Federal Budget 2024: Government defends cost-of-living payments ...

Thanks for joining us for day 2 of our budget live blog. Join us tomorrow as we continue unpacking what the budget means for you and the nation.

To get you caught up on the day's events, here's some key moments from today:

You can catch up on all those developments and more below, or download the ABC News app and subscribe to our range of news alerts for the latest news.

And just to prove the news never stops, I'll leave you with this story from political reporter Matthew Doran, which has just gone live:

It may seem far off to us, but last night's budget also put aside some funding for Antarctic research.

$370 million was promised over nine years to "stabilise and then replace" the ageing infrastructure on the Macquarie Island research station.

The centre is located in the Southern Ocean, halfway between mainland Australia and the Antarctic.

The government has also committed an extra $17 million over two years for Australia's icebreaker, RSV Nuyinya to undertake dedicated marine science voyages.

The trips will include a research mission to the Denman Glacier in Antarctica and a visit to Heard and McDonald Islands in the sub-Antarctic.

The federal budget includes measures to reduce student debt and provide payments to students doing practical placements for teaching, nursing, midwifery and social work courses.

CEO of Universities Australia, Luke Sheehy says the federal government has been listening to their conerns.

"We think in a cost of living crisis young people are really having a difficult time, so we've been asking the government to prioritise cost of living relief relief for students and that's what we're saying in the budget."

Here's exactly what they're getting:

$350.3 million to expand access to courses helping students qualify and better prepare for university.

 $239.7 million to change HECS indexation so annual indexation is applied on either the lower amount of the consumer price index (CPI) or Wage Price Index (WPI).

Reporting by Stephanie Boltje

The national leadership body for Aboriginal health, NACCHO, says structural reform is still needed to make meaningful change to improve the health of First Nations people – despite some improvements in last night's budget.

NACCHO has welcomed the following announcements:

But the acting CEO of NACCHO, Dr Dawn Casey, says there is a health funding gap of $4.4 billion for First Nations Australians that needs to be bridged.

The Commonwealth's share of that gap is $2.6 billion," she said.

"So, we have a simple challenge to work through with the government: Let's agree on a plan to close the funding gap, if we are ever to close the health gap."

Annabel Crabb wonders if the federal government is really getting bang for its buck in its deal with WA:

Probably the most shocking figure in the budget is found on page 3 of Budget Paper 3, commonly overlooked because of its tedious subtitle: Federal Financial Relations.

In an information box entitled Fiscal Pressures Across The Federation, the government finally confirms just how much its capitulation to the prolonged tantrums of the WA government over GST distribution is going to cost.

WA chucked a mighty one in 2017 when its share of the GST got down to a lowly 33 cents in the dollar, compared to NSW on 88 cents.

Then-treasurer Scott Morrison asked the Productivity Commission to investigate, and was advised WA should get a higher share at the expense of other states.

SA then chucked its own tanty, and Morrison asked the Productivity Commission to look at the matter again.

Eventually, the federal government agreed to compensate WA — not from GST revenue, but from the Commonwealth's own pocket. It's called the GST No Worse Off Guarantee, or "NoWO".

NoWO worked out almost immediately to be a preposterously bad deal for the federal government. Initially estimated at about $9 billion over 10 years, it quickly blew out.

But so crucial is WA to the next election that current treasurer, Jim Chalmers, made a solemn pledge to extend the arrangement for a further three years.

The opposition, meanwhile, will not advocate any change to the arrangement because it needs to win seats in WA, too.

Budget Paper 3 quietly confirms the cost of this bipartisan madness: Over 10 years, the GST deal will cost $52.9 billion dollars.

Would it be cheaper just to give every single elector in these seats a million-dollar Westfield voucher? Too inflationary?

Isobel Roe has the latest out of New South Wales 

NSW Premier Chris Minns says there is some good news for the state from last night's federal budget — despite a major loss in GST revenue.

Last year's budget papers showed NSW was set to receive $27.7 billion in GST revenue for the 2024-25 financial year. That figure has been revised down to $25.8 billion.

Mr Minns said he was still hopeful of clawing money back from the federal government, following the cut.

"I'm hopeful that we can continue discussions with them about some of the outstanding issues that we have," he said.

"Whether it's health funding, education or the GST. Because Albo did listen to us about critical road infrastructure in Western Sydney."

The budget includes another $1.9 billion for Western Sydney roads, which the premier says is important when it comes to the opening of the Western Sydney Airport.

Victorian Treasurer Tim Pallas says the federal budget is a step in the right direction for the state, but Victoria hasn't received as much funding as he would have liked.

Last night's budget included $5 billion in new announcements for Victoria, which totals 30 per cent of new funding.

Mr Pallas says that's a dramatic improvement on the past.

Between significant revisions to the National Disability Insurance Scheme (NDIS) and new employment initiatives, disability was a key part of this year's federal budget.

But now that  the dust has settled, the standout questions, particularly regarding the NDIS, don't centre on the specifics that were in the papers, they're about those that weren't.

Here's everything you need to know from the Specialist Reporting Team's Evan Young and national disability affairs reporter Nas Campanella. 

National health reporter Elise Worthington reports:

The budget contains $588.5 million to establish a "national low-intensity digital mental health service" for people with mild mental health concerns.

