An additional $33 billion (US$21 billion) will go to pension and other welfare payments in the Australian Commonwealth Budget. Inflation is the main cause of rising welfare costs.
Labor Chancellor Jim Chalmers said the government will need to find billions of dollars in additional funding as welfare payments are indexed to inflation.
“One of the pressures on the budget is to make sure we find room to index so that people on pensions and payments can get a little help keeping up with the cost of living spikes twice a year. It’s about making sure it’s available,” says Chalmers. told ABC News.
He said about a third of the additional $33 billion will go to senior pensions and the remaining third to pay job seekers.
The Albanian government has submitted its first budget against the backdrop of soaring inflation expected to peak at 7.75%.
The recent series of floods is projected to keep inflation going longer by pushing up production costs.
Labor Prime Minister Anthony Albanese said high inflation had led to the most rapid and sustained monetary tightening in decades.
He said this puts a lot of pressure on household budgets, but the budget needs to stick to modest and targeted cost-of-living cuts that don’t fuel inflation.
“The right response to that in Tuesday night’s budget is a responsible budget, a budget that doesn’t add to inflationary pressures,” he told reporters in Perth.
Shadow treasurer Angus Taylor said the government has given up on managing cost of living pressures.
“They are saying they will cut 150,000 jobs. They seem to have given up on raising real wages this election cycle,” he told ABC News.
“It’s incredibly disappointing,” he said.
The Albanian government has also released details on its “family-friendly” budget, including plans to extend the paid parental leave scheme from 20 to 26 weeks.
Similarly, the new rule will open up the federal extended parental payment system to more families.
Beginning next July, parents seeking access to the scheme will be assessed on a dual income basis, subject to a combined $350,000 (US$222,500) cutoff.
Parents have previously been assessed for personal income.
In the last election, the former coalition government also pledged to change income standards.
The Albanian government’s new scheme allows parents to take leave at the same time, and the rules will be adjusted to make the scheme more accessible for parents whose partners do not meet the residency requirements.
The change is expected to benefit more than 180,000 families nationwide.
The government will invest $12.4 million (US$7.9 million) in playgroups and toy libraries as part of its budget support for families.
Labor has also pledged to increase federal childcare subsidies for most families.
On Sunday, the government pledged $50 million (US$31.8 million) to modernize a zinc smelter in Hobart and worked with state governments to commit another $5,000 to fund Western Australia’s Aboriginal Cultural Center. promised a million dollars.