The Australian government has announced significant financial support for eco-friendly businesses, including $19.7 billion for the Future Made in Australia program, $1.5 billion for the Australian Renewable Energy Agency, $8 billion for green hydrogen, and $7 billion for essential minerals. The program aims to transform Australia into a renewable energy powerhouse, with $1.2 billion allocated for key minerals projects.
The government also provides relief from energy bills to households, tenants, and the housing industry, with $4.3 billion allocated for social housing providers, developers, and tradespeople. Additionally, the government freezes the price of medications for pensioners, abolition of optional co-payments on PBS medication sales, and $3 billion for university students.
The Australian government’s war on consultants has led to a 25% growth in the federal bureaucracy since the coronavirus outbreak and a 10% growth in just one year. The replacement of consultants will result in at least 2500 additional jobs, with the Defence Department testing an internal consulting section.
Australia’s ambitions to build AUKUS submarines require a skilled workforce valued at over $100 million. The government has allocated $206 million to Australia’s Pacific neighbors, including real estate and telecommunications infrastructure. The new National Interest Account will be fuelled with $2 billion to increase Australian investment in the region.
The budget aims to reduce spending on consultancies, labour hire, and contractors, cash up foreigners, and reduce spending on disability insurance. It also includes a freeze on deeming rate increases for single-age pensioners, a planned pay rise for aged care workers, and relief for students.
The budget also includes funding for free courses and fee-free TAFE and VET places for tradie trainees. The budget also includes an extra $24 billion for the Reserve Bank of Australia and $2.7 billion for tax cheats.
All in all it’s not a bad effort. I’m not one to worry about whether energy and rent subsidies will boost inflation much, if it all. Consumption is rooted. The stage three tax cuts have a larger impact but are already factored in at the RBA.
The economic assumptions are not terrible, with a conservative $70 iron ore price.
The problem is that the budget does not include structural measures to fix the government’s two biggest mistakes.
It blew the chance to reign the gas cartel during the Ukraine War, and is now forking out $3,5bn in subsidies to bills that pass through to the energy cartels to avoid the fallout hitting Australians. Why not just fix the damn cartel instead?
It overcooked immigrants and created a generational housing crisis for which it has no solution. Nothing in the budget improves the sagging trajectory of the joke 1.3m homes built over the next four years. There’s just increased rent subsidies. Why not just slash immigration instead?
Basically, Treasurer Jim “Chicken” Chalmers has discovered the joy of covering up his multibillion-dollar blundering with your money.
