Strengthening the Budget

Putting the Budget on a stronger foundation to make Australia more resilient and secure

A stronger Budget

Delivering on our Fiscal Strategy

Across two Budgets, the Government is:

  • returning 87 per cent of the improvements in tax receipts to the Budget
  • achieving $39.8 billion in savings and spending reprioritisations
  • limiting annual growth in real payments to 0.6 per cent on average. 

Australia is forecasting a budget surplus in 2022‑23 before most of the major advanced economies, and smaller deficits over each year of the Budget estimates compared to the October Budget.

Managing the Budget responsibly

Budget restraint and repair

This Budget continues to repair the Budget, rebuild our fiscal buffers, and redirect spending to higher‑quality areas.

Beginning to address structural pressures

The Budget faces persistent structural spending pressures from fast‑growing payments areas including in defence, health, aged care, the National Disability Insurance Scheme and interest payments on the debt this Government inherited.

By directing most of the revenue upgrades to budget repair, the Government is reducing debt and taking pressure off the debt interest costs, saving $83 billion in debt interest costs over the next 10 years.

Superannuation concessions will be fairer and more targeted with lower tax concessions available to individuals with balances exceeding $3 million. We are also ensuring multinationals pay their fair share of tax by implementing a global minimum tax and a domestic minimum tax.

The Government has also identified responsible, calibrated improvements to the NDIS in the medium term, including initiatives to improve the effectiveness and quality of the NDIS.

This contributes to the NDIS Financial Sustainability Framework to ensure the scheme is here to stay and can continue to provide life‑changing outcomes for future generations of Australians with disability.

The Government will work with the disability community and states and territories to implement the Framework so that every dollar goes to support those who need it most.

Responsibly dealing with a legacy of unfunded programs

The former Government left behind a legacy of unfunded programs and commitments. In the October Budget, the Government spent more than $4 billion to address underfunded programs and keep expiring measures afloat.

This Budget allocates an additional $7.5 billion to plug further holes left by our predecessors. This includes investing:

  • $804.3 million over 4 years to sustainably fund Australia’s biosecurity system
  • $754.7 million to secure Australia's digital health infrastructure.

Building a sustainable aged care system

A better future for older Australians and aged care workers

A pay rise for aged care workers

The Government supports continuing to improve wages and conditions for aged care workers, who are overwhelmingly women.

This Budget provides funding to support the Fair Work Commission’s decision to provide an interim increase of 15 per cent to modern award minimum wages for many aged care workers.

Providing more care and better care

To support older Australians who wish to remain at home for longer, the Government is investing $166.8 million to provide an additional 9,500 home care packages.

The Government is committed to delivering aged care services that meet the needs of Aboriginal and Torres Strait Islander Elders and enable them to remain connected to their communities.

This includes $52.1 million to increase the funding available to aged care providers in very remote areas and $1.7 million to appoint an interim First Nations Aged Care Commissioner.

The Government is providing $487 million to extend, and make ongoing, the Disability Support for Older Australian Program, which provides support to vulnerable older people with disability.

A higher standard of care

The Government is funding initiatives to improve the health and safety of older Australians receiving aged care and strengthen the regulation of the aged care sector. This Budget includes:

  • $81.9 million to develop and implement a new Aged Care Act to support sector reform
  • $139.9 million to enhance the Star Rating system
  • $12.9 million to improve food and nutrition in aged care.

Improving Disability Support

Improving disability systems and services for the future

Australia’s Disability Strategy 2021‑31 is a roadmap to an inclusive society to ensure people with disability can fulfil their potential, as equal members of the community.

To make progress in line with the Strategy, the Government is investing a further $31.4 million for the National Disability Data Asset and is providing $57 million to enable the supported employment sector to evolve.

Development of the National Autism Strategy will continue, with investment in early intervention pilots for infants showing signs of autism.

Getting the NDIS back on track

The NDIS is a vital scheme. The Government is ensuring the NDIS continues to provide life‑changing outcomes for people with disability.

Investing in the NDIA

The Government is investing a further $732.9 million in initiatives developed with the National Disability Insurance Agency in consultation with the NDIS Review Co‑Chairs. This will improve capability and systems, as well as better support participants to manage their plans and fight fraud.

Securing the future of the NDIS

The NDIS is here to stay. National Cabinet has committed to a NDIS Financial Sustainability Framework to ensure the NDIS can continue to provide life‑changing outcomes for future generations of Australians with disability.

