Further energy bill relief is emerging as a probable centerpiece in Treasurer Jim Chalmers’s upcoming third federal budget, as the Labor government aims to assure Australians it will take additional measures to address escalating living costs. In a round of Sunday morning interviews ahead of the budget’s unveiling on Tuesday, Chalmers repeatedly committed to providing short-term cost of living assistance while simultaneously investing in the nation’s future.
Although the treasurer has refrained from officially confirming another round of energy bill relief, he made a concerted effort to highlight the positive impact of last year’s bill relief in curbing living costs and mitigating inflation. “The cost of living relief in this budget won’t be identical to what we’ve seen in the past, but it will be substantial. It will be in addition to the tax cut for every taxpayer,” Chalmers told Sky News.
The treasurer elaborated, “If you consider that electricity bill relief, in the year to March, electricity bills would have increased by nearly 15% if we hadn’t intervened. Instead, they only rose by 2%. I believe this demonstrates our commitment to alleviating these cost of living pressures wherever possible, positioning us as part of the solution to this inflation challenge rather than part of the problem.”
In the 2023 budget, 5 million households qualified for up to $500 in power bill assistance, while small businesses were eligible for up to $650. When asked to articulate the primary theme of the 2024 budget, Chalmers stated that it would be “good for mums and middle Australia, good for families, pensioners, students, and young people.”
The Coalition Opposition has outlined its expectations for the government, with Shadow Finance Minister Jane Hume insisting that Labor would have “failed in its duty” unless it successfully tames inflation. Shadow Treasurer Angus Taylor told the ABC, “What we have seen from Labor to date is two failed budgets. They haven’t delivered this cut in homegrown inflation that we have seen under Labor, and the result is if we have another flop in this budget, Australians are going to pay a very, very high price.”
The 2024 budget appears all but certain to post a surplus this financial year, which would mark the second consecutive surplus under Treasurer Chalmers’ stewardship. However, the Coalition accused Labor of posting a “windfall surplus” — attributable to higher than expected tax revenue and elevated commodity prices — rather than delivering a surplus based on structural budget reforms.
“What we have at the moment is a focus on windfall,” Mr Taylor said. He argued that Labor should instead prioritize ensuring that economic growth outpaces spending. “We’ve seen spending growing in real terms much faster than the economy over the last two years,” Taylor noted. “We have seen a government that loves to spend.”
In the lead-up to Tuesday’s budget announcement, Labor has already unveiled a series of significant funding commitments. These include wiping away HECS debt for certain graduates, setting limits on how that debt is indexed, and offering fee-free TAFE courses to help address critical shortages in the construction workforce.
On Sunday, the government confirmed that among the $8.5 billion earmarked for health and Medicare spending, the budget will allocate $227 million for the establishment of another 29 urgent care clinics across the country. This investment aims to alleviate pressure on hospital emergency departments and provide more accessible healthcare options for Australians.
Furthermore, the government has verified that billions of dollars will be dedicated to housing initiatives in the budget. $1 billion will be channeled through the National Housing Infrastructure Facility to support the development of crisis and transitional accommodation for women and children fleeing family violence, as well as for youth at risk of homelessness.
Prime Minister Anthony Albanese also reached an agreement with state and territory leaders at Friday’s national cabinet meeting to provide an additional $9.3 billion over five years. These funds will be directed towards homelessness support, crisis assistance, and the construction and repair of social housing. The collaborative approach between federal and state governments aims to address the nation’s housing affordability crisis in a comprehensive manner.
As Australians eagerly await the full details of the 2024 federal budget, it is evident that the Labor government is striving to strike a balance between providing immediate cost of living relief and investing in long-term economic stability and social infrastructure. The inclusion of substantial energy bill assistance, coupled with targeted investments in health, education, and housing, underscores the government’s commitment to supporting struggling households while laying the foundation for a more prosperous and equitable future.
However, the Opposition’s critique of Labor’s approach, particularly regarding inflation management and spending growth, sets the stage for robust parliamentary debate and public scrutiny in the coming days and weeks. As the nation grapples with the lingering economic challenges posed by the COVID-19 pandemic and global economic headwinds, the 2024 budget will serve as a crucial test of the Albanese government’s fiscal stewardship and its ability to deliver on its promises to the Australian people.
