#  Federal Budget Summary 2022-23

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  ![telescope on ship ](https://www.finallysorted.com.au/images/blog/federal-budget-summary-2018-19-sapience-financial.jpg) Federal Budget highlights - winners and losers Reading Time: 3 minutes

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### Quick Federal Budget Summary for 2022-2023

### The 2022-23 Federal Budget has a number of highlights relevant to many of our clients, friends, and supporters explored further below.

Overall, a reasonable budget in terms of what was required, but an uninspiring one with the forward period in mind.

### Key forecasts

- *Budget deficits* will continue through to 2032-33, but the government doesn’t expect them to exceed more than 2% of GDP from 2024-25.
- *RBA cash rate* to peak at 3.35% in 1st half of 2023 (currently at 2.60%)
- *Annual interest payments on government debt* expected to hit $70.5 billion in the next decade, about $30.5 billion higher than forecast just 7 months ago
- *Deficit* to remain about $50 billion over the next decade, roughly 2% of GDP, with big cuts needed to bring the deficit in
- *Gross debt* to continue rising out to 2025-26 to $1.16 trillion or 43% of GDP, whilst net debt rises to $767 billion or 29% of GDP

### **Key statements**

- **Inflation** to average 5.75% this financial year and 3.5% next year, before dropping back to 2.5% in 2024-25
- **Unemployment** to rise to 4.5% over the next 2 years
- **National Disability Insurance Scheme** (NDIS) could hit $102 billion by June 2023 which would see it eclipse the age pension
- **Electricity** costs to rise by 20% this year and another 30% next year, whilst gas costs are to rise 20% this year and another 20% next year
- **Wages** to grow at the fastest pace in more than decade at 4%, but workers to still be worse off with inflation running hotter wages growth

### Winners

- **Families** – progress on $4.7 billion plan to reduce the cost of childcare for families from July 2023
- **Patients** - $2.9 billion package to strengthen primary care
- **Aged care residents** - $2.5 billion to mandate a minimum number of care minutes for nursing home residents and employing a registered nurse onsite 24/7 in homes.
- **Internet** - $2.4 billion to be spent on NBN to expand full fibre access to 1.5 million homes and businesses by 2025
- **Foreign Aid** - $2 billion boost in aid and grants for the Pacific and SE Asia.
- **Students** - $852 million to provide 480,000 fee-free TAFE places
- **Medicine users** – Max co-payment on prescription drugs drops to $30 a script from January at a cost of $787 million
- **New parents** – $530 million for paid parental leave payments up to 26 weeks by 2026
- **Self-funded retirees** – income thresholds increased to $90,000 for singles and $144,000 for couples so more people qualify for the senior’s health card.
- **Skilled migrants** – permanent migration program expanded to 195,000 places a year

### Losers

- **Business Incentives** - Scrapping previous grants – including infrastructure, business incentives, community programs, road and commuter car parks, etc, saving $13.7 billion
- **Energy users** – electricity costs to rise by 20% this year and another 30% next year, whilst gas costs are to rise 20% this year and another 20% next year
- **Consumers** – weather related events on east coast to add to food inflation over the next few quarters

More details can be found at the Governments official Budget website [here](https://budget.gov.au/index.htm).