What does the Federal Budget have in store?

What Does the Federal Budget Have in Store?

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote for The Western Weekender ahead of the May 2023 Federal Budget, previewing what Treasurer Jim Chalmers was expected to deliver and what it might mean for households managing through a difficult economic period.

The piece set the scene from a position of measured scepticism. Chalmers’ October 2022 mini-budget had offered a gloomy economic outlook without much by way of relief, and the expectation was that the full May budget would carry a similar tone. Labor had been consistently flagging weak economic growth projections over the following five years, framing the budget as a responsible but cautious document designed to provide cost-of-living relief while managing a volatile global environment.

Among the measures already confirmed or widely anticipated were a cash boost for young carers, cheaper medicine availability, funding for long COVID research and action against SMS scammers. Specific infrastructure and environmental spending was also on the cards. What was notably off the table was any revisiting of the legislated stage three tax cuts, which had been ruled out given the political risks of breaking an election commitment on a measure benefiting a large proportion of the electorate.

Mark’s framing captured where households were: caught between inflation that had not yet fully receded, an ongoing rate hiking cycle and a federal government focused on fiscal responsibility rather than stimulus. Against that backdrop, the budget was shaping up to be solid and measured rather than transformative.

For borrowers, the broader message was unchanged: economic conditions remained challenging and staying on top of your loan structure and repayment costs was more important than ever.

Whatever the budget delivers, your lending strategy should not rely on government policy alone. Contact Evolve Lending & Finance to make sure your finances are in the best shape they can be.