Every year, on a cool night in Autumn, the Australian Government releases their budget papers. The papers outline how the government plans to spend the country’s money over the coming years. It is a cornerstone of government policy and often a test to establish how well they are caretaking the economy. This year, its poignancy is not lost due to high inflation and cost of living crises. Many see this as an indication of the Labor Party’s ability to provide appropriate support and spending to Australian families without causing inflation to rise further. It is also important to note that the policies discussed in the budget will not come into effect until they are passed by the Australian parliament.

Key Points from the Budget

This year, the overall message of the budget was to limit spending to stop inflation rising while still spending enough money to support struggling Aussie families. It is a balance that Treasurer Jim Chalmers feels confident they have been able to strike. Chalmers announced that the government had achieved a surplus for the second year in a row. ‘Surplus’ is often a buzzword during budget time and means that the government is spending less than it has in income. The importance of Labor achieving a surplus for the second year running is that the party is often considered a ‘big spender’, and believes that having a surplus demonstrates its ability to balance the books of the Australian economy. However, it is also important to note that this surplus does not eradicate Australia's debts. Australia’s overall debt sits at $904 billion, down from almost a trillion from the last government, and although there is a surplus this year, deficits are expected for the next two years. Deficits mean the government is spending more than it is earning, putting the country into further debt. The Treasurer says these deficits are caused by the government’s policy on cost of living relief and funding it deems ‘necessary’. While this may all feel like economic jargon, it paints a picture of the economy feeling the strain, like many Australian families.

Measures for Young People

For many young people, the budget can appear daunting and not really applicable to their lives. However, this year, many changes will directly impact the lives and experiences of Australia’s young people. These include education reform, healthcare, women’s issues, housing and cost-of-living initiatives, and climate action.

Education Measures

In relation to education, the government has employed a wide array of new measures. The one making the most headlines has been the reform of HECS indexation. Eligible students who attend university can have the government pay for their degree, only beginning to pay their debt back once they are earning $51,550 or more. However, the debt is indexed every June to ensure it is in line with inflation. Problems occurred last year when the HECS was indexed by 7.1% to match the Consumer Price Index, a measure of inflation. In this year’s budget, the government recognised the unnecessary pressure placed on students and changed the system so that HECS would be indexed by either the Consumer Price Index or the Wage Price Index, whichever is lower. This means that last year’s rise will be limited to match the Wage Price Index of 3.2%, wiping on average, $1,000 from each student’s debt. However, this money will only be wiped from the indexation and not actually from students’ fees. Furthermore, the government has announced that it will pay students on placement in teaching, nursing, midwifery, and social work. The government has proposed that students studying in these areas will receive $319.50 a week while on placement. This will be on top of any other support or income they earn. This measure was introduced to relieve the financial stress that many students experience while they are on unpaid placements, which are compulsory for their studies. The government has also introduced a goal to have 80% of Australian workers have completed a tertiary qualification by 2050 and will implement a National Student Ombudsman to deal with complaints from the tertiary sector, particularly those relating to gender-based violence.

Health Measures

In the budget, the government has introduced many health measures including putting a further cap on the price of medications and planning to open more Urgent Care Clinics. It has committed to opening up 29 additional Urgent Care Centres nationwide, costing $227 million. This will bring the total up to 87. These clinics aim to reduce the pressure that is being placed on hospitals. With fewer and fewer GPs bulk billing their appointments, people find it hard to pay for them, so they often turn to hospitals. This has led to increased wait times in hospital emergency departments and further strain on an already struggling system and workforce. These centres are also bulk-billed and paid for by Medicare, so they make getting help more accessible.

Furthermore, the government announced that any medications listed on the PBS list would be capped at $31.60 for the next financial year, and that the current cap of $7.70 for pensioners and concession card holders will be extended until 31 June 2029. With cost of living pressures impacting many people, these new health measures allow people to continue to have government-funded access to crucial services. The government has also increased access to mental health prevention services, including free digital support services, walk-in mental health centres and counselling for workers in specific industries.

Women’s Issues

Recent weeks have shown that violence against women has not gone away, and instead, it has become evident how much government action is still needed. In this year's budget, the government has announced various new initiatives to help combat this. the ‘Leaving Violence Program’ is being made permanent and giving those eligible up to $5,000. This investment will total $925.2 million over five years to financially support those fleeing violence. This measure was announced before the budget in response to violence against women rising by almost 30%. Furthermore, to encourage more equality when taking Paid Parental Leave (PPL), the government announced that it will pay superannuation on government-paid PPL. Due to PPL, women often retire with significantly less super than their male partners, so this change means women are given a more equal footing. The government also announced they would spend $12.5 million on delivery of free period products to women in regional communities. Further money will be invested in miscarriage and reproductive health research and services. While the ‘Leaving Violence Program’ is the primary investment seen in the budget this year, many still criticise the government for not doing more, considering the spotlight that has been placed on violence against women and other issues that impact women this year.

Cost of Living Measures

The government also announced some cost of living and housing crisis initiatives to limit the strain on Australians, most notably young people. The Commonwealth Rent Assistance (CRA) payment will increase by 10% from last year. The government also has committed to expanding the availability of student accommodation. Further, the ‘Help-to-Buy’ scheme was introduced earlier this year, will contribute up to 40% of the cost of a new home and 30% for pre-existing homes for eligible first-home buyers. The most notable announcement was that every household will receive a $300 rebate on their electricity bill to combat rising utility prices and overall cost of living pressures. These initiatives aim to support people through cost of living pressures without injecting too much money into the economy, which could cause a rise in inflation.

Climate Policy

Notably, there were no explicit changes to the government’s climate policy. However, it is believed that investments in the ‘Made in Australia’ policy will help the country transition to renewable resources. However, with many young Australians concerned about the climate crisis, there are questions about whether this is enough.

Final Thoughts

While there is still much more to unpack in this year’s budget, these are the areas that I feel are most relevant to young people. The government is in a precarious position as it must limit funding to drive down inflation. However, it must also consider the pressures many Australians face and introduce measures to help combat them. It will be important to watch how these initiatives will go passing through parliament before they can officially begin. And with that, this ends budget coverage for another 365 days before this Labor government’s final budget is announced next year.

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The 2024 Budget: What’s in it for Australia’s Young People?