure projects.
  • Investing in a Future Made in Australia:
    • $22.7 billion to become a renewable energy superpower.
    • $1.1 billion to reform higher education.
    • $466.4 million to advance Australia’s quantum computing capabilities.
  • Strengthening Medicare and the Care Economy:
    • $2.8 billion to strengthen Medicare.
    • $3.4 billion for new and amended listings on the Pharmaceutical Benefits Scheme.
    • $2.2 billion to improve the aged care system.
    • $888.1 million for mental health care.
  • Broadening Opportunity and Advancing Equality:
    • $925.2 million for victim-survivors leaving violent intimate partner relationships.
    • $1.1 billion to pay superannuation on Government-funded Paid Parental Leave.

Budget at a Glance


  • An inflation-fighting and future-making budget.
  • Responsible fiscal and economic management has returned the budget to surplus faster than any major advanced economy.
  • Inflation is the primary focus, with measures expected to see headline inflation return to the target band by the end of 2024.
  • Gross debt as a share of the economy is lower over the next decade.

Responsible Economic Management


  • Improved the cumulative underlying cash balance by $214.7 billion.
  • Found $104.8 billion in responsible savings, spending reprioritisations, and budget improvements.
  • Returned 82% of tax upgrades to the budget over the forward estimates.
  • Lowered the projected peak in gross debt as a share of GDP from 44.9% to 35.2%.

Global and Domestic Economic Outlook


  • Global growth is forecast to remain subdued over the next few years.
  • Australia’s economy faces challenges from a position of strength, with inflation now less than half of its peak.
  • The labour market remains resilient, with unemployment near historic lows.
  • Real GDP is expected to grow by 1¾ per cent in 2023–24.

Easing Cost-of-Living Pressures


  • Tax cuts averaging $36 a week for all Australian taxpayers.
  • Energy bill relief for households and small businesses.
  • Waiving student debt for more than 3 million Australians.
  • Increased Commonwealth Rent Assistance.
  • Cheaper medicines.

Support for Renters


  • Increased Commonwealth Rent Assistance by a further 10%.
  • Boosted support for nearly 1 million households.
  • Extended freeze on deeming rates for income support recipients.

Cheaper Medicines


  • Up to $3 billion agreement with community pharmacies.
  • Freeze on maximum Pharmaceutical Benefits Scheme patient co-payment for pensioners and other concession cardholders.

Supporting Students


  • $3 billion in student debt relief.
  • Cap on HELP indexation rate.

Building More Homes for Australians


  • $6.2 billion in new housing investment.
  • Additional $1 billion to states and territories for new housing.
  • $1.9 billion for a 10% increase in Commonwealth Rent Assistance.
  • $16.5 billion for new and existing infrastructure projects.

Better Transport for Cities, Regions, and Suburbs


  • $16.5 billion over 10 years for infrastructure projects.
  • Investments in New South Wales, Victoria, Queensland, South Australia, Western Australia, Tasmania, Northern Territory, and ACT.

Investing in a Future Made in Australia


  • $22.7 billion package to attract investment in key industries and renewable energy.
  • $6.7 billion production tax incentive for renewable hydrogen.
  • $1.7 billion to promote net zero innovation.
  • $1.5 billion to strengthen battery and solar panel supply chains.

Strengthening Medicare and the Care Economy


  • $2.8 billion to strengthen Medicare.
  • $3.4 billion for new and amended listings on the Pharmaceutical Benefits Scheme.
  • $2.2 billion to improve aged care.
  • $888.1 million for mental health care.

Broadening Opportunity and Advancing Equality


  • $925.2 million for victim-survivors of intimate partner violence.
  • $1.1 billion for superannuation on Government-funded Paid Parental Leave.

Support for Small Businesses


  • $641.4 million in targeted support for small businesses.
  • $290 million to extend the $20,000 instant asset write-off.
  • $3.5 billion in energy bill relief for small businesses.
  • Financial and mental wellbeing support.

A More Resilient Australia


  • $138.7 million to improve disaster response and resilience.
  • $174.6 million for new water infrastructure projects.
  • $519.1 million from the Future Drought Fund.

Strengthening Australia’s Place in the World


  • Over $2 billion in development assistance to the Pacific.
  • $505.9 million to deepen ties with Southeast Asia.
  • Abolishing 457 nuisance tariffs.
  • Simplifying trade and supporting exporters.
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