Treasurer Jim Chalmers hints at what’s in store for Aussies in May Federal budget
Treasurer Jim Chalmers hints at what’s in store for Aussies in next month’s federal budget, with wage increases for some, targeted support for struggling households and no new tax cuts
- Dr. Jim Chalmers will share the budget next month
- The treasurer already explains some measures
- The budget also includes support for aged care workers
Jim Chalmers has pledged to fund wage increases for aged care workers and hinted at support for Australians struggling with the cost of living in his next federal budget.
Speaking in Washington DC, the treasurer also confirmed that there will be no new tax cuts in next month’s budget.
Looking ahead to his announcement next month, Dr. Chalmers touched on several topics, including a pledge to help states address labor shortages and rising construction costs.
And he also insisted that the government give ‘meaningful support’ to Aussies struggling with the current cost-of-living climate.
These steps include a 15 percent wage increase for elder care workers, which will cost nearly $8 billion over four years.
Looking ahead to the budget he will be submitting next month, Dr Jim Chalmers discussed several issues it will address
Meanwhile, a cost-of-living package will target energy bill relief.
Dr. Chalmers also wouldn’t rule out lifting JobSeeker’s unemployment benefit from $693 every two weeks.
“We understand that people are under the pump… We will provide meaningful support where we can,” he said during a speech in Washington.
“We are committed to managing the economy in the most responsible way, and that requires cutbacks in some areas in order to make significant investments.”
Dr. Chalmers also revealed that he would not go beyond the tax changes he has already announced on pension concessions and multinational rates.
“This is an important input to our thinking on the budget, but we’ve also been realistic and candid in saying that there are more good ideas being delivered to us than there is the capacity to fund them all,” he said, according to the Announce sun.
The treasurer also shared concerns about the state of the housing market and rent increases and criticized the coalition and the Greens for blocking Labour’s $10 billion affordable housing fund.
Measures include a 15 percent wage increase for aged care workers, which will cost nearly $8 billion over four years
However, he declined to shed any light on the future of Labour’s ‘Help to Buy’ programme, the shared equity concept to help potential homebuyers get to the market faster, and a key election promise.
Discussing migration, Dr Chalmers also said Australia had “still not filled the gap created by Covid”.
His comments come days after the International Monetary Foundation revealed that Australia was likely to avoid a recession.
Dr. Chalmers previously said that neither the Treasury nor the Reserve Bank expected Australia to slip into recession, but the economy was expected to slow.
“We are better placed than most countries because of lower unemployment, because of the prices we get for our exports and some of the other benefits we have,” he said.
The IMF forecast Australia’s GDP growth to stagnate to 1.6 percent this year, followed by a 1.7 percent increase in 2024.
Forecasts were slightly ahead of the US and Canada, while the UK economy was expected to contract.
Dr. Chalmers said each country had its own combination of economic challenges.
“But as the IMF points out, we will not be immune to a global slowdown in growth,” he said.