The key measures for cost of living in the 2022-23 Budget include a one-off $A250 payment to all concession card holders and welfare recipients - about $A1.5 billion that will quickly be spent in the economy.
There's also a one-off $A420 tax break for low to middle income earners which will encourage a little bit more spending too. The temporary fuel excise relief of A22c per litre for six months will drop petrol prices a little lower than it would otherwise be.
Housing affordability measures will also spur spending, with increased availability for first-home buyers to get into the market with a 5 per cent deposit. First-home buyers will also be able to put more money into their super and use that money for housing deposits as well.
ANZ Research is more optimistic about wages than budget forecasts which estimate wages will reach 3.25 per cent by next financial year.
Wage growth is forecast to be closer to 3.8 per cent in the same period. Similarly, the government has forecast unemployment to be higher - at 3.75 per cent - than ANZ Research’s 3.3 per cent.
Adelaide Timbrell is Senior Economist at ANZ