2024 Australian federal budget
{{Short description|none}}
{{Use Australian English|date=April 2024}}
{{Use dmy dates|date=April 2024}}
{{Infobox government budget
|year=2024
|title=Australian federal budget
|bill=|bill_link=|image=Australian federal budget 2024-25 logo.png
|imagesize=250px|date_submitted=|submitter=|submitted_to=House of Representatives|presented=14 May 2024
|passed=|parliament=47th Parliament of Australia|party=Australian Labor Party
|government=Albanese Government
|treasurer=Jim Chalmers
|Total_Expenditures={{AUD|734.5 billion}}
|tax_cut={{AUD|1888}} on average
|debt_payment={{AUD|23.8 billion}}
|url={{URL|budget.gov.au}}
|previous_budget=2023 Australian federal budget
|previous_year=2023
|next_budget=2025 Australian federal budget
|next_year=2025
}}
The 2024 Australian federal budget was presented on 14 May 2024 by Treasurer Jim Chalmers.{{Cite web |title=Budget 2024-25 |url=https://budget.gov.au/ |access-date=20 April 2024 |website=Budget.gov.au |archive-date=19 April 2024 |archive-url=https://web.archive.org/web/20240419180944/https://budget.gov.au/ |url-status=live }} The budget dictated how the Australian Government would allocate an estimated {{AUD|715 billion}} across the federal government and to the state and territory governments. It was the third federal budget handed down by the Labor Party since their victory in 2022. The consultation period described the budget as focused on support for Australians and creating a "stronger, more inclusive and more sustainable economy".{{Cite web |date=25 January 2024 |title=2024-25 Pre-Budget submissions |url=https://treasury.gov.au/consultation/2024-25-pre-budget-submissions |access-date=20 April 2024 |website=Treasury |archive-date=20 April 2024 |archive-url=https://web.archive.org/web/20240420110806/https://treasury.gov.au/consultation/2024-25-pre-budget-submissions |url-status=live }}
Pre-budget
= Predictions and commentary =
With global inflation decreasing and markets stabilising, the ABC predicted that the budget would focus less on mitigating the impacts of inflation and instead address "trouble in China, sluggish growth, and the ever-present pressures on government spending." All three 'threats' to the budget have been raised by the International Monetary Fund, with a property-driven slow-down effecting the Chinese economy and its import-export markets and the anticipated recommendations from a number of inquiries across the health and aged care, education and social services sectors.{{Cite news |last=Crowley |first=Tom |date=19 April 2024 |title=For the first time this term, inflation may not dominate the budget. What will? |url=https://www.abc.net.au/news/2024-04-19/inflation-may-not-dominate-budget-night-what-will/103742680 |access-date=20 April 2024 |work=ABC News |archive-date=19 April 2024 |archive-url=https://web.archive.org/web/20240419181753/https://www.abc.net.au/news/2024-04-19/inflation-may-not-dominate-budget-night-what-will/103742680 |url-status=live }} Global consulting firm KPMG anticipates the budget will focus on cost of living challenges, investment in infrastructure, and emission reduction initiatives.{{Cite web |last1=Yates |first1=Andrew |last2=Rynne |first2=Brendan |last3=Lum |first3=Alia |title=Australian Federal Budget 2024 |url=https://kpmg.com/au/en/home/insights/2024/05/federal-budget-australia.html |access-date=20 April 2024 |website=KMPG Australia |archive-date=20 April 2024 |archive-url=https://web.archive.org/web/20240420110803/https://kpmg.com/au/en/home/insights/2024/05/federal-budget-australia.html |url-status=live }}
Independent economist Chris Richardson described the government's position as "rolling in cash" as a result of temporary improvements from a stronger-than-expected economy resulting in greater income tax receipts, and higher commodity prices pushing corporate tax revenue up.{{cite news |last=Crowley |first=Tom |date=6 May 2024 |title=Federal budget to haul in extra cash once again, but less than in previous years |url=https://www.abc.net.au/news/2024-05-06/federal-budget-to-haul-in-extra-cash-once-again/103806722 |url-status=live |archive-url=https://web.archive.org/web/20240513061131/https://www.abc.net.au/news/2024-05-06/federal-budget-to-haul-in-extra-cash-once-again/103806722 |archive-date=13 May 2024 |access-date=13 May 2024 |work=ABC News}} Richardson however advised against "using temporary good news to spend big", noting that these financial improvements are likely to reduce. During a press conference with the Committee for Economic Development in Australia, Chalmers said there would be no "big cash splashes", in part due to already declining iron ore prices and "softening labour market", and that much of the leading items had already been announced including an expansion of the NDIS, university reforms and aged care changes.