Chalmers prepares for a $60 billion budget hit
Treasurer Jim Chalmers is preparing for a $60 billion budget shortfall over the next four years due to increased spending on hospitals, natural disasters, and welfare. Despite higher tax revenues from inflation and commodity prices, rising indexed payments and new policy commitments are straining the fiscal outlook. The government aims to address the gap through savings, tax reforms, and productivity measures in the upcoming budget.
- ▪The revamped five-year hospital agreement with states will cost an additional $25 billion.
- ▪Natural disasters like Cyclone Koji and Cyclone Alfred will result in a $2.5 billion budget hit.
- ▪Jobseeker payments are expected to be $3.2 billion higher than previously forecast due to economic pressures.
- ▪Defence spending will increase by $14 billion, adding to the fiscal burden.
- ▪Higher inflation is driving up indexed welfare payments, including $1.5 billion more for carers and $1.5 billion for aged pensioners.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at The Sydney Morning Herald.