With an election looming, Treasurer Josh Frydenberg uses his address at the National Press Club to convince Australians his government's budget is the way forward for the country.
Key events
- Morrison defends accusations the cost of living measures are only temporary
- 'All the sincerity of a fake tan': Anthony Albanese calls the government's budget desperate
- Treasurer questioned why the $250 payment ends in April
- Watch the Treasurer Josh Frydenberg hand down the Federal Budget 2022
- Catch up on all the action from last night's budget blog
Live updates
By Maani Truu
That's all for today's federal budget blog
Thanks to everyone who followed along and sent in their feedback and questions.
Just can't get enough of economic policy? You can stay up to date by checking out the ABC News website or tune in to the live stream on iView.
Until next time!
By Maani Truu
'Wages will always be stronger under Labor': Chalmers
By Jane Norman
Heading into an election that'll likely be fought on wages and cost of living, Shadow Treasurer Jim Chalmers has made a bold statement that "wages will always be stronger" under a Labor government.
Last night's budget forecast wages would rise by 3.25 per cent next financial year, but after inflation is factored in, that only amounts to an increase of 0.25 per cent.
Labor has been highly critical of the government's track record on wages, arguing they've been stagnant for nearly a decade.
Chalmers told the ABC he's confident Labor can turn that around, even with rising inflation.
"Wages outcomes will always be stronger under a Labor government that cares about it, has a policy agenda to deal with this issue," he says.
"If you compare the wages outcomes under this government, 2.1 per cent average wage growth versus the last Labor government 3.6 per cent, you can see why working families are falling further and further behind under the government."
By Michael Doyle
Migration pipeline still clogged up
The government is maintaining the number in the permanent migration program at 160,000, but increasing the proportion of skilled migrants to about 70 per cent from 2022-23.
This returns the ratio to what it was before the pandemic, during which the proportion of family visas was increased to about half.
But Gabriela D'Souza, a senior economist at the Committee for Economic Development of Australia, says it's important to remember visas are still taking too long to process.
"I think a lot of people kind of assume that we flip the switch on migration and everything can go back to normal, but in reality, people still need visas to enter, and those visas would need to be approved by the department and it's just not happening that quickly," she says.
Melbourne-based registered migration agent Sean Dong says in the past two years, spouse visas and some in-country skilled visas were being processed more quickly but visa applications from outside the country "in all categories have stalled".
"The government has been very slow in granting permanent visas and is more interested in short-term temporary workers to solve short-term problems," he says.
By Maani Truu
Labor is still to decide if it will support changes to the paid parental leave scheme
By Stephanie Borys
Federal Labor is yet to decide whether it will support proposed changes to the paid parental leave scheme.
Yesterday's budget included the Coalition's plan to offer 20 weeks leave — paid at the minimum wage — to couples who earn less than a combined $350,000 a year.
The parents can then divide the 20 weeks between them as they choose.
Currently, the primary carer can access 18 weeks of paid leave and the secondary carer is entitled to two weeks.
The government plans to introduce the changes from March next year if it wins the election.
Shadow Treasurer Jim Chalmers told ABC News Labor would look at the proposal.
"What we want to do is to make sure we strike all of the right balances and provide an opportunity for parents to be with their kids especially when they're little," he says.
"It may be what the government is proposing is a good idea.
"I'm inclined to support it but we have to conclude a view on it that involves other colleagues too."
The government has rejected calls to add superannuation to paid parental leave and Labor, which initially supported added super, is reassessing its position.
By Michael Doyle
Queensland Treasurer says federal budget leaves state government without clarity
The Queensland Treasurer says his government's wish for a 50:50 partnership with the Commonwealth for health funding and the flood recovery and resiliency program is still unclear.
Cameron Dick told ABC Radio the state government is hopeful but does not know.
"We were putting in about $355 million and we wanted the same from them. Hopefully the money's there. It's not clear in the budget papers," he says.
"We just want a simple yes so we can crack on with it and we just need that at the moment."
By Maani Truu
Scott Morrison reschedules ABC 7.30 interview
If you were planning to tune in to watch the Prime Minister's interview with Leigh Sales on 7.30 this evening, you can cross it out of your diary.
