Federal Budget Outcomes

  • 15 May 2024

The Labor Government’s 2024 Budget is a good budget for working people, with wages forecast to rise, commitments to pay increases in the care economy, cost-of-living support on top of the July 1 tax cuts, and a historic commitment to the jobs we need, including manufacturing jobs in Australia.  Higher wages are the centrepiece of the Federal Budget with real wages going up by 4 percent for this financial year the same amount that they went up in total over the 10 years of the Coalition Government. 

Higher wages growth, the forecast moderation in inflation, continuing employment growth and the Government’s cost of living tax cuts are expected to support the economy from the second half of 2024.

The Government’s cost of living measures could see headline inflation return to the target band by the end of 2024, slightly earlier than expected.

Real wages are expected to grow by 0.5 per cent in each of the forecast years, supported by strong wage growth and easing inflation.

Employment is expected to continue growing, although by less than the growth in the size of the labour force, increasing the unemployment rate to 4.5 per cent by 2024-25.

Cost of living bonus
The new tax-cut plan – due to kick in from 1 July – will provide cost-of-living relief for Australian workers.  For example, a worker on average annual earnings of $72,753 will get a $1,498 tax cut. That’s an extra $28 in their pocket each week.

You can calculate your cost-of-living bonus here.

Further cost-of-living support
The Budget also includes a $300 energy bill relief payment to every Australian household from 1 July and an additional 10% increase in Commonwealth Rent Assistance.

Wage rises for workers in Aged Care and Early Childhood Education
The Government has committed to ensuring that those who look after our kids as they learn, and our parents as they age, have the secure, well-paid jobs they deserve, with the Budget supporting pay rises for those in Aged Care and Early Childhood Education, the majority of which are working women.

This is great news for thousands of workers, and comes off the back of years of campaigning from union members:

Paid Parental Leave on Superannuation
Eligible parents with a baby born or adopted on, or after, 1 July 2025 will receive 12% of the Parental Leave Payment as a superannuation equivalent payment to their super fund.

It builds on the Government's plan to increase the amount of paid leave new parents can take under the Commonwealth scheme to 26 weeks by mid-2026.

These changes are hard-fought-for campaign wins by union members!

Secure jobs for a secure future
The Future Made in Australia plan is set to create secure manufacturing jobs and develop new industries as part of the Government’s objective of turning Australia into a clean energy superpower.

The investment in skills also includes 20,000 new fee-free TAFE and VET places in construction, the introduction of paid placements for Australians studying to be nurses, teachers, and social workers, skilling the Clean Energy and Construction Workforce and additional support for apprentices and trainees.

After a decade of inaction and denial under the last Government, we now have a Government prepared to invest in a fast and fair energy transition to create secure jobs in the new industries that Australia needs, and the skills to support it.