Federal Budget Big Picture 2023/24

Australian Economic Outlook

Treasury is forecasting economic growth to slow to 1.5% in 2024 before recovering by 2025. Inflation is thought to have now peaked and is expected to return to target in 2024-25. In saying that, there is still some pain to go for households experiencing price pressures and further interest rate hikes to come. Unemployment will continue to remain historically low in the short-term, however we may see this easing with Australia’s population growth and high migration rates in 2023-24.

Medicare Bulk Billing Incentive

The bulk-billing incentive for General Practitioners will triple for most consultations with children under 16, pensioners and other Commonwealth concession card holders. The incentive applies to:

• All face-to-face and telehealth general practices services between 6 and 20 minutes long
• All other face-to-face general practice consultations
• Longer telehealth and general practice consultations where a patient is registered with their regular practice through MyMedicare

Rent Assistance

The Government will increase the maximum rates of Commonwealth Rent Assistance by 15% easing pressures on renters.

New incentives are also being offered to encourage the supply of housing from managed investment trusts.

Energy Bill Relief Plan

As an effort to neutralize price rises for this year and 2024, energy bill relief is set to reduce eligible household bills by up to $500 from July 2023. People such as pensioners, veterans, concession card holders and people on government support payments should see a rebate on their electricity bills from this plan.

Up to $650 will also be paid to small businesses.

JobSeeker Recipients

The JobSeeker rate will permanently increase for all recipients by $40 a fortnight.

Biosecurity Measures

From an agriculture consideration, the Budget has allowed for the much-needed support of Australia’s biosecurity system. An extra billion dollars will be provided over four years to strengthen the system. However, the cost of the measure will be partly offset through a “biosecurity protection levy” on Australian primary producers commencing in 2024.

Conclusion

Labor have attempted to provide a balanced response to the challenge of supporting households in an economy of high inflation and government debt. How effective this budget will be in dealing with these issues remains to be seen.

For details about the tax impact on individuals and businesses in the Federal Budget, Kirsten Roberts has covered that in her article here.

If you would like assistance on the Federal Budget items that relate to you, our team at BLG Business Advisers can always help, so please talk with us for further advice tailored to your needs.

We wish you and your business every success!

*This information is relevant at the time of publishing and is subject to change*