Treasurer Jim Chalmers’ third budget should be viewed as both future leaning – with an eye to an election and one concerned with the social and economic wellbeing of Australian households impacted by ongoing cost of living pressures. However, it is a budget where spending on electoral ‘goodies’ has been necessarily curtailed by concerns around a softening Australian economy and ongoing global uncertainties. 

This year’s Federal Budget includes a range of important investments in Australian industry (Made in Australia), defence and education, the dividends from which will be realised in years to come. It also includes measures seeking to address some of the ‘here and now’ issues including the ongoing impacts of inflation on household budgets, safety and security of women and housing. 

The most notable of these measures include:  

• $925.2 million over five years to permanently establish the Leaving Violence Program 
• Superannuation payments on the government’s Paid Parental Leave scheme 
• Cost of living relief through changes to income tax thresholds and rates  
• Increase in Commonwealth Rent Assistance  
• A $300 energy supplement 
• Increased funding for Emergency Relief and Food Relief across Australia 
• $114.8 million over the next five years, to assist frontline services to support Australians in financial distress and make it easier for those struggling to pay their bills, to access assistance and support. 
• A commitment to fund a pay rise for aged care workers 
• 24,000 homecare packages 
• An investment package to support first nations people. 

There are however some notable omissions from the budget and in particular some of the key recommendations from its own Economic Inclusion Advisory Committee. Given that cost of living relief was a central platform to this year’s budget we are disappointed that more was not done to improve the financial security and wellbeing of those Australians living on the Jobseeker payment. 

The Budget seeks to balance the need to fund important social and economic programs against the Australian government’s evermore challenging fiscal position. While many will assess the Budget’s success or failure against economic or political indicators, the one universal measure which should be used to judge this Budget is whether it improves the wellbeing of people living in Australia, in particular the poor and vulnerable in our society. And on that measure; only time will tell.