Economy
What you should know: The scourge of inflation is finally set to ease as high interest rates curtail spending. The government claims its cost-of-living relief measures will reduce inflation by a quarter of a percentage point,but some economists have cast doubt on this claim,which will be key to the government’s economic narrative. The economy will slow markedly,but unemployment shouldn’t rise dramatically.
Debt and deficit
What you should know: The first surplus since the Howard government is the stuff of Labor dreams. The Coalition will argue the turnaround was driven by higher revenue from high commodity prices,but Labor will hammer home the fact that it banked nearly 90 per cent of the revenue rises. Deficits in future years are much smaller than expected,meaning future surpluses could be secured if the government chooses to wind back controversial income tax cuts or tax concessions.
Cost of living
The government claims its cost-of-living relief measures will reduce inflation,but some economists have cast doubt on this claim.Penny Stephens
What you should know: A modest,across-the-board rise in unemployment benefits has been announced after sharp criticism of mooted plans to grant a rise only to older Australians. After commodity prices massively boosted the budget bottom line,expect the Greens and others to accuse Labor of depriving the most needy.
Health
What you should know: State premiers have used their pulpits to pressure the federal government to spend big on fixing Australia’s broken primary healthcare network. A large increase in spending to encourage bulk-billing was one of the key demands of doctors’ groups and some states.
Climate and energy
Vulnerable Australians will receive rebates on their energy bills worth up to $500,with the $3 billion cost jointly funded with state and territory governments.Luis Enrique Ascui
What you should know: Significant new spending on climate measures– a key plank in the government’s political agenda that differentiates it from the Coalition and helps stimulate growth in future industries.
Housing
What you should know: The government’s major policy to drive investment in social housing is deadlocked in a Senate standoff with the Greens. Rental assistance will be welcomed by advocates,but a minor expansion of a first home buyers’ scheme is unlikely to make a dramatic difference to housing affordability.
Defence
The Defence Strategic Review recommended a sweeping overhaul of the nation’s military.Getty Images
What you should know: The Defence Strategic Review recommended a sweeping overhaul of the nation’s military in response to challenges in the region (read:the rise of China),but the government has been restrained in terms of new spending promises. Too restrained,according to defence experts. Defence spending is growing along its previous trajectory but will begin to balloon in coming decades as the AUKUS submarine program ramps up.
Infrastructure
What you should know: The government has launched a snap review of its entire infrastructure pipeline,which it says blew out under the Coalition. While some overspending was no doubt due to poor planning,major road and rail projects are facing cost pressures including from overseas supply shocks. Deals with the Queensland government to fund the Olympics,which Labor says the Morrison government failed to properly fund,are proving costly.
Cut through the noise of federal politics with news, views and expert analysis from Jacqueline Maley..