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Tuesday, November 5, 2024

Budget to focus on temporary cost-of-living support

The budget is in better shape than expected as the federal government promises temporary cost-of-living support but remains coy on other priorities such as lifting JobSeeker. 

The government has been under pressure to substantially lift income support payments above $49.50 a day as recommended by its own economic inclusion committee.

Lifting the payment in line with the committee’s suggestions has been labelled unaffordable for a budget under pressure from several fast-growing spending areas but action on some of the 37 recommendations remains on the table. 

Industry Minister Ed Husic said there would be short-term relief in the budget and lifting JobSeeker was an important “longer-term” project. 

“We’ve got some short-term measures that we’re looking to announce to be able to give people cost-of-living relief. But there is a longer-term consideration that needs to be given, clearly, and we will do that in due course,” he told ABC News. 

Asked if the government would begin the task of reducing poverty in the May budget, Finance Minster Katy Gallagher reiterated there would be a cost-of-living package targeted at Australia’s most vulnerable.

“That’s what you would expect from the Labor government,” she told reporters in Canberra, noting the details would be revealed in the budget in just over a week. 

Several Labor backbenchers want a boost to the income support payment alongside many other politicians, academics and social welfare advocates.

The government is also expected to lift the age threshold for single-parent payments in the May budget above the current cut-off point when children turn eight.

The budget is in a healthier position than expected thanks to surging tax revenue from high commodity prices and a record number of Australians in work.

The finance minister also said a spending audit would help deliver a significant improvement to the bottom line.

Nationals frontbencher Barnaby Joyce said the previous government needed some credit for the strength of Australia’s economy.

“If the budget gets to a surplus … maybe it’s the last 10 years of government that helped it get there,” the former deputy prime minister told Seven’s Sunrise.

Mr Joyce also said soaring export prices added to the bottom line, with iron ore revenue significantly higher than forecast in the last budget.

“If the budget is a surplus you can thank coal miners and gas exporters and iron ore exporters,” he said. 

A review of Australia’s $120 billion infrastructure pipeline, announced on Monday, is also expected to deliver budget savings down the track. 

The government says many of the 738 projects have been delayed, cancelled or underfunded.

Also on Monday, the government announced $60 million for Canberra’s iconic Questacon science centre.

The money will go to upgrading exhibits for the 150,000 school children who visit the institution annually and helping Questacon take its projects on the road to regional communities.

Visitors can expect to pay about the same amount for entry into the building once the work is complete.

The federal budget will be handed down on May 9.

By Poppy Johnston and Dominic Giannini in Canberra

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