2022-3 Federal Budget Predictions: Pensioners set to win big
Tonight, we’ll see the new federal budget (and the Albanese government's first) passed down. So what can we expect?
Treasurer Jim Chalmers warned that ‘It won’t be fancy. It won’t be flashy. It will be responsible. It will be solid.’
It was previously expected that support for seniors/aged pension recipients would increase by $55.3 billion for 2022-23, an increase of $1.1 billion in 2022-23 and $11.8 billion over four years.
Instead, Jim Chalmers confirmed during a series of interviews on Sunday that $33 billion will be pledged to aged pension and welfare recipients. Of this $33 billion, only one-third is expected to be passed onto pensioners over a four-year period.
Who is expected to benefit from today’s budget? Image Credit: Shutterstock
‘We know that people are still doing it tough,’ Dr Chalmers told ABC.
‘One of the pressures on the Budget is making sure we can find room for that indexation so that people who are on pensions and payments get a little bit of help twice a year to try and keep up with the skyrocketing cost of living,’ Chalmers told ABC News.
Now, I’m sure you’re all well aware of the biannual welfare payment review (which is a long-anticipated event). We saw payments boosted in September this year and another increase is not expected until March 2023. September marked the
largest pension increase in 12 years which makes sense, given the soaring inflation.
The maximum full Age Pension increased $38.90 per fortnight for a single person, and $29.40 per person per fortnight for a couple. The maximum pension rate is now $1,026.50 per fortnight for singles and $773.80 per person ($1,547.60 per couple) for pensioner couples.
Inflation is forecast to peak at 7.75 per cent by the end of this year and fall to 5.75 per cent by the middle of next year. Interest rates are rising and the Australian Government debt is trending towards $1 trillion. As of October 14, it stood at $892.3 billion.
Despite this, pensioners are set to be one of the most supported groups by the new budget. Christian Baylis from Fortlake Asset Management told Sunrise, ‘Gen Y, Gen Z, the millennial brigade, not a lot of love in this budget for them.’
Before the election, Labor pledged $10 billion to the Housing Australia Future Fund to build 30,000 housing properties in the next five years. Now, the Sydney Morning Herald predicts the budget to include plans for one million affordable houses.
Can we expect any other support from the government? We’re hoping as the budget draws closer we’ll see announcements about increased healthcare funding but only time will tell.
Will you be tuning in? If not (or even if you are), we’ll have all the important details for you bright and early tomorrow. In the meantime, we’d love to hear from you. What do you want to see in this year's budget?
You can also try your hand at balancing the budget with this
nifty interactive activity by The Guardian. It's harder than it looks!