6AM Budget 2023 Breakdown

The Albanese Government’s second Budget has been handed down and 6AM is pleased to provide a summary breakdown of the key takeaways that will impact, the health and wellbeing and small business sectors.

This year’s Budget clearly has the health of Australians as a top priority. With an ageing population,  and more people living longer in the community with multiple chronic diseases such as cancer, diabetes and heart disease, along with rising rates of mental illness, the Australian healthcare system is under great pressure. The RACGP’s 2022 General Practice: Health of the Nation report, underlined the many issues facing GPs – burnout, underfunding of Medicare, increasing numbers of GPs retiring or not wanting to enter the profession at all, and unsustainable workloads. The Government has signalled a strong commitment in this year’s Budget to address these.

Better health access for more Australians

The Government made a significant commitment ($3.5bn) in the Budget to ensuring more Australians can access GPs following the bulk-billing Medicare rebate crisis, tripling the bulk-billing incentives. This will enable GPs to provide more consultations, especially for those in regional and remote areas where the crisis has hit hardest. As a result, the Government calculates 11.6 million more Australians will be able to access more medical assistance from this measure.

Cost-of-medicines has been a key driver of one of the Budget’s biggest saving measures of $1.2 billion over five years, with people able to save up to $180 a year on their medicines as a result of Government changes to the PBS. This will allow patients a 60-day supply of medications on a single prescription. However, this change, which begins in September, has attracted attention from the Pharmacy sector concerned that 60-Day prescribing will impact on medication supplies and put the health of some customers at risk if there are shortages in supply. The Government has also allocated $79.5 million to help regional pharmacies recover some of the losses in dispensing income.

Beyond Medicare directly, there is also $263.8 million over four years for a new lung cancer screening program, $141.2 million to expand the Tackling Indigenous smoking program, $63.4 million for programs to prevent the uptake and reduce smoking and vaping, along with $29.5 million to enhance quitting programs.

SME business to benefit

Efforts by the Government to recognise the vital role of small and medium business were realised in the Budget, beginning with an ease in cost-of-living and cost-of-running-a business pressures. This includes $14 billion towards a rent relief package, energy bill relief, as well as a budgetary measures for cheaper early childhood education, which will arguably leave people with more money in their pockets, which may flow to business. Also, an increase of 300,000 fee-free TAFE places could assist businesses in future, as part of a $3.7 billion National Skills Agreement.

Small businesses will benefit from an energy incentive and help to adopt and adapt to digital technology. Supporting green industries including AI could also assist businesses in the future. Direct energy bill relief is on the way for as many as one million small businesses. In addition, $1.5 billion over the next two years will go towards targeted energy bill relief to eligible households and small business customers. Treasurer Jim Chalmers says payments will provide up to $500 in direct bill support per customer. The federal government will also launch a refreshed instant asset write-off scheme for purchases up to $20,000.