The government's rebadged $1.5billion package, delivered as part of a deal with the states, will credit up to $500 into the electricity accounts of more than five million Australians. 'While higher spending appears unavoidable, importantly, that can't be via a blank cheque.'Īlthough the national economic outlook is uncertain, Mr Smith noted 'it's still brighter than what Treasury had assumed in the 2022-23 October Budget'.īut for many the budget will have little impact on their lives, including energy bill relief. 'Do too little, and low-income households, and the economy more generally, will be left teetering,' he said. Mr Smith forecast some measures to offset the cost of living, but noted too many handouts would risk worsening inflation and seeing more rate rises, which would cripple the economy.
Australia's stubbornly high inflation rate means despite the pain, Australians expecting a massive 'cash splash' in the Budget will be sorely disappointed, Deloitte economist Stephen Smith said. Last Tuesday, the RBA shocked most financial analysts by lifting the cash rate to 3.85 per cent, adding hundreds of dollars to the cost of the average mortgage. The 1.2 million Australians suffering mortgage stress are also wondering when their relief is coming - and many of them will be affected by the axing of the previous Coalition government's low and middle income tax offset which was worth up to $1,500 per person.ĭr Chalmers' second budget in less than a year delivered a much needed increase to Jobseeker payment, a small rise to rent assistance and handed down a surplus for the first time in 15 years.Īustralians were warned not to expect vast government spending to help them as they struggle with decades-high inflation and interest rates which have risen 11 times in just over a year. Many people who don't have a child, aren't on a welfare payment and are over the age of 16 will miss out on the so-called 'centrepieces' of Labor's budget, which has been criticised by a peak accountancy body. Treasurer Jim Chalmers admitted as much when he told a group of reporters in the lockup there was 'not room in the budget to help every single Australian'.
Labor's big-spending budget handed out cost of living relief to the vulnerable and huge tax cuts to the wealthy - but major sectors of middle Australia have been left out, with the budget making very little difference to their lives.
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