Looking after our veterans

A solemn commitment to veterans and their families

The Australian community has a clear expectation that defence personnel, veterans and their families are well looked after. This is an important task and responsibility of government ‑ a solemn commitment.

Addressing the claims backlog and improving administration

The Government is working to address the claims backlog with $64.1 million in additional resourcing in 2023‑24.

Improving the administration of the claims system is also a priority, with a $254.1 million investment to modernise and sustain ICT systems.

Together, this will ensure claims processing is appropriately resourced now and systems are improved into the future. This responds to recommendations 2, 3 and 4 of the Interim Report of the Royal Commission into Defence and Veteran Suicide.

To meet future expected claims, the Government is providing an additional $4.8 billion in funding for veterans' compensation and support payments.

Funding of $0.5 million is also being provided to expand the Defence, Veterans’ and Families’ Acute Support program to full‑time grandparent carers.

Implementing other Royal Commission recommendations

The Government continues to improve the experience for veterans seeking support by implementing other recommendations of the Interim Report.

This includes additional funding of $2 million over 2 years from 2023‑24 to continue the Department of Veterans’ Affairs mental health literacy and suicide intervention training program for the ex‑service community.

The Government is consulting on ways to simplify veteran compensation and rehabilitation legislation, so it is easier for veterans and families to understand their entitlements and receive the support they need.

Strengthening Australia's engagement with our region

Strengthening Australia's engagement with Southeast Asia and the Pacific

Deepening economic and people‑to‑people ties across Southeast Asia

The Government is deepening our engagement with Southeast Asia through innovative programs to support more people‑to‑people links, including specialised scholarships and support for the National Centre for Asia Capability (Asialink Business).

These represent critical investments that will complement the implementation of the Government's Southeast Asia Economic Strategy to 2040, to be released later this year.

Strengthening engagement with Pacific Island Countries

We are investing $1.9 billion over 5 years in a broad range of measures to deepen our connections with the Pacific family. This includes expanding and improving the Pacific Australia Labour Mobility scheme to support sustainable scheme growth and ensure the welfare of workers.

This investment demonstrates our strong and enduring commitment to the Pacific, boosting our contribution to security priorities and supporting the Pacific family first approach agreed by Pacific Islands Forum Leaders.

Ensuring Australians are paid the super they earn

Securing Australians’ Superannuation

Aligning the payment of super and wages for all employees

From 1 July 2026, employers will be required to pay their employees' super at the same time they pay their wages. This will enable employees to track their entitlements to ensure they are being paid on time and in full.

Increasing the visibility of unpaid super for the ATO

The Government is investing $27 million in 2023‑24 for the ATO to improve data capabilities, including matching both employers and super fund data at scale.

The ATO will also receive $13.2 million to consult and co‑design with stakeholders on a new ATO compliance system which will proactively identify instances of under or unpaid super in near‑real time.

Unpaid super recovery measures for the ATO

The Government will implement enhanced unpaid superannuation recovery targets for the ATO.

From 2023‑24, the ATO will be assessed on its performance on the payments made to employees as a proportion of super raised, and the amount of super raised and distributed within 12 months.

Adaobi is a 25‑year‑old hospitality worker. She is paid wages fortnightly as mandated by her employment agreement, but her super is paid only 4 times per year.

From 1 July 2026, Adaobi's super will be paid at the same time as her wages. As Adaobi's super will reach her fund quicker, she will see higher earnings over her working life and could be $6,000 or 1.5 per cent better off at retirement from compounding benefits of her super being paid more frequently.

Making our tax and superannuation system fairer

Fairer taxation of Australia's gas resources

The Government is reforming the Petroleum Resource Rent Tax to ensure a fairer return to the Australian community from Australia's liquefied natural gas resources while providing certainty to industry and investors to support domestic gas supply and ensure Australia remains a reliable trade and investment partner.

Implementing a global and domestic minimum tax

The Government is introducing a global minimum tax and a domestic minimum tax to ensure that large multinational enterprises pay a minimum level of tax in the jurisdictions in which they operate.

These measures will reduce incentives for multinationals to shift their profits to low‑tax jurisdictions, level the playing field for Australian businesses and protect Australia’s revenue base.

Improving the equity and sustainability of the superannuation system

From 1 July 2025, earnings on balances exceeding $3 million will attract an increased concessional tax rate of 30 per cent. Earnings on balances below $3 million will continue to be taxed at the concessional rate of 15 per cent.

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