{{Cite news |last1=Roberts |first1=Georgia |last2=Lowrey |first2=Tom |date=13 March 2024 |title='No big cash splashes' in budget, says Chalmers, but more of budget windfalls will be spent |url=https://www.abc.net.au/news/2024-03-13/treasurer-to-temper-great-budget-surplus-expectations/103583572 |access-date=20 April 2024 |work=ABC News |archive-date=20 April 2024 |archive-url=https://web.archive.org/web/20240420110805/https://www.abc.net.au/news/2024-03-13/treasurer-to-temper-great-budget-surplus-expectations/103583572 |url-status=live }}
It was forecast that inflation could return to the target band of between two and three per cent, by the end of 2024.{{cite news |last=Orlando |first=Adam |date=14 May 2024 |title=May Budget 2024: Surplus 'not end in itself' amid inflation focus |url=https://mining.com.au/may-budget-2024-surplus-not-end-in-itself-amid-inflation-focus/ |access-date=14 May 2024 |work=mining.com.au}}
== Political importance ==
Political reporter Brett Worthington surmised in his analysis that the federal budget will likely deliver an overall surplus for the second year in a row with massive political significance. The Australian Labor Party is frequently criticised by the opposing Liberal Party for what is seen as financial mismanagement, however Worthington highlights that the Liberal-led coalition had failed to deliver a single surplus budget during its nine years of power until 2022.{{Cite web |last=Worthington |first=Brett |date=14 March 2024 |title=As the federal budget approaches, so begins Jim Chalmers's great expectation management game |url=https://www.abc.net.au/news/2024-03-14/federal-budget-approaches-chalmers-expectation-managment/103585778 |access-date=20 April 2024 |website=ABC News |archive-date=19 April 2024 |archive-url=https://web.archive.org/web/20240419070606/https://www.abc.net.au/news/2024-03-14/federal-budget-approaches-chalmers-expectation-managment/103585778 |url-status=live }}{{Cite news |last=Hurst |first=David |date=22 May 2022 |title=Australia's government is changing after nine years of the Coalition – what happens next? |url=https://www.theguardian.com/australia-news/2022/may/22/australias-government-is-changing-after-nine-years-of-the-coalition-what-happens-next |access-date=20 April 2024 |work=The Guardian}} The 2023{{Ndash}}24 budget was the first federal surplus in 15 years, with a final surplus of more than {{AUD|22 billion}}, an improvement of more than {{AUD|100 billion}} since Labor won the 2022 federal elections from the coalition.{{Cite news |date=22 September 2023 |title=Australia posts first budget surplus in 15 years as tax revenues soar |url=https://www.reuters.com/markets/australia-will-announce-a221-bln-budget-surplus-year-ended-june-2023-2023-09-21/ |access-date=20 April 2024 |work=Reuters |archive-date=30 September 2023 |archive-url=https://web.archive.org/web/20230930083701/https://www.reuters.com/markets/australia-will-announce-a221-bln-budget-surplus-year-ended-june-2023-2023-09-21/ |url-status=live }}{{Cite news |last=Vidler |first=Adam |date=22 September 2023 |title='Biggest surplus ever': Chalmers announces $100 billion budget turnaround |url=https://www.9news.com.au/national/budget-surplus-largest-ever-jim-chalmers-claims/e0cd8885-fd9f-4af1-8aae-df5d1b717870 |access-date=20 April 2024 |work=Nine News |archive-date=3 January 2024 |archive-url=https://web.archive.org/web/20240103121640/https://www.9news.com.au/national/budget-surplus-largest-ever-jim-chalmers-claims/e0cd8885-fd9f-4af1-8aae-df5d1b717870 |url-status=live }}
Announcements
On Wednesday 17 April, defence minister Richard Marles announced more than {{AUD|50 billion}} of extra funding for the Australian Defence Force over 10 years, bringing total military spending to 2.4% of the national GDP. Marles also announced the budget would include the re-allocation of an additional {{AUD|72.8 billion}} in planned spending, and an immediate {{AUD|1 billion}} injection to "accelerate long-range missiles and targeting systems, as well as lethal autonomous systems." Included in the conference at the National Press Club was a renewed focus on sea passages throughout South-East Asia and projecting Australia's defence capabilities throughout the region.{{Cite web |last1=Greene |first1=Andrew |last2=Cowley |first2=Tom |date=17 April 2024 |title=Richard Marles unveils $50 billion defence spending increase over next decade |url=https://www.abc.net.au/news/2024-04-17/richard-marles-unveils-50b-defence-spending-increase/103734300 |access-date=20 April 2024 |website=ABC News (Australia) |archive-date=20 April 2024 |archive-url=https://web.archive.org/web/20240420075641/https://www.abc.net.au/news/2024-04-17/richard-marles-unveils-50b-defence-spending-increase/103734300 |url-status=live }}