Sales says Morrison has withdrawn from tonight's scheduled interview and will appear next Tuesday instead.
By Maani Truu
Chalmers responds to Frydenberg's address
The National Press Club has wrapped up, and Labor's Treasury spokesperson Jim Chalmers has appeared on ABC News.
He says Labor will not stand in the way of cost of living relief.
"We've got to be responsible about it and we can only play the cards we are dealt, and so we asked whether or not we support this election-eve cost of living relief and we will support that," he says.
"But this is not the only defining feature of the budget, the budget has got $1 trillion in debt and not enough to show for it."
By Maani Truu
Frydenberg 'not looking forward' to another budget in a hurry
As we know, this budget comes on the eve of a looming federal election.
The Conversation's Michelle Grattan asks what we can expect from next year's budget if the Coalition is re-elected:
"I have done three budgets in 18 months, I am not looking forward to the next one in a hurry," Frydenberg says.
"My focus is on winning the election, explaining to the Australian people the granular detail in this budget, the cost of living relief now, the long-term economic plan, the guaranteed essential services, the further investments in defence.
"Our plan is set out in the budget. That is our plan. They are our policies."
By Maani Truu
It's time for questions
Josh Frydenberg has wrapped up his speech and is now taking questions from journalists.
First up is ABC's Laura Tingle, who asks why he didn't mention measures to address what's happened during the pandemic in hospitals and aged care and whether it's actually possible to cut spending when we have an ageing population.
"You are right, there have been substantial increases in the major areas, such as health and aged care," Frydenberg says.
"I want to also underline the fact that the budget improvement we have seen last night has been the result largely of a stronger labour market.
"The fact that the unemployment rate today is at 4 per cent is far better than what Treasury were forecasting ... It has been better than even our most optimistic expectations.
"As a result, our revenues have gone up from income tax and our expenditure from welfare payments has gone down. So there are some important developments occurring across the economy, where we are being required to spend more on aged care, NDIS and defence.
"By growing the pie we can, as we showed last night, reduce our deficits over time, steadily."
By Maani Truu
Australia facing a 'less stable region in the years ahead': Frydenberg
Josh Frydenberg has moved on to national security and defence, warning Australia faces a "less stable region" and a "more uncertain world, whether we like it or not".
"What Russia is doing today is not just challenging the international rules-based order, but will substantially change the trajectory of globalisation," he says.
"The stakes are high. Strategic competition is on the rise. Economic coercion is more pronounced. Critical supply chains are under pressure.
"Today, national security and economic security are intrinsically linked."
By Maani Truu
Frydenberg says cost of living is the number one concern for Australians
According to Treasurer Josh Frydenberg, the big conversation happening around kitchen tables is the rising cost of living.
"This is a global phenomenon impacting us here at home," he says.
"The price of oil is up by 50 per cent since the start of the year. Wheat prices are up by 40 per cent since the start of the year. And shipping costs today are more than five times what they were pre-COVID."
He says the government's budget measures will "provide real relief to Australian families at a time when they need it most".
By Maani Truu
Australia remains resilient, Australians remain strong: Frydenberg
The federal Treasurer has kicked off his National Press Club address by lauding Australia's pandemic recovery.
"The verdict is now in. Australia has seen an economic recovery that is faster and stronger than the United States and the United Kingdom, and France, and Germany, and Italy and Japan," Josh Frydenberg said.
He pointed to a double-dose vaccination rate of more than 95 per cent, which he said, put Australia in the top 10 countries in the OECD, and a mortality rate that was the third-lowest in the OECD.
"This was not luck," he says.
"More than 1,000 individual decisions across all areas of government have put our government in the strong position it is in today.
"It is our record and last night I set out our plan for an even stronger future."
By Michael Doyle
Josh Frydenbeng says Australia's economy has 'real momentum'
Treasurer Josh Frydenberg is championing his budget, focusing on wages.
"Last night's budget demonstrates that our economy now has real momentum. Growth is higher, unemployment is lower, and wages are strengthening," he said.
