The first Budget of the Labor government “demands a different response” as Treasurer Jim Chalmers deals with tough economic conditions.
Chalmers’ first speech highlighted issues facing Australians including the recovery from the COVID-19 pandemic, rising inflation and costs of living and environmental disasters.
“This Budget delivers on the Government’s commitments by providing responsible cost-of-living relief, building a stronger, more resilient and more modern economy and repairing the Budget to pay for what’s important.
“This Budget confronts the challenges that have been ignored for too long and seizes the opportunities that won’t wait any longer. This is a solid and sensible Budget, suited to the times we are in and the conditions we confront.”
He said he expected inflation would peak at 7.75% by the end of this year before moderating over the next two years. This would enable real wages to start growing again in 2023/24.
The Budget measures, he said, had been timed to avoid making inflation worse.
Measures in the Budget included cost of living relief, cheaper childcare, an expansion of paid parental leave to 26 weeks, $3 billion allocated to aged care and $1.7 billion over six years to support women’s safety.
He also announced a Housing Accord which would bring together governments, investors and industry to boost supply and deliver up to 20,000 new affordable homes.
“The Accord sets an aspirational target of one million new, well-located homes to be delivered over 5 years from mid-2024 as capacity constraints are expected to ease.
“The Government will provide $350 million over five years, with ongoing availability payments over the longer term, to deliver an additional 10,000 affordable dwellings. States and territories will also support up to an additional 10,000 affordable homes, increasing the dwellings that can be delivered under the Accord to 20,000.”
Another housing measure was the extension of the exemption of home sale proceeds from pension asset testing by 12 months and expanding access to make downsizer contributions to super for people aged 55 to 59.
