In her early analysis of the federal budget papers Mayo MP Rebekha Sharkie grades the federal budget a B+, saying that after several years of deficits, the 2023 budget delivers a modest surplus of $4.2 billion. 

This is a substantial turnaround from recent COVID-19 effected budgets, largely assisted by a strong labour market and historically high commodity prices.

Ms Sharkie says the federal government has applied considered investment in critical areas such as cost of living, health and aged care, and energy and climate, while also securing extra revenue from savings and other measures such as the Petroleum Resources Rent Tax reform.

“The Government claims the budget “strikes a balance between relief, repair, and restraint”. While I think that is a fair call, like all budgets there are measures that many will be happy with and some that will disappoint. On that basis I grade this budget as a B+.

“Lifting the rate of Job Seeker, Youth Allowance and Austudy as well as lifting the payments for those aged over 55 was desperately needed and it is pleasing to see Commonwealth Rent Assistance is also increased.

“There isn’t much in this budget for working households and middle Australia and particularly those of us in the regions may feel left out this budget.

“Investment in climate and the environment is pleasing however I would like to have seen more investment in infrastructure in the regions”.

Ms Sharkie says that while it is positive that aged care workers will receive a much deserved pay rise, she is very disappointed that $2.2 billion has been redirected from residential aged care, resulting in a reduction in aged care places.

Mayo MP Rebekha Sharkie’s budget summary:

ENVIRONMENT

• $236 million over 10 years from 2023-24 and $13.9 million per year ongoing from 2032-33 to remediate high priority flood warning infrastructure.
• Murray Darling Basin will receive $148.6 million over four years from 2023-24 for sustainability measures.
• $1.3 billion for household energy upgrades to improve energy performance.
• $2 billion to accelerate development of Australia’s hydrogen industry (Hydrogen Headstart).
• Nature Positive plan - $214.1 million over four years to enforce environmental laws, establish Environment Information Australia to provide authoritative environment information.
• $1.3 billion over five years from 2023-24 from the $1.9 billion allocated in the October budget to support the decarbonisation of existing industries.

SMALL BUSINESS

• $20,000 instant asset write off for small businesses with aggregated turnover of less than $10 million from 1 July 2023 until 30 June 2024.
• Small and medium businesses with aggregated annual turnover of less than $50 million will be able to deduct an additional 20 per cent of the cost of eligible depreciating assets that support electrification.

WELFARE

• $4.9 billion over five years to support people receiving working age payments:
• Increase in the base rate of working age and student payments by $40 per fortnight, applies to Jobseeker, Youth Allowance, Parenting Payment (partnered), Austudy, ABSTUDY, disability Support Pension (Youth), and Special Benefit payments.
• Extended eligibility for the existing higher single JobSeeker Payment rate for recipients aged 60 years and over to recipients aged 55 years and over increasing $92.10 per fortnight for Jobseekers aged 55 years and older.
• $3.7 million in 2023-24 to provide age and veteran pensioners a once-off credit of $4,000 to their Work Bonus.

COST OF LIVING

• $3 billion for energy bill relief to five million households and one million businesses. From July 2023 up to $500 per eligible household and up to $650 per eligible small business.
• $1.3 billion household Energy Upgrades Fund to create low interest loans and fund upgrades to social housing.
• Increasing maximum rates of Commonwealth Rent Assistance by 15 per cent, $2.7 billion over 5 years.
• New incentives to encourage the supply of rental houses:
• Reduction in the withholding tax rate for eligible fund payments from managed investment trusts for newly constructed build to rent developments from 30-15 per cent.
• Increasing the capital works tax deduction (depreciation) rate from 2.5 to 4 per cent.
• Estimated to increase rental properties by 150,000 over 10 years.
• Increasing National Housing Finance and Investment Corporation’s liability cap by $2 billion to a total of $7.5 billion.

HEALTH

• The budget includes $5.7 billion in funding over five years for primary healthcare services and Medicare. These include the following issues on which Ms Sharkie has advocated:
• $3.5 billion to triple bulk billing incentives for many common GP consultations, for children aged under 16 years, pensioners and other Commonwealth concession card holders.
• $81.8 million for changes to encourage nurses, midwives, First Nations health workers and international medical graduates to work in regional and rural areas and aged care.
• $951.2 million upgrade My Health Record, to support sharing of information for better patient safety.

Additional Measures

• $358.5 million for eight new Medicare Urgent Care Clinics reducing pressure on other parts of the health system, much needed in Mayo.
• $445.1 million to improve provision of team-based primary care through general practice.
• $98.2 million for new Medicare rebates for consultations longer than 60 minutes to support patients with chronic or complex needs, including mental health issues.
• $46.8 million for Medicare rebates for nurse practitioners such as the Kangaroo Island nurse practitioner program. Nurse practitioners and participating midwives will also be able to prescribe PBS medicines and services under Medicare to help make care more accessible and affordable in rural and regional parts of Mayo.
• $586.9 million for more critical mental health services, to address workforce shortages and $68.3 million for better drug and alcohol prevention and treatment.

AGED CARE

• $11.3 billion for a 15 per cent pay rise for aged care workers.
• Aged care residential places reduced from 78 to 60.1 places per 1,000, while there are still shortages, redirecting $2.2 billion to other areas within aged care.
• An extra $309.9 million over five years to implement the Royal Commission into Aged Care Quality and Safety recommendations and $827.2 million to improve delivery of aged care services.
• $338.7 million over four years to improve the in-home aged care system including $166.8 million in 2023-24 for an additional 9,500 home care packages.
• 300,000 fee free VET and TAFE training places will support critical industries including in the care sector.

DISABILITY SUPPORT

• NDIS investment of $732.9 million to improve NDIS capability and systems and support participants to manage plans, and crack down on rorting in the sector.

EDUCATION AND CHILDCARE

• $35 million over four years to attract and retain more teachers into the profession.
• $18 million in grants available to fund new childcare centres for priority areas in childcare ‘deserts’ including several in Mayo (Mount Barker, Nairne, Yankalilla, Strathalbyn surrounds and Goolwa/Port Elliot).