Labor has delivered the second federal budget of the year, announcing a plan for cost of living, wages and housing.
Look back on all the analysis and reaction in our blog.
Key events
- What's in the federal budget for First Nations communities?
- What's in the budget for businesses?
- What’s on offer for Australia's aged care sector?
- What is the budget saying about the environment?
- Analysis: Inflation will get worse before it gets better
- Who are the winners and losers in this federal budget?
- Analysis: Labor's first budget is a tale of two stories
- Labor to invest $1 billion in fee free TAFE
- Chalmers announces Housing Accord
- Jim Chalmers unveils five-point plan for cost of living relief
- Greens leader says Labor's position on stage three tax cuts is 'untenable'
- Budget includes a plan to build one million homes by end of the decade
- PM says the budget will deliver 'improvements in the bottom line'
- Opposition says Labor needs to explain how it will keep spending promises
- Treasurer says budget will be 'solid, sensible and suited for the times'
Live updates
By Jessica Riga
Let's recap the big moments of budget night
We're winding down the live budget coverage for this evening, so let's recap the major components:
- Australians are facing a bleak couple of years, with Treasury forecasting dual woes of sustained high living costs and declining real wages
- The budget bottom line has improved but Treasurer Jim Chalmers is warning of tough decisions in coming months
Here are your key reads if you want to catch up on any of today's news:
- Federal budget paints a bleak picture for Australians contending with soaring living costs
- Federal budget 2022 Winners and Losers
-
An 'aspirational' target of 1 million affordable rentals has been revealed in the budget. So what does it mean?
- What does the federal budget deliver for business? Child care, skills and tax the centrepieces
- Analysis with Laura Tingle: A car crash is coming — and Australia is not equipped to handle it
Remember, you can catch up on our comprehensive coverage of the Albanese government's first federal budget with analysis from the ABC's political and business teams including Sarah Ferguson, Laura Tingle, David Speers, Jeremy Fernandez and Kathryn Robinson here on ABC iview.
Thanks for joining us this evening and writing in. We'll be back blogging again bright and early tomorrow to bring you the latest reactions. See you then!
By Jessica Riga
Energy bills to soar, but there's no federal budget relief for businesses
Treasurer Jim Chalmers has forecast a further surge in electricity and gas prices, but his first budget has ignored calls from industry groups to provide support for struggling businesses.
By Jessica Riga
David Speers breaks down budget bottom line
David Speers breaks down where the budget stands, and where its biggest challenges lie.
By Jessica Riga
Analysis: 'This budget sets a clear line in the sand'
Here's some more analysis from independent economist Nicki Hutley.
"It may take a little time for Aussies to fully appreciate that the sugar hits of more recent budgets are a thing of the past, but this budget sets a clear line in the sand.
"We can't have Scandi-style social services based on a Cayman Islands tax system. Something's gotta give.
"But there is no doubt the conversation is going to be a tough one – and I doubt we'll have the problem solved before next May's budget."
By Jessica Riga
Budget is honest assessment of Australia's finances, says Katy Gallagher
Finance Minister Katy Gallagher says the federal budget is the start of a conversation about how we pay for the things that Australians value the most, as well of managing the economic challenges ahead.
You can watch her interview with the ABC's The Business below.
By Jessica Riga
Analysis: 'This year is going to be make or break for our nation'
Here's some analysis from former Treasury official Stephen Anthony, managing director of Macroeconomics Advisory.
"I think this next year is going to be make-or-break for our nation, with more problems stacked up than we've had since World War II," he told the ABC.
"The Treasurer wants to have an adult conversation about tax and spending given the October budget's big, permanent structural deficit.
"Given this desire, has the Treasurer missed a chance to act now to fix the budget mess? This effort is not making the job of the RBA and mortgage holders any easier today, nor is it fixing the longer-term structural deficit for tomorrow.
"It was fiscal policy that caused today's inflation and it must play an active role in curtailing it.
"The Treasurer shouldn't assume he has time to play with to fix the budget."
By Jessica Riga
Environmental advocates say the budget hasn’t gone far enough on climate change
By the ABC's national science, technology and environment reporter Michael Slezak
The Albanese government has made climate change a central concern and it has hit the ground running with big plans including tens of billions of dollars to expand renewables and billions more for decarbonisation and resilience projects.
But some on the crossbench, as well as those outside parliament, noted that the politically harder fight – that is reigning in Australia's massive fossil fuel industry -- is one this budget didn't touch.
"We're still subsidising fossil fuels more than we're spending on public schools," independent Senator David Pocock said after the budget was handed down.
The Australian Conservation Foundation chief execute Kelly O'Shanassy put it bluntly: "The budget [has] continued most of the Coalition's support for fossil fuel industries, including the Fuel Tax Credits scheme, which subsidises the diesel use of multinational mining companies and will cost taxpayers $39.4 billion over the forward estimates."