Students, welfare recipients and taxpayers were expected to be significant beneficiaries of the budget. Stage three tax cuts and student debt relief had been announced, with welfare support and energy bill relief highlighted in the lead up to the budget.{{cite news |last=Jeffrey |first=Daniel |date=13 May 2024 |title=The federal budget is almost upon us. This is what you can expect from it |url=https://www.9news.com.au/national/federal-budget-2024-cost-of-living-relief-what-to-expect-anthony-albanese-jim-chalmers-explained/96f5bc56-71c3-4013-ac85-80c403f26953 |url-status=live |archive-url=https://web.archive.org/web/20240513074834/https://www.9news.com.au/national/federal-budget-2024-cost-of-living-relief-what-to-expect-anthony-albanese-jim-chalmers-explained/96f5bc56-71c3-4013-ac85-80c403f26953 |archive-date=13 May 2024 |access-date=13 May 2024 |work=9 News}}
A 6 May announcement included details on a "Commonwealth Prac Payment" of $319.50 per week, to support teaching, nursing, midwifery and social work students during mandatory unpaid placements for their degrees. In an effort to alleviate the housing supply crisis about $90 million is being spent to cover the education costs of 20,000 people which the government hopes will boost the sector.{{cite news |last=Borys |first=Stephanie |date=14 May 2024 |title=Millions pledged to cover fee-free TAFE to get more workers into housing construction |url=https://www.abc.net.au/news/2024-05-08/housing-construction-workers-fee-free-tafe-federal-budget/103819546 |url-status=live |archive-url=https://web.archive.org/web/20240513210836/https://www.abc.net.au/news/2024-05-08/housing-construction-workers-fee-free-tafe-federal-budget/103819546 |archive-date=13 May 2024 |access-date=14 May 2024 |work=ABC News}}
Every household will receive a $300 energy bill credit.{{cite news |last=Roberts |first=Georgia |date=15 May 2024 |title=Opposition to support energy bill relief, other budget measures |url=https://www.abc.net.au/news/2024-05-15/opposition-to-support-energy-bill-relief-other-budget-measures/103848472 |url-status=live |archive-url=https://web.archive.org/web/20240514235610/https://www.abc.net.au/news/2024-05-15/opposition-to-support-energy-bill-relief-other-budget-measures/103848472 |archive-date=14 May 2024 |access-date=15 May 2024 |work=ABC News}} A rebate of $325 has been allocated towards 1 million small businesses receiving an energy bill. There will be a 10 per cent increase to Commonwealth rent assistance.
$1 billion will be spent on crisis and transitional accommodation for women and children fleeing family violence.
Under the 'Future Made in Australia' program, a $22.7 billion investment aims to support renewable energy manufacturing and exports to help fight climate change.{{cite news |last=Dahlstrom |first=Michael |date=14 May 2024 |title=Federal Budget 2024: Billion dollar detail to make Australia 'better for our kids' future' |url=https://au.finance.yahoo.com/news/federal-budget-2024-billion-dollar-detail-to-make-australia-better-for-our-kids-future-112102395.html |url-status=live |archive-url=https://web.archive.org/web/20240515020804/https://au.finance.yahoo.com/news/federal-budget-2024-billion-dollar-detail-to-make-australia-better-for-our-kids-future-112102395.html |archive-date=15 May 2024 |access-date=15 May 2024 |work=yahoo! News}}
Financial measures
= Balance sheet =
It was projected that the budget would provide a surplus for the third year in a row, with a predicted balance of {{AUD|9.3 billion}}.{{cite news |last1=Karp |first1=Paul |last2=Hannam |first2=Peter |date=14 May 2024 |title=Federal budget to remain in the black with forecast surplus of $9.3bn for 2023-24 |url=https://www.theguardian.com/australia-news/article/2024/may/13/australia-federal-budget-2024-preview-surplus-jim-chalmers-treasurer-cost-of-living |work=The Guardian |access-date=14 May 2024}} However, the budget was released with a total annual deficit of {{AUD|23.8 billion}} attributed to cost-of-living relief measures and extensions to some time-limited funding. The annual deficit was originally thought to grow to {{AUD|42.8 billion}} for 2025{{Ndash}}26, however that figure was revised to {{AUD|34.5 billion}} (representing {{AUD|8.3 billion}} in improvements), and is further predicted to decrease to {{AUD|10.1 billion}} by 2027{{Ndash}}28.
