Key Points
- Anthony Albanese has defended the budget spending, saying it's "responsible" but still "looks after people".
- The Opposition argued it would add to interest rate pressures on already stressed middle-income households.
- A $4.2 billion budget surplus is expected for the current financial year, with deficits for the next three years.
Prime Minister Anthony Albanese says his younger self growing up in public housing would be "very proud" of the budget, despite outcry from poverty advocates claiming they have been left behind.
Mr Albanese has also pushed back against Coalition claims that Labor's unveiled on Tuesday night, will fuel the inflation crisis.
The budget confirmed expanded support for single parents and Medicare , but only modest boosts for low-income renters and JobSeeker recipients.
Despite advocates warning the changes , Mr Albanese, who has regularly cited his childhood growing up with a single mother, insisted Labor had balanced the immediate needs of people suffering with long-term fiscal responsibility.
"The young boy from Marrickville would have said that this is a budget that looks after people, that makes a positive difference," he told SBS News.
"We're doing all of this in a way that provides for a responsible budget, taking pressure off families whilst we're not adding to pressure on inflation."
But after also being attacked by the Coalition, which claims the expenditure will add to inflation, Mr Albanese warned his critics: "You can't have it both ways".
"We think we've got the balance right," he said.
After the budget papers revealed the cost of the stage three tax cuts for Australia's wealthiest was set to balloon, Mr Albanese reiterated Labor had no plans to scrap them.
"We gave no consideration to that, and our position hasn't changed," he said.
The government also plans to , Austudy and Youth Allowance.
While the budget has forecast a $4.2 billion surplus for the current financial year, deficits are set to follow in the next three years, albeit smaller than previously anticipated.
The improved budget outcomes come after the government banked more than 80 per cent of revenue gains driven by high commodities prices and a strong labour market.
Peter Dutton says budget will push rates higher
Opposition leader Peter Dutton said the budget would add to interest rate pressures on already stressed middle-income households.
"Under this budget, at the very least, we know that interest rates will be higher and for longer, which is going to be a double whammy for Australian families," he told Sky News on Wednesday.
"For families, they are struggling at the moment, big time, and there's nothing at all for them in this budget."
Alongside the cost of living package is a $3.5 billion investment in Medicare incentives to lift bulk-billing rates for concession card holders and children under 16 years.
There will be worth $3 billion with five million households set to receive up to $500 in assistance, while one million businesses will receive up to $650.
The energy relief means price increases for electricity will be 25 percentage points lower than expected, while gas prices rises will be 16 percentage points lower.
Treasurer Jim Chalmers said the power price relief would be targeted and the amount received would depend on which state or territory someone lived in.
"We'll make sure this relief is provided on the bill, rather than spraying around cash cheques to people," he said.
"These electricity prices are much lower than they would otherwise be because of the combination of the energy plan that we put in place: the gas and coal caps, and the energy bill relief."
Shadow treasurer Angus Taylor said households would still pay more for energy, claiming Tuesday had cemented Labor's failure to cut electricity prices by $275.
"It is clear in the budget now, that's a broken promise," he said.
"What we want to see from the government is taking pressure off inflation. This is not a budget that does it."
Energy Consumers Association chief executive Lynne Gallagher said the energy relief measures would provide welcome relief.
"The federal budget combines much needed immediate direct assistance with investments that help consumers get control of their energy costs," she said.
