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 Nicholls Sam Birrell said it felt like a budget designed to please as many people as possible, and said it was a “big-spending, big-taxing” budget.
He lamented the small amount of dedicated funding for regional communities, and expressed concern over regional infrastructure spending — as well as just $250 million for regional roads.
Mr Birrell also said an increase in truck taxes by six per cent a year for three years would add 5.2 cents a litre to fuel costs, and farmers would be slugged with additional taxes for additional biosecurity controls on foreign imports.
Regional Cities Victoria, an organisation representing local councils, including Shepparton, 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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