What to Expect and How It Affects You
The federal government is releasing its budget tonight, and while it may seem like just another political event, it will directly or indirectly impact your finances. Here's a breakdown of what to expect and what it could mean for you.
What is the federal budget?
In simple terms, it's the government's plan for how it will collect and spend money in the coming financial year. This plan affects your financial situation in various ways, making it important to understand its key points.
The government outlines this plan in a set of documents called the budget papers, which will be available for public viewing tonight. Before their release, the treasurer delivers a speech in parliament summarizing the plan.
Student debt changes: The government proposes changes to how student loans are indexed, potentially reducing debt increases and offering refunds for some students.
While details are still unclear, the government promises some form of cost-of-living relief.
The stage three tax cuts will take effect in July, slightly adjusting Australia's tax brackets and rates, benefiting both lower and higher-income earners.
The government is expected to announce a $9.3 billion surplus for the current financial year.
How does the federal budget impact you?
The budget shapes the economy, impacting everyone, whether you're a taxpayer or not. Specific measures will affect certain groups more than others. Our "winners and losers" list, published later tonight, will provide a quick overview of who benefits the most from the new plan.
When is the new financial year?
The new financial year begins in about seven weeks.
You can submit your tax return on July 1, but you have over 17 weeks to do so if you're doing it yourself.
If you're using a tax agent, book your appointment before October 31.
Stay tuned for further updates and analysis of the federal budget later tonight.