Home » What’s in the budget? Here’s every announcement that you’ll hear about later today

What’s in the budget? Here’s every announcement that you’ll hear about later today

Treasurer Jim Chalmers will hand down his third budget on Tuesday night, but has been tempering expectations for weeks in the lead-up, warning Australians not to expect a “cash splash”.

Inflation remains a key challenge for the government, and we already have a pretty good idea of how Mr Chalmers plans to use his budget to provide cost-of-living relief while also trying to jump-start a slowing economy and navigate growing uncertainty overseas.

Here are the measures we already know about before the treasurer reveals all at 7:30pm AEST.

Short on time?

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There’s been no shortage of announcements in the lead-up to the budget. If you’re interested in a specific topic, tap on the links below to take you there:

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The bottom line

A graphic drawing of a persons hands typing on a laptop and writing out a budget.
Graphic of person budgeting.()

Will the budget be in surplus or deficit?

  • The budget will deliver a surplus of $9.3 billion for the 2023-24 financial year, making it the second consecutive budget surplus in almost two decades
  • That said, the following three financial years are all forecasted to have larger deficits than previously expected in December, but the size of each deficit is not yet known
  • Overall, the treasurer says Australia’s total debt has been reduced by $152 billion in the 2023-24 financial year, and the budget will benefit by a $25 billion boost in revenue upgrades

What does the budget mean for inflation and interest rates?

  • The treasurer has repeatedly said he’s kept inflation in mind when crafting this year’s budget, and is confident that the measures won’t contribute to it
  • In fact, Treasury predicts inflation will fall to 2.75 per cent by December — well before the Reserve Bank’s most recent forecast for the end of 2025 — due to yet-to-be-announced budget measures taking pressure off inflation
  • For what it’s worth, RBA governor Michele Bullock wasn’t too concerned about the upcoming budget last Tuesday, saying she would wait to see its impact first, but she said the treasurer reassured her that he was focused on curbing inflation  

Cost-of-living relief

The reworked stage 3 tax cuts form the centrepiece of the government’s budget. They were announced in January, legislated in February and come into effect on July 1.

The changes to tax cuts originally legislated by the Morrison government mean that all Australian taxpayers who earn more than $18,200 (that is, more than the tax-free threshold) will get a tax cut.

Before Labor’s changes, the original stage 3 tax cuts were skewed more heavily to higher-income earners.