Australia is facing an uncertain global economic environment and a changing world. Global challenges, high but moderating inflation and higher interest rates have contributed to cost-of-living pressures and slower growth.

While many Australians remain under pressure, our economy is better placed than most to handle these challenges. This government's responsible economic management has helped ease inflationary and budget pressures. Though inflation is still too high, it is now less than half its peak and almost half of what it was around the middle of 2022. Unemployment is near a 50-year low. Real wages growth has returned. Australia recorded the second strongest budget balance among G20 countries. Australia is uniquely placed to maximise opportunities from changes in the global economy, including the net zero transformation.

The Budget forecasts a second surplus in 2023–24, representing the first back-to-back surplus in nearly two decades, lower debt every year over the forward estimates and lower inflation, which is now expected to be back in the RBA's target band sooner.

This Budget responds to the challenges of today and lays the foundation for future prosperity by:

• easing cost-of-living pressures
• building more homes for Australians
• investing in a Future Made in Australia
• strengthening Medicare and the care economy
• broadening opportunity and advancing equality

This Budget aims to strike the right balance between keeping pressure off inflation, delivering cost-of-living relief, supporting sustainable economic growth and strengthening public finances.