‘Most responsible’: Labor pledge for high-stakes budget
Labor will tout its tightest ever budget as sweeping changes to the National Disability Insurance Scheme allow it to make further savings on rising spending.
But the government also faces accusations that it is going after “mom and pop” investors as family trusts add negative contributions to the list of possible targets for capital gains, tax breaks and change.
Finance Minister Jim Chalmers, who will hand over the federal budget on May 12, said Monday the fiscal plan would include net savings for the second year in a row.
Labor recently announced that at least 160,000 people are expected to be removed from the NDIS by 2030 as the government restricts increases in scheme spending.
The move would do the heavy lifting on budget repairs, saving estimates of more than $35 billion, but states are alarmed that it is shifting the financial burden of people with disabilities onto health and education systems.
Another 3 billion dollars will be saved by removing the age-related loading in the private health insurance discount, which was also announced in April.
Dr Chalmers said the government had shown restraint in its budget measures.
“Responsible economic management has been the hallmark of this Albanian government, and the May budget will be our most responsible yet.” he said.
Senior Labor figures have done little to dampen expectations that the budget will bring major changes to capital gains tax relief and negative impacts for investment properties.
Asked on Sunday whether the public would support Labor’s changes to the 2025 election, Prime Minister Anthony Albanese said voters would make up their own minds about his government’s record.
He noted that the measures could also be implemented following existing investments, and when asked about grandfathering arrangements, he said everything in the budget focused on “urgent needs.”
The government is also reportedly considering tax changes for family foundations.
Speaking to the Australian Chamber of Commerce and Industry in Melbourne on Monday, shadow treasurer Tim Wilson will describe the expected changes as “a tax agenda attack on the family”.
“Capital gains tax applies to ordinary Australians, mums and dads, but it probably won’t apply to industry super funds or foreign investors in renewable energy,” he told the business group.
“Labour is creating a class of Australians who are committed to being in office. The aim of this government is not a better Australia; it is to secure power.”
The government will suspend the commercial broadcasting levy for a further two years as part of the budget, which it estimates will save the industry $111 million by June 2028.
The move follows announced restrictions on gambling advertising, which are expected to impact the profitability of many media companies.
Communications Minister Anika Wells said the changes eased financial pressure on the sector and helped ensure communities had access to free television and radio.
