This is a pre-election budget for the people with everyone getting a little something to ease cost of living pressures. Like the Price is Right gameshow, it will all come down to the price paid at the checkout. If the consumer price index (CPI) returns to target by the end of 2024 off the back of the Budget initiatives as the Government anticipates, the Reserve Bank of Australia (RBA) may be inclined to reduce interest rates. However, at this stage, the RBA is not expecting inflation to return to the target range of 2-3% until the second half of 2025, and to the midpoint in 2026.

Of particular note:

• Previously announced Stage 3 tax cuts
• $20k small business instant asset write-off extended for another 12 months
• The Fair Entitlements will look to pursue unpaid superannuation from businesses in liquidation or bankruptcy
• $300 energy bill relief for all Australian households and $325 for eligible small businesses – applied as an automatic quarterly credit.
• Student HELP debts will be cut by changing the way indexation is calculated. From 1 June 2023, it will be the lower of the CPI or the Wage Price Index (WPI), reducing the debt accumulated by more than 3 million Australians when the CPI spiked to 7.1%.

We’ll keep you up to date on the latest changes via our emails and social media pages.

Grab a cuppa, settle in and download the budget below.