"Wages have been upgraded in every year of the forecast, and the wages price index is expected to reach 3.25 per cent next year — the strongest in almost a decade."
By Maani Truu
Watch Josh Frydenberg's address to the National Press Club
By Michael Doyle
Federal Treasurer Josh Frydenberg will address the National Press Club at 12:30pm AEDT
By Maani Truu
Four things you should know about the budget
If you're short on time and just after the key changes in the budget, this one's for you. Here's a super quick rundown on what you should know.
- 1.From 12:01am today, Australia's fuel excise (aka the money you're giving to the government at the petrol pump) has been halved from 44.2 cents per litre to 22.1 cents. But don't rush out to fill up your car just yet — Treasurer Josh Frydenberg says it'll take at least two weeks to filter through to the price you see at the pump.
- 2.There were some changes to paid parental leave. The 18 weeks at minimum wage for an eligible carer will be combined with the two weeks of Dad and Partner leave to give families 20 weeks they can use more flexibly. The plan has been given a deadline of March 1 next year to get going.
- 3.The PBS safety net threshold has been cut. It drops from just over $1,542 to exactly $1,457.10 before out-of-pocket costs are cut. If you're on a concession card, that goes from $326.40 to $244.80. It means around 2.4 million people will reach the cap earlier.
- 4.There are a few cash injections coming for some. There's a one-off $250 cash payment for about six million Australians — that's pensioners, carers, veterans, job seekers and eligible self-funded retirees, among others. Low- and middle-income earners will get a bit back in their tax returns — there's a one-off $420 payment from July 1, and the low- and middle-income tax offset (LITMO) will stay for another year, which can put another $1,500 in your bank account (after a tax return).
And if you're more of a visual learner, here's that info in graphic form.
Now, the real question is: how did you fare personally? Use our income tax calculator to find out what you might be eligible for.
Reporting from Peta Fuller.
By Michael Doyle
By Michael Doyle
'Our relationships with the Pacific are not temporary'
Temporary pandemic assistance for Pacific nations should be made permanent, says the Australian Council for International Development's chief executive, Marc Purcell.
The federal government has committed an additional $460 million in foreign aid to temporary COVID measures, including about $285 million for the Pacific.
"Our relationships with the Pacific are not temporary. We assume that China's growing influence into the Pacific is not temporary," Mr Purcell said.
"I don't think it's serving our national interests well at all."
Stephen Howes, from the Development Policy Centre at the Australian National University, welcomed a decision to restore indexation to the aid budget.
But he said it would not match the current rate of inflation and with temporary measures removed the aid budget was projected to fall again in coming years.
"What's worrying about the aid budget is … it's sort of like the cut hasn't been banished, it's just been pushed out," he said.
Reporting by Maria Faa
By Maani Truu
Labor's budget claims either stupid or misleading: Birmingham
Finance Minister Simon Birmingham has described Labor as being either stupid or misleading, after the Opposition claimed there were billions of dollars of secret cuts in the budget.
Labor has claimed the budget contains $3 billion of cuts in decisions that have been made but not announced.
But Birmingham told Sky News they had incorrectly interpreted the budget papers:
"We were finalising content in the details of that, but we provisioned for it in the responsible way you do. It now shifts from that budget line to the other one, so it's a bit of either complete stupidity from the Labor Party — unable to read the budget papers — or just being completely misleading in the way they're presenting it."
Speaking to ABC News earlier this morning, Labor leader Anthony Albanese described the Coalition's budget as having "all the sincerity of a fake tan".
By Maani Truu
South Australian Treasurer worried about lack of defence spending
Western Australia was promised $4.3 billion in last night's budget for a new shipbuilding facility.
But no extra cash will go toward the Osborne shipyards in Adelaide, despite being earmarked as the place where Australia's new submarine fleet will be built.
South Australian Treasurer Stephen Mullighan says money to lease extra land at the site will have to come from the Defence Force's existing budget.
"We have some reassurances but we don't actually have a firm budgeted commitment that this work is going to be done here in South Australia and when we see these huge investments being made in other parts of the country, well, it puts a shiver up the spine of what is a really important part of South Australia's economy and that is the shipbuilding industry," he says.
