Federal Budget 2024

In his third budget, Treasurer Jim Chalmers has delivered on his promise of cost-of-living relief, with tax cuts for every Australian.

Against a backdrop of global uncertainty and a world of “churn and change”, it’s clear the focus is on addressing the areas that matter most to individual taxpayers, particularly when it comes to their concerns about inflation. From energy costs to housing availability, tertiary education fees, and health care expenses, the Budget homes in on what Australians value most.

It’s a budget positioned as delivering responsible economic management – back-to-back surpluses and a lowering of gross debt. Yet, the question now is whether something responsible for today will set the country up for success tomorrow.

In a budget that’s picking winners by focusing benefits on certain sectors of the economy, the Government has signalled its priorities. What has not made the cut is funding for genuine tax reform to create a more efficient revenue collection system that doesn’t stifle economic activity.

If the Government is committed to positioning Australia for “lasting transformational change”, should a tax system that operates in the best interests of all Australians, with a reduction in red tape, not be part of the change?

The backdrop for this year’s budget

Amid global inflationary pressures, the Australian economy has experienced a period of price instability and low growth. As inflation in most advanced economies remains above central bank targets, fiscal measures used to apply downward pressure on the price of goods have strained disposable incomes, as everyday Australians experience a cost-of-living crisis.

Read our assessment of the economic outlook.

Providing cost-of-living relief and supporting Australia’s green transition were clearly the Government’s key priorities in crafting this year’s budget, but what’s missing are real business tax breaks, industry-neutral support and genuine tax reform.

Mark MolesworthPartner, Tax

Key measures

Download our full analysis as a PDF report (2.57mb).

The backdrop for this year’s budget

Key measures

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