She noted the new government also continues to support subsidies for the fossil fuel industry to open up new gas basins around the country -- something the International Energy Agency and the IPCC has found is inconsistent with stopping global warming at 1.5 degrees.
It's hard to not see those continued subsidies as undermining some of the ambitious action the government is taking on climate change.
By Jessica Riga
What's in the federal budget for First Nations communities?
The ABC's Indigenous Affairs reporters Carly Williams and Kirstie Wellauer had a look.
There's been months of conjecture around the referendum on a Voice to Parliament and how it'll be funded. But tonight's budget confirmed the Albanese Government will spend $75 million to get the referendum off the ground.
A big chunk of that will go to the Australian Electoral Commission (AEC), National Indigenous Australians Agency, the Department of Finance and the Attorney-General's Department.
The AEC will receive an extra $16.1 million to ramp up enrolment rates for First Nations people before Australia votes within the next two years.
The biggest chunk of budget-money dedicated to Indigenous people will be a $314.8 million injection to First Nations health over five years. The government will spend more than half of the amount on modern health clinics in regions with high First Nations populations.
Labor has come through on its election promise to dedicate $22.5 million over three years to build an Indigenous-owned Birthing on Country Centre of Excellence in Nowra, NSW which will be run by the Waminda Women's Corporation.
A record $99 million will be spent on community-led justice reinvestment initiatives to tackle the disproportionate number of incarcerated First Nations peoples and the Aboriginal and Torres Strait Islander Legal Services will receive an extra $13.5 million.
"Turning the tide on the unacceptably high rate of incarceration and deaths in custody is a key priority of this package," Minister for Indigenous Australian Linda Burney said.
The government said it would "explore options" for a national real-time reporting of First Nations deaths in custody, but money to fund this will be met from within existing resourcing.
By Jessica Riga
What's in the budget for businesses?
ABC business reporter David Chau breaks it down for us in the video below.
By Jessica Riga
What’s on offer for Australia's aged care sector?
The ABC's social affairs correspondent Norman Hermant has taken a look.
Here's what he says:
The chief executive Australia's peak aged care body, Aged & Community Care Providers Association (ACCPA), has welcomed spending announced in tonight's budget.
But, he says, the aged care sector is "still under huge financial pressure".
Treasurer Jim Chalmers announced $2.5 billion to fund the government's election commitments, including a requirement for registered nurses be on site at all nursing homes 24 hours a day.
The Treasurer also committed to care minutes per resident increased to 215 minutes per day.
Both were key recommendations of the Aged Care Royal Commission.
The budget also provided $1.4 billion for other measures including continued funding for COVID-19, implementation of an Aged Care Complaints Commissioner and Inspector-General of Aged Care, as well as investments to help prepare the ground for major reforms to home care.
But significant expenditures have not yet been accounted for.
For example, ACCPA chief executive Tom Symondson it expected the government to fund the outcome of case being considered by the Fair Work Commission, which could see the award for aged care workers increased by 25 per cent.
"We don't know what that's going to cost yet," Mr Symondson said.
He said the newly-created Independent Hospital and Aged Care Pricing Authority was currently determining the true cost of deliver aged care.
Its estimate won't be known until next year.
"The big game in town is actually next year's budget," he said.
By Jessica Riga
Casey Briggs takes a look at the cost of living pressures facing Australians
By Jessica Riga
What is the budget saying about the environment?
The ABC's national science, technology and environment reporter Michael Slezak has a had a look. Here's what he says:
Labor has talked a big game when it comes to saving native species.
Despite Australia losing more mammals to extinction than any other country on Earth, it ambitiously said it doesn't want to see any further animal or plant extinctions.
And they've started putting some money behind that - but not nearly enough to make the ambition a reality just yet.
There's a new $224.5 million program called Saving Native Species, promised before the election and now funded, which will no doubt make a difference.
There's also nearly $30 million being put into the long-overdue reform of our federal environment laws, $90 million to train new Indigenous rangers and $66.5 million for Indigenous protected areas, among other things.
But none of this will get even close to what the government says it wants to do.
According to peer-reviewed research led by ecologist Professor Brendan Wintle, to halt the extinction crisis, the government will need to spend $1.69 billion every year -- that's more than 30 times its Saving Native Species program.
Environment Minister Tanya Plibersek said the budget was a "down payment on strong action".
"This Budget sets the environment up for a better future," she said.
According to Freya Cole from the Australian Conservation Foundation the budget has "started to turn around a decade of savage cuts to the environment." But she said there is "a long way to go if the Albanese government is serious about its plans to tackle the climate and extinction crisis".
By Jessica Riga
Shadow Treasurer Angus Taylor attacks the budget, says Labor is failing keep election commitments
Angus Taylor hit out at budget forecasts that electricity prices will increase by about 50 per cent in coming years.
