Treasurer Jim Chalmers hints at what’s in store for Aussies in May Federal budget

Jim Chalmers has pledged to fund pay rises for aged care workers and hinted at support for Australians struggling with the cost of living in his next Federal budget. 

The Treasurer, who was speaking in Washington DC, also confirmed that there will not be any new tax cuts in next month’s budget. 

In a preview for his announcement next month, Dr Chalmers discussed several topics, including a pledge to help states tackle labour shortages and the soaring cost of construction. 

And he also insisted that the government would be giving ‘meaningful support’ to Aussies struggling in the current cost-of-living climate. 

These steps include a 15 per cent pay rise for aged care workers, which will cost almost $8billion over four years.  

In a preview for the budget he will deliver next month, Dr Jim Chalmers discussed several issues it will address 

Meanwhile, a package targeting the cost of living will focus on energy bill relief. 

Dr Chalmers also did not rule out lifting the JobSeeker unemployment benefit from $693 a fortnight.

‘We understand that people are under the pump … We will provide meaningful support where we can,’ he said, while speaking in Washington.

‘We are serious about managing the economy in the most responsible way, and that requires trimming spending in some areas in order to make important investments.’

Dr Chalmers also revealed he would not go further than tax changes he has already announced on superannuation concessions and multinational rates.

‘This is an important input into our thinking about the budget, but we’ve also been realistic and upfront about saying that there are more good ideas provided to us than there is the capacity to fund all of them,’ he said, according to the Herald Sun.

The Treasurer also shared his concern over the state of the housing market and rent rises and criticised the Coalition and the Greens for blocking Labor’s $10billion affordable housing fund.

Measures will include a 15 per cent pay rise for aged care workers, which will cost almost $8billion over four years

However, he refused to shed any light on the future of Labor’s ‘Help to Buy’ scheme, its shared equity concept to help prospective homebuyers into the market sooner, and a key election pledge. 

Discussing migration, Dr Chalmers also said Australia still had not filled ‘the gap created by Covid’.

His comments come days after the International Monetary Foundation revealed that Australia would likely avoid a recession. 

Dr Chalmers previously said neither Treasury nor the Reserve Bank were expecting Australia to slip into recession but the economy was forecast to slow.

‘We are better placed than most countries because of lower unemployment, because of the prices we’re getting for our exports and some of the other advantages we have,’ he said.

The IMF predicted Australia’s GDP growth would stall to 1.6 per cent this year, followed by a 1.7 per cent lift in 2024.

The forecasts were slightly ahead of those for the US and Canada, while the UK economy was expected to shrink.

Dr Chalmers said each nation had its own combination of economic challenges.

‘But as the IMF points out, we won’t be immune from a global slowdown,’ he said.