Welfare payments were given a modest increase and together with bulk billing boosts and relief from soaring energy and rent prices form the cornerstone of the budget, which is the first to record a surplus in 15 years.
The boosts to bulk billing will provide free GP consults to more than 11 million eligible patients.
That surplus — to the tune of $4.2 billion — is not expected to last, with forward estimates projecting the budget to slide back into deficit over the next three years as prices for resources dip.
Treasurer Jim Chalmers said the extra money being pumped into the economy would not increase inflation because he had taken care to be prudent in his spending.
“In all our decisions, we seek to strike a considered, methodical balance between spending restraint to keep the pressure off inflation, while doing what we can to help people struggling to make ends meet,” Dr Chalmers said in his budget speech.
“This budget is carefully calibrated to alleviate inflationary pressures, not add to them.”
Federal Member for Indi Helen Haines criticised a lack of funding on housing and regional development, but applauded Labor’s moves on home electrification, agriculture and supporting GPs’ ability to bulk bill.
Dr Haines said the most pressing issue for people in the electorate was housing, and said the lack of investment was disappointing.
“The number one issue people talk to me about in Indi is housing. There’s so much more this government could do to kick-start housing development in regional Australia to ensure we all have a safe, affordable roof over our heads,” she said.
“The budget includes measures to help people get into home ownership, which I support, but in many towns in Indi there are just no houses to buy. These measures won’t be effective without first addressing supply issues.”
Regional Cities Victoria, an organisation representing local councils, applauded Dr Chalmers for tackling cost-of-living pressures but said it was disappointed regional Victoria had missed out.
RCV chairperson Andrea Metcalf said while the government’s $4 billion commitment to renewable energy, and $2 billion for hydrogen production, would complement the ongoing Growing Regions Program, Victoria had still missed out — including on funding for the 2026 Commonwealth Games.
“Investment in regional Victoria is critical for our local economies, especially as we prepare to welcome visitors from around the world to the Commonwealth Games in 2026,” Cr Metcalf said.
“We welcome the government’s funding for clean energy and cost-of-living relief; however, we would have liked to see regional Victoria secure more targeted funding for much-needed projects.”
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