The budget includes total government expenditure totalling {{AUD|734 billion}} (26.6% of GDP), an increase from the previous year but projected to reduce from 2025{{Ndash}}26 onwards.{{cite news |last=Britton |first=Alexander |date=15 May 2024 |title=The Australian budget is big. Let's break it down |url=https://www.sbs.com.au/news/article/the-australian-budget-is-big-lets-break-it-down/mufz7dk4i |work=SBS News |access-date=15 May 2024 |archive-date=14 May 2024 |archive-url=https://web.archive.org/web/20240514213722/https://www.sbs.com.au/news/article/the-australian-budget-is-big-lets-break-it-down/mufz7dk4i |url-status=live }}
= Spending and revenue by category =
The 2024-25 Budget Snapshot produced by the Parliamentary Budget Office provides a high-level overview of government spending and revenue projected from the budget. Total Federal Budget Spending was 25.97% of Australia's GDP.
{{Cite web |date=14 May 2024 |title=2024-25 Budget Snapshot |url=https://www.pbo.gov.au/publications-and-data/publications/budget-charts/2024-25-budget-snapshot |url-status=live |access-date=9 November 2024 |website=Parliamentary Budget Office |archive-date=14 October 2024 |archive-url=https://web.archive.org/web/20241014190324/https://www.pbo.gov.au/publications-and-data/publications/budget-charts/2024-25-budget-snapshot }}
| class="wikitable sortable"
|+Federal government spending by major category ! Major category !! Spending !Percent of government spending |
| Social security and welfare
|{{AUD|263 billion}} |36.8% |
| Health
|{{AUD|108.9 billion}} |15.2% |
| General purpose inter-governmental transactions
|{{AUD|99.9 billion}} |14% |
| Other
|{{AUD|60.3 billion}} |8.4% |
| Defence
|{{AUD|44.57 billion}} |6.2% |
| Education
|{{AUD|38.6 billion}} |5.4% |
| General public services
|{{AUD|30.1 billion}} |4.2% |
| Interest
|{{AUD|23.9 billion}} |3.3% |
| Transport and communication
|{{AUD|17.7 billion}} |2.5% |
| Fuel and energy
|{{AUD|16.5 billion}} |2.3% |
| class="wikitable sortable"
|+Federal government revenue by major category !Major category !Revenue !Percent of government revenue |
| Individuals and withholding tax
|{{AUD|335.6 billion}} |47.1% |
| Company tax
|{{AUD|141 billion}} |19.9% |
| Goods and services tax
|{{AUD|92 billion}} |12.9% |
| Non-taxation revenue
|{{AUD|52.6 billion}} |7.4% |
| Excise and customs duty
|{{AUD|47.28 billion}} |6.6% |
| Other taxes
|{{AUD|23 billion}} |3.2% |
| Superannuation fund taxes
|{{AUD|19.8 billion}} |2.8% |
Opposition and crossbench response
The opposition approved of new budget measures that addressed the cost of living. In the days after the budget's release the lack of means testing for the energy bill relief was criticised.{{cite news |last=Crowley |first=Tom |date=15 May 2024 |title=Treasurer says $300 energy bill relief could not have been means tested |url=https://www.abc.net.au/news/2024-05-15/energy-bill-relief-to-every-household-explained/103847656 |work=ABC News |access-date=16 May 2024 |archive-date=15 May 2024 |archive-url=https://web.archive.org/web/20240515112714/https://www.abc.net.au/news/2024-05-15/energy-bill-relief-to-every-household-explained/103847656 |url-status=live }}
Reception
The Australian Council of Social Service said the budget failed to deliver the solutions needed.{{cite news |last=Lang |first=Sydney |date=15 May 2024 |title=Social and support sectors react with disappointment to federal budget |url=https://www.sbs.com.au/news/podcast-episode/social-and-support-sectors-react-with-disappointment-to-federal-budget/s49jrkl87 |work=SBS News |access-date=15 May 2024 |archive-date=15 May 2024 |archive-url=https://web.archive.org/web/20240515035132/https://www.sbs.com.au/news/podcast-episode/social-and-support-sectors-react-with-disappointment-to-federal-budget/s49jrkl87 |url-status=live }} The Salvation Army Australia welcomed any assistance at this time of need. The Australian Conservation Foundation welcomed crucial measures that helped the climate.
References
{{reflist}}
External links
- {{Official website|https://archive.budget.gov.au/2024-25/}}
{{Australian federal budget}}