It’s Budget time - how does it affect your own financial planning?

financial budget

High commodity prices and a strong jobs market mean the 2023-24 Federal Budget is forecast to be in surplus – a modest $4 billion – for the first time in 15 years.

But while the predicted surplus was welcome news from Federal Treasurer Jim Chalmers, he concedes Australians are living through “difficult times” and that his second budget is therefore “carefully calibrated” to help reduce inflation and prevent the rising costs that are impacting family finances.

As such, Dr Chalmers has promised billions of dollars for cost-of-living relief in the form of:

  • energy subsidies
  • cheaper medicines and child care
  • healthcare reforms.

Those of us in the financial advice community were glued to the Budget announcements on Tuesday night, with the aim of keeping our clients up-to-date with any new investment opportunities and tax changes relevant to their portfolios.

The team at Poole Advisory were unsurprised at the budget focus, with Dr Chalmers having already indicated that his priority would be “responsible, targeted relief”. The result was a $15 billion package for struggling families and small businesses, while also providing incentives towards Australia’s green energy future.

He said increased expenditure will be offset by extra revenue measures, like:

  • $3.3 billion in higher tobacco excise
  • $2.4 billion in higher taxes on oil and gas producers
  • the decision in February to collect $3.2 billion from increased taxes on superannuation accounts with balances over $3 million.

It’s shaping up to be a challenging 2023-24, with predicted GDP growth halving to 1.5% and unemployment rising. The government expects the consumer price index to rise 3.25% – slightly below the 3.5% previously forecast.

Nevertheless, real wage growth is expected to return in 2023-24, as inflation comes under control and is forecast to be at 3.25% before moderating to 2.75% in 2024-25, returning to the RBA’s target band.

Here are some of the key 2023-24 Budget takeaways:

  • $3.5 billion in incentives to doctors to bulk bill more patients
  • $4.7 billion for cheaper child care
  • Extra tax write-offs for electrification and energy efficiency investments for small businesses
  • Increases in the instant asset write-off threshold to improve cash flow and reduce compliance for small businesses
  • More for JobSeeker and other welfare payments, and rent relief for more than a million people
  • $11.3 billion to fund a 15% increase in award wages to aged care workers
  • A $23.4 million program to help small businesses protect against cyber threats by training in-house cyber wardens
  • 300,000 new fee-free TAFE places to train Australians in critical and emerging sectors
  • $392 million assigned to launch the Industry Growth Program.

Meanwhile, in some good news for many of our investors at Poole Advisory, we’re energised by the Treasurer’s renewables initiatives and the set-up of the Net Zero Authority. With the government aiming to make Australia a “renewable energy superpower”, more funding and safeguard mechanisms will be allocated to assist green investors wishing to support clean energy industries, including $4 billion allocated for renewable energy investments.

As financial advisors, we’re also interested to see this budget will provide $101.2 million to support businesses integrating quantum and artificial intelligence (AI) technologies into their workplaces to increase trade competitiveness.


Financial planning

What’s in the 2023-24 Budget for you?



Under the government’s $4.5 billion Child Care Subsidy rates from 1 July, a family – earning around $120,000 a year and paying for child care three days a week – will save around $1,700 per year. Some form of subsidy is available for 96% of families with a child in care that earn less than $530,000.

Single parents will receive welfare benefits until their youngest child turns 14, instead of the current age of 8 – and $1.9 billion is allocated over five years to give 57,000 families an extra $176.90 per fortnight.


As part of the $3 billion provided in the Energy Bill Relief Fund, eligible households will receive up to $500, while small businesses will be paid up to $650 to assist with price rises over the next two years.
The Small Business Energy Incentive will help SMEs carry out energy-saving upgrades to reduce their power bills.

To scale up development of Australia’s renewable hydrogen industry, hydrogen energy production will receive $2 billion in the Hydrogen Headstart program.


Administered by the Clean Energy Finance Corporation (CEFC), households will be offered low-interest loans to improve the energy efficiency of their homes, including upgrades like double-glazing or adding solar panels.


You can now buy your first house with your mate. The government is expanding eligibility for the First Home Guarantee and Regional First Home Buyer Guarantee so “any two borrowers” can jointly apply.


In a $3.5 billion boost, doctors will receive triple the dollar incentive to bulk bill patients. There will be $2.2 billion over five years provided for cheaper medicines on the pharmaceutical benefits scheme (PBS), as well as $358.5 million to fund 58 Medicare Urgent Care Clinics.


The government will improve cash flow and reduce compliance for small businesses with turnover up to $10 million by temporarily increasing the instant asset write-off threshold to $20,000, from 1 July 2023 until 30 June 2024.

$392 million will help small businesses and startups commercialise their concepts and expand their operations through the Industry Growth Program.


$4.9 billion over five years will increase the base rate for JobSeeker, Austudy and the Youth Allowance by $40/fortnight. Over 55s on JobSeeker will also see an increase of $40 extra a fortnight.

Over the next four years Labor will outlay $2.7 billion to increase the maximum rate of rent assistance by up to $31 per fortnight.

So how is our national outlook shaping up?

In his speech to the National Press Club on Wednesday, Dr Chalmers said, “inflation is still with us and big structural pressures on the budget remain”.

But he insisted the 2023-24 Federal Budget is not only designed to “see us through but also to look beyond”.

“This Budget was all about helping people doing it tough, broadening opportunities for more people, and investing in the future,” he tweeted.

What should you be doing about your financial future?

After every budget, we advise our clients at Poole Advisory to touch base so we can revise and tweak their portfolios to suit the new economic landscape.

It’s an opportunity to evaluate our clients current financial position and implement meaningful and appropriate strategies to help them continue to achieve their life goals.

So get in touch with Poole Advisory and make an appointment to revisit your financial plan. Or book a complimentary introduction consultation with our chief advisor Anthony Poole today.

Compliance Disclaimer: 

This information contains general advice only, that is, advice which does not take into account your needs, objectives, or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial or credit advice that addresses your specific needs and situation before making investment or borrowing decisions. Taxation information is based on our interpretation of the relevant laws as at 1 July 2018. While every care has been taken in the preparation of this information, Prosperitas Partners Pty Ltd does not guarantee the accuracy or completeness of the information. The case studies are hypothetical, for illustration purposes only and are not based on actual returns

Poole Advisory Pty Ltd ABN 15 642 040 604 is a Corporate Authorised Representative (No. 001282603) of Prosperitas Partners Pty Ltd ABN 30 662 654 453 AFSL 544 917

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