The excitement – and media blitz – of federal budget week has subsided, Now the real work begins: implementing the policies that the treasurer, Jim Chalmers, has unveiled.
Some of the government’s major changes, such as increased bulk-billing incentives for GPs, do not require legislation. The commonwealth’s portion of the energy bill relief plan already passed parliament last year and hinged on negotiations with state governments to deliver their half.
But numerous other measures such as increasing jobseeker and rent assistance payments, creating a national net zero authority and several tax changes, will require legislation, and already the Coalition and key Senate players are drawing up their battle lines.
Cost-of-living package – likely to pass
The Greens and independent David Pocock joined social advocates in criticising the smallness of the $40-per-fortnight increase to the jobseeker payment and boosting the commonwealth rent assistance maximum cap by 15%, but are unlikely to oppose those increases in parliament.
Getting the Greens and Pocock’s backing will mean those changes will pass. The social services minister, Amanda Rishworth, said “the new rates will commence from 20 September 2023, subject to the passage of legislation”. But the stance of the Coalition is still not certain.
The opposition leader, Peter Dutton, expressed support for boosting payments for over-55s, and in his budget reply speech, suggested his own policy of letting jobseekers work more hours before their payments are affected. But he resisted saying how the Coalition would vote on Labor’s jobseeker change.
Dutton said the Coalition backs the rent assistance boost.
Energy bill relief – doesn’t need new legislation
The energy bill plan comes in two parts: a commonwealth payment and another from state or territory governments. The federal government already passed legislation for its portion in December. The states have announced their plans on their own after negotiations with the commonwealth. No new legislation is required and people on government payments will get help in July.
The Coalition supports the changes.
Increases to bulk billing – no legislation required
The office of the health minister, Mark Butler, said the tripling of incentives to GPs to bulk bill children and vulnerable patients can be done through government regulation. But some experts query whether it actually will lead to more bulk billing.
The Coalition supports the changes.
PRRT changes – outcome uncertain
Changes to the contentious petroleum resource rent tax would cap tax deductions for gas projects at 90%. The government says it would raise $2.4bn, in a much more modest proposal than some previous suggestions.
The Greens have been scathing of the proposal, claiming it was “less than the bare minimum” and critical of the changes being “designed by the gas industry”. Senator Nick McKim said last week that the government shouldn’t count on their support. The Greens have proposed a far more ambitious idea that would eliminate accumulated credits which reduce companies’ tax liability.
The prime minister, Anthony Albanese, last week called on the Coalition to support the changes. Dutton was critical of “increasing taxes on offshore gas and oil projects”, but didn’t say how the Coalition would vote – although their position may be influenced by the gas industry’s strong support for the reform.
Vaping and smoking changes – likely to pass
Increasing the tobacco excise by 5% for three years will net $3.3bn, the budget forecasts. It will require legislation, but both the Coalition and Greens are reserving judgment.
A crackdown on vaping products, announced this month, would ban flavoured and coloured vapes, as well as requiring a doctor’s prescription to access pharmaceutical products. It’s understood the government is still finalising the changes, which may require legislation.
Dutton has said the Coalition will back “sensible measures” in cracking down on vaping, noting a “significant problem” that needed addressing, but said the opposition would wait for detail before settling a position.
The Greens are also waiting for detail before announcing their position.
Net zero authority – likely to pass
The creation of a government body to handle Australia’s transition to net zero will need legislation. The Greens will probably support it, ensuring its passage.
Other tax changes
Chalmers’ office said measures to boost GST compliance and the heavy vehicle road user charge would not require legislation. The Coalition has already referred to the heavy vehicle changes as a “truckie tax”.
But the passenger movement charge increase and tax breaks, such as instant asset write-offs for small business, will require law changes. The Coalition is unlikely to oppose the small-business benefits but do not support passenger departure charge – paid as a tax on people leaving the country.
The shadow tourism minister, Kevin Hogan, referred to it as a “tourism tax”, claiming it would “deter international travellers from coming to Australia”.
