Australia Institute May 2023 Budget Wrap


As interest rates bite and unemployment rises, is there finally good news for those on JobSeeker?

by Matt Grudnoff

The budget paints a bleak picture when it comes to the economy over the next few years. It is not predicting a recession but rather a big slowdown in economic activity. Economic growth is predicted to more than halve from 3.25% this year to 1.5% next year. Consumers who have been hit hard by interest rate increases will see their spending growth slashed from 5.75% this year to 1.5% next year. Continue reading →

Housing Affordability: A Missed Opportunity for Serious Reform

by Lilia Anderson

This budget was an opportunity for the Federal Government to address the housing affordability crisis. While there were some limited provisions, overall, much-needed structural reforms were overlooked in favour of short-term fixes. Continue reading →

Impacts of inflation

by David Richardson

The government has announced a number of measures designed to ease cost of living pressures. The budget papers estimate that they will take 0.75 percentage points off the CPI in 2023-24, reducing inflation to a forecast 3.25 per cent in 2023-24. Continue reading →

Forever Young (and forgotten)

by Eliza Littleton

For a cost-of-living budget, there was not much help offered for one group that is particularly affected by higher prices: young people. Young people earn some of the lowest wages, making them particularly vulnerable to the effects of inflation. Continue reading →

Tinkering with the fringes of gender equality

by Eliza Littleton

The strongest budget for women in the past 40 years? Continue reading →

Interest on government debt: Much ado…?

by David Richardson

Treasurer Jim Chalmers continues the long tradition of treasurers complaining about the size of the government debt and the interest payments on that debt. Continue reading →

The budget in six charts

by David Richardson

While a surplus of around $4 billion has been recorded in this year’s budget, it is not projected to last. A slowdown in GDP growth is expected, and a deficit – likely to continue for years – is forecast for the 2023-24 financial year. Continue reading →