Winners and losers from the 2023 Federal Budget
By Tom Watson
The federal government has delivered its second Budget since coming into office last year, and as expected, cost of living support has featured prominently.
So what has Treasurer Jim Chalmers included in the 2023 Federal Budget when it comes to spending and cuts?
And which Australians are likely to benefit or miss out?
Winners
The bottom line: With a $4.2 billion surplus - the first since 2007-08 - the Budget has come in looking healthier than initially anticipated.
Energy bills: From July, federal, state and territory governments will co-fund $3 billion worth of bill relief which will see over five million households benefit from reductions of up to $500 on their electricity bills, and eligible small businesses up to $650.
Workers receiving quarterly super: Workers who are currently paid superannuation installments from their employers on a quarterly basis will instead receive them in line with their salary or wages from July 1, 2026 - a reform that is predicted to increase balances by thousands come retirement.
Single parents and carers: 57,000 single principal carers receiving the Parenting Payment (Single) are set to benefit from an extra $176.90 per fortnight as the result of a change which will increase the age limit of the youngest eligible child from eight to 14.
Aged care workers: The government will make good on a recommendation from the Fair Work Commission to increase award wages of over 250,000 workers in the aged care sector by 15%.
Defence personnel: The government is set to spend $400 million to support the retention of Australian Defence Force members via a bonus for personnel who sign on for another term of employment.
Medicine users: In a change which could allow users of hundreds of common medicines to access up to two months of medication at a time, the government anticipates that general patients could save up to $180 each year per medicine and concession card holders up to $43.80 each year per medicine.
Some renters: Around 1.1 million households receiving Commonwealth Rent Assistance will receive a 15% increase in their support payments, or up to $31 extra each fortnight.
Income support recipients: While the increase falls short of that hoped for by many recipients and advocacy groups, 1.1 million Australians receiving Austudy, JobSeeker and Youth Allowance will have their base rate lifted by $40 per fortnight. Additionally, 52,000 single JobSeeker recipients between 55 and 59 will see their base rate increased by $92.10 each fortnight.
Energy-efficient homes and businesses: The government will fund 110,000 low-interest loans for households looking to install batteries, solar systems and energy-efficient appliances, while also providing $310 million worth of tax relief for small businesses willing to do the same.
Losers
High super balances: Australians with higher superannuation balances will see the concessional tax rate applied to balances above $3 million double from 15% to 30% from July 2025.
Smokers and vapers: The government will ensure that smoking becomes more expensive by increasing the tax on tobacco by 5% per year for the next three years, starting in September. It will also look to strengthen regulations around e-cigarettes and vaping.
Scammers: With scam losses reaching $3.1 billion in 2022, the government will aim to crack down on scammers with $58 million in funding for a National Anti-Scam Centre, $17.6 million for the removal of investment scam and phishing websites and $10.9 million for a new Australian SMS Sender ID Registry.
First home buyers: While the government did expand the variety of home buyers eligible to access its Home Guarantee Scheme, the number of spots available for the next financial year remains the same and there was little else in the way of immediate support announced for first-time buyers.
Multinational companies: As part of an OECD-led crackdown on multinational tax avoidance, the government says it will take aim at large foreign companies from January 2025 by ensuring that they pay a tax rate of at least 15%.
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