Federal Budget 2023: Winners and Losers- May 2023
Boasting cost-of-living relief, housing, healthcare and clean energy measures in the budget, Anthony Albanese’s second budget since being elected in May last year believes it will deliver a ‘stronger and fairer society’. Whilst broad sections of the society will be better off, the projected budget will be funded by cracking down on certain areas with reductions in spending.
Starting at the top of the list of winners, recipients of the Commonwealth Rent Assistance program will have the maximum rate of rent benefit increase by 15%, from $157.20/fortnight to $180.80. Small businesses are looking to weather dampened consumer sentiment with a temporary increase in the instant asset write-off threshold to $20,000, along with deductions in capital expenditure on energy efficient assets. A$3bn will be spent on direct bill relief, co-funded with state governments to assist 5m households to have a $500 deduction in power bills.
Tobacco excise tax to increase by 5% a year for the next 3 years, expected to raise tax revenue by A$3.3bn. The Australian Government is continuing their crackdown on businesses avoiding GST, with expected compliance activities to cost under $600m and boost tax revenues by A$10bn over the same period. A$58m to establish a national anti-scam centre and an additional A$17m to be spent over 4 years to identity and take down phishing websites and investment scams.
The Federal Budget has also pledged over A$1.9bn over the next 5 years to expand defence engagement with Pacific Nations, strengthening law enforcement. Over the next 4 years, the Government will invest more than A$19bn to implement priorities outlined in a defence strategic review with defence spending as a proportion of GDP to rise 0.2% by 2032-33.