The 2024 federal budget, announced last night by Treasurer Jim Chalmers, includes several incentives that will likely be welcomed by many Australian households, such as tax cuts, assistance with power bills, and rental payments. At the same time, the government aims to manage and reduce inflation to within the Reserve Bank’s target range of 2%to 3% by the time of the next election in 2025.
Chalmers' pledge is politically ambitious, particularly as many mortgage holders are eagerly awaiting a potential interest rate cut in the 2nd half of this year.
While Chalmers' strategy seems promising, some argue that his generosity with tax cuts and assistance programs could actually slow down the rate at which inflation decreases, making it challenging in achieving the RBA’s objectives.
However, with an election looming next year, Chalmers must balance the needs of Australians with the need to secure votes, all while attempting to demonstrate social and economic responsibility.
For a summary of the Winners and Losers from the 2024 Federal Budget please refer to the link below courtesy of the ABC news:
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