First Federal surplus budget in 15 years

Treasurer Jim Chalmers has delivered what he says is a “responsible and affordable” budget, aimed squarely at helping with the cost of living and proving that Labor can manage the economy by putting downward pressure on inflation

As well as forecasting the first surplus in 15 years – and Labor ’s first since 1989 –there are multibillion-dollar packages for income support and healthcare

Cost-of-living relief: Five million households and 1 million small businesses will get energy bill rebates worth up to $500 and $650 respectively, but eligibility will be limited to pensioners, veterans, seniors, concession card-holders and recipients of other concession schemes JobSeeker, Youth Allowance and Austudy will increase by $40 a fortnight from September, while a higher rate of JobSeeker for over60s will be made available for over-55s

The single-parent benefit will be extended until a recipient’s youngest child turns 14, equating to $176 90 extra a fortnight

The bottom line: These schemes target the most vulnerable, but critics say the payments won’t go far, and middle-income earners doing it tough may feel left out.

Housing: In response to the housing affordability crisis, the government will increase rent assistance by 15 per cent – up to $31 extra a fortnight – for more than a million low-income renters at a cost of $2.7 billion over five years

The National Housing Finance and Investment Corporation’s liability cap will be increased by $2 billion for spending on social and affordable housing, and the First Home Guarantee will be expanded from partners and spouses to any two eligible borrowers

The bottom line: Rental assistance will be welcome, but Housing Minister Julie Collins last week conceded there is “no silver bullet” to deal with soaring rents and housing shortages

Healthcare: About 11 6 million children, concession cardholders and pensioners will get better access to free GP visits thanks to Medicare bulk-billing incentives worth $3 5 billion

This will triple the financial reward for doctors who don’t charge vulnerable patients out-of-pocket fees. Going to the pharmacist will be made cheaper by allowing people to buy two months’ worth of certain medicines for the price of a one-month prescription Almost $250 million will be spent tackling the black market for vapes and rolling out a new anti-smoking campaign

The bottom line: The government wants to resuscitate plummeting bulk-billing rates and lower soaring patient gap fees

Environment and energy: More than $2 billion has been committed to grow the emerging hydrogen industry, with a focus on green hydrogen, which is produced with renewable energy and has no emissions.

There’s also $1 3 billion for the household energy upgrades fund, which offers low-interest loans for solar panels and other energy efficiency improvements, plus $400 million for a Net Zero Authority to aid the transition away from fossil fuels

The bottom line: Labor is keen to stimulate growth in future industries and differentiate itself from the former Coalition government.

The economy: A $4 2 billion budget surplus is forecast this financial year, followed by deficits of $13 9 billion next year and $35 1 billion the subsequent year Economic growth is predicted to slow from 3 25 per cent this year to 1 5 per cent next year before recovering to 2 25 per cent the following year Inflation is forecast to fall from a height of 7 per cent earlier this year to 3.25 per cent by the middle of next year.

Unemployment is set to rise from 3 5 per cent to 4 25 per cent next year, while wage growth is expected to rise and outstrip inflation from 2023-24

The bottom line: The economy will slow but unemployment shouldn’t rise dramatically, and real wage growth is within sight Surpluses could be achieved again if the government winds back controversial tax cuts

The rest: Nearly $20 billion will be spent over four years implementing the Defence Strategic Review, including $9 billion on AUKUS nuclear-powered submarines Almost $2 billion will be spent on improving relations with Pacific island nations to counter China’s growing influence Australians who travel overseas will pay $10 more for a passenger movement charge and the cost of securing a visa to enter Australia will rise A GST crackdown on businesses will raise an extra $3 8 billion, multinationals will face a new minimum tax rate of 15 per cent and gas companies will be taxed an extra $2.4 billion over five years under changes to the Petroleum Resource Rent Tax REACTIONS:

Opposition treasury spokesman Angus Taylor claimed the “big-spending, big-taxing budget” would leave families worse off but also criticised spending, saying it would add to inflation. Greens leader Adam Bandt said the budget is “a betrayal of renters, jobseekers and people doing it tough”, while Independent Senator David Pocock said the $40 per fortnight increase to JobSeeker is laughable and embarrassing.

Australians among world’s most prolific gamblers

Gamblers who use their credit cards to fund online betting will soon be out of luck with the Government moving to ban the practice. The ban will bring online gambling into line with in-person services where credit cards cannot be used

Australians are some of the most prolific gamblers in the world, having the highest losses per adult They lose $25 billion each year, with an estimated one in 14 Australians experiencing, or at risk of experiencing, gambling harm. The legislation will be introduced later in the year

Communications Minister Michelle Rowland said there was widespread community support for the ban

“Legislating a ban on the use of credit cards for online gambling will help protect vulnerable Australians and their loved ones ” The communications watchdog will be granted extra powers to enforce the ban, which will use bank identification numbers to find and block credit card payments Lotteries, such as those used by charities, will be exempt due to the low risk of harm

Social Services Minister Amanda Rishworth said the Government was not against Australians having a punt, but did not want people to use debt to finance their gambling

Australia's largest gambling company Tabcorp said it supported banning credit card used for online betting Independent MP Andrew Wilkie, who has long championed gambling reform, said the ban would be an important start to minimise gambling harm

But he did not want the process of legislating and implementing it to be slowed down by further consultation when it already had widespread support "The fact that online gamblers have been allowed to use borrowed money at exorbitant interest rates is unfathomable," he said.