Last Tuesday, Treasurer Jim Chalmers delivered the 2023/24 Federal Budget. Social, Talkback and Print have all cast their opinions in the days since. In 280 words, what do we think?
For a government hell bent on tinkering. Tick.
A budget surplus
Income greater than expenditure. Albeit the income has grown largely on the back of commodity price rises. But the first surplus we have had in 15 years. Tick.
Cost of living
A range of payments for low-middle income families including pensioners, Commonwealth Seniors Health Card, Carers, Family Tax recipients and Veterans across energy bill savings, medicines, JobSeeker and rent assistance. Sensible and welcome.
From 1 July 2025, balances above $3 million will be taxed at an additional 15%. Harsha and just another tinker to the retirement structure. Employers to pay their employee’s wages at the same time as their wage commencing 1 July 2026. Sufficient time for business to comply.
No changes to the Stage 3 tax cuts which will take effect from 1 July 2024. No surprise. To see 2023 tax brackets, follow the link. To use a tax calculator during the year to check on your tax, follow the link.
Debt to GDP is expected to average less than 24% of GDP, down from 26% forecast last October. Tick. The health and wealth of the economy has the most impact on our long-term wealth creation. From the companies and small businesses we work for, to the products and services we ultimately invest in. The policies announced in this year’s budget are sensible and, on analysis, should not have an adverse impact on the opportunity for the economy to grow, healthily, over a sustained period.
How will this impact? It hasn’t. And it isn’t expected to. This is a vanilla budget with minimal impact.