He says it is a broken election commitment, as Labor promised they would go down prior to the election.
"What we want to see is Labor keep their election commitments," he told 7.30.
"They committed not only a reduction of $275 in electricity prices — they committed also to relieve cost-of-living pressures on Australians.
"They committed to improvement in real wages. And yet we look at this budget and it's delivering none of that.
"Now, there are many different ways you can try to deliver those things, I think there's some ways better than others, but it doesn't matter.
"They were election commitments. And they're not being kept in this document."
By Jessica Riga
Tell me more about Labor's Schools Upgrade Fund
Is the government committing funding to improve air quality in public buildings, businesses, and schools to support 'living with Covid'? How much has been set aside for future Covid vaccine purchases? eg. Keen to hear the details of Labor's long-promised Schools Upgrade Fund.
- HappyTaxPayer
Hi Happy Tax Payer, thanks for writing in.
According to the Budget, the government will provide $270.8 million over two years (2022-23) to implement the Schools Upgrade Fund "to provide grants to support capital works projects for updates to school equipment and to improve ventilation in classrooms to keep students and school staff safe following disruptions cause by COVID-19."
"In 2022, grants rounds will be open to all schools to apply for funding to undertake small-scale projects to improve ventilation and school facilities. Targeted grants will also be delivered as part of this round to schools identified with priority needs.
"In 2023, under a second grant round, government schools will receive the same amount of funding as non-government schools will be allocated in consultation with state and territory governments."
By Nicholas McElroy
Shadow Treasurer Angus Taylor raises concerns that cost-of-living pressures weren't addressed
By Tom Williams
For business, the budget focusses on addressing skills shortages, child care and tax
Here's business reporter, Michael Janda:
The biggest measures for business in this budget are directed to workers, or prospective workers, not to businesses themselves.
Extra funding for child care and TAFE are intended to increase the number of people who can enter the workforce, and to upskill them.
The increase in permanent migrant intake is the quicker fix to the same issue of skills and worker shortages.
The downside for big business, especially multinationals, is that the government is looking to get more dollars out of them by reducing tax avoidance and minimisation.
You can keep reading about the business announcements here:
By Tom Williams
Analysis: Inflation will get worse before it gets better
By reporter Casey Briggs
What a difference seven months makes.
This budget paints a much thornier image of inflation than the one that was handed down in March.
The March budget predicted inflation would have peaked by now, at about 4.25 per cent.
But in June, the ABS reported an annual inflation rate of 6.1 per cent and it's very likely that tomorrow's quarterly update will be higher — the highest the official series has been in more than 30 years.
Tonight's budget forecasts inflation will peak at 7.75 per cent in the next few months, before starting to fall again.
A big contribution to that high inflation is the price of electricity and gas.
Underpinning the forecast is an assumption by Treasury that retail electricity prices jump by 20 per cent by the end of the year on average, and by a further 30 per cent next financial year.
And sorry to all the renters in an already hot market, but the budget also says that "rental costs are expected to pick up considerably in the next 2 years".
Will these forecasts come to pass? The budget has a warning there too: "Domestic disruptions including the recent floods will test our resilience further."
When it comes to natural disasters, it seems our resilience is being tested pretty regularly these days.
By Tom Williams
Who are the winners and losers in this federal budget?
Here is a rapid-fire round of some of the changes that might impact you:
Families? They're a winner because there's $4.7 billion worth of spending in the budget over the next four years.
Wages? That's a loser. Rising inflation means real wages are expected to continue to go backwards until 2024 at least.
The environment? Winner. More money has been set aside for conservation and clean energy projects.
Law breakers? Loser. As with inflation, fines are set to increase.
You can read more details in our full winners and losers piece here:
By Jessica Riga
Analysis: Labor's first budget is a tale of two stories
By political correspondent Brett Worthington
Labor's first budget in almost a decade is a tale of two stories.
For Australians out there enduring the pains of soaring living costs, there's little news that will help ease that pain in the near future.
Real wages are tipped to go backwards until at least 2024, unemployment is forecast to increase and the electricity and gas forecasts are so gloomy Treasurer Jim Chalmers is even threatening market intervention.
For the budget bottom line though, it's a much brighter picture.
Low unemployment, soaring living costs and surging commodity prices have brought in billions in extra money into the budget bottom line.
This financial year's deficit forecast has halved and net debt is tipped to be about $100 million lower than originally forecast for 2026.
The treasurer insists the government is doing as much as it can to help people without further fuelling inflation.
But he's also got bigger headaches on the horizon.
He's facing a future where an ageing population is going to hit the government in two ways — fewer people paying income tax and greater welfare payments.
It's why he and Finance Minister Katy Gallagher are insisting this is just their first step in broader budget changes