Exactly what that will look like and how it will work is TBC.

The service will be free to access, and you won't need a referral, but it won’t be operational until 2026 – when the government expects 150,000 people to use it yearly.

The budget includes $29.9 million to expand free community-based mental health services under the "Head to Health" banner, for those with moderate to severe mental health issues.

The sector, however, expected more funding for adults with complex mental health needs.

For those with severe and complex needs, there's $71.7 million to provide wraparound care in primary care settings, such as GPs and pharmacists.

Psychiatrists have called the lack of funding to grow the mental health workforce "extremely disappointing", with the RANZCP saying there's not enough funding or specialists to treat complex chronic and severe mental illnesses.

Western Australia's Anglicare head has criticised the budget's lack of safe and affordable housing funding.

One of the key cost-of-living centrepieces was its $300 rebate for household electricity bills.

But Mark Glasson from Anglicare WA has described that measure as a "lazy policy".

"In Australia at the moment we have 2 million people who have assets greater than a million dollars," he told ABC Radio Perth.

"So we have 2 million millionaires in this country.

"They all got a $300 gift last night from the federal government.

"At the same time the people who actually need that money aren't getting what they need."

Aboriginal legal services say the budget has failed to deliver meaningful relief, which could result in a loss of representation. 

The Aboriginal and Torres Strait Islander Legal Services (ATSILS) in each state and territory called for a $229 million injection in the Budget for critical services but received $15 million for this year. 

"We are angry and distressed that our funding crisis will continue for another year," said Nerita Waight, ATSILS deputy chair.

"Further service freezes would have dire consequences for Aboriginal and Torres Strait Islander people.

"When culturally safe, accessible legal help isn't available, the result is more children taken from their families, more family violence, more unjust imprisonment, and the very real possibility of more deaths in custody."

Meanwhile, the Family Violence Prevention Legal Services (FVPLS) received $8.6m to support First Nations women, children and their communities affected by domestic, family, and sexual violence. 

“While the funds will bring welcome relief to our services providers, the announcement is just the start of what our services need to ensure violence against First Nations women and children can be prevented,” NFVPLS Forum CEO Kerry Staines said in a statement. 

The government says it is still considering the findings of a review into how legal assistance services are funded.

Reporting by Joshua Boscaini

South Australian treasurer Stephen Mullighan has welcomed the federal government's commitment to reinstate $220 million to infrastructure upgrades in the Adelaide Hills.

The federal budget also allocated $120 million for the Mount Barker and Verdun Interchange Upgrades and $100 million for the South Eastern Freeway Upgrade.

However, as the ABC revealed earlier this week, the federal government hasn't committed additional money for the stalled Tarrkarri Centre for First Nations Cultures.

"I think that reflects that those conversations have not concluded between the state and the Commonwealth governments," Mr Mullighan told ABC Radio Adelaide.

"They also haven't concluded with other third party or private sector potential contributors as well."

Work at the old Royal Adelaide Hospital site was put on hold in October 2022 following a $50 million cost blowout and state government concerns the building's design was "substandard".

South Australia asked the federal government to boost its $85 million funding contribution.

Senator Sarah Hanson-Young is up next, and she's keeping up the Greens' attack on the government for kicking the can down the road on renters, childcare costs and the environment.

She points out the government has maintained capital gains tax concessions and negative gearing, while restricting the 10 per cent rent assistance boost to the lowest-income renters — which she says is essentially saying "If you're a renter, we know it's tough, but you sort it out yourself."

Asked if the Greens will back the measures contained in the Future Made in Australia program, the senator pivots to the level of fossil fuel funding in the rest of the budget.

"Only last week we had [Resources Minister] Madeleine King out declaring that the government had a future gas strategy, and this week they're so desperate to not use the word gas," she says.

"Meanwhile billions of dollars are still in the budget for helping the fossil fuel industry."

We'll call that a maybe.

Investor Group on Climate Change chief executive Rebecca Mikula-Wright tells Afternoon Briefing criticism won't stop production subsidies being passed.

"I think there's a lot of new industries that are coming up," she says. 

"That's why we do need the support from the government for these new industries.

"I've been to a new battery factory in the Hunter Valley, for example, and seen some of these companies for myself and the new jobs that creates."

Asked whether the 10 per cent increase in rent assistance is all the relief incoming for the foreseeable future, Ms Smith says the government is "focused on building supply".

"This budget has $6 billion in additional spending for housing, that takes our investment up to $32 billion," she says.

"We're doing that because pressures relating to housing, whether you're a renter, whether you're an aspiring homeowner or a homeowner with a mortgage, is a huge pressure on many, many Australians right now."

Afternoon Briefing's panel today includes Labor senator Marielle Smith and NSW Liberal senator Andrew Bragg.

Asked whether the government is attempting to make up for those hit hard by stage 3 tax cuts with its $300 energy bill relief, Ms Smith says:

"It's recognition that a lot of Australians are feeling the pressure of their energy costs at the moment.

"And this was an efficient way to provide them support which isn't inflationary."

Mr Bragg says the energy rebate shows "lazy judgement" by the government.

"This handout is going to go to everyone, and there will be some perverse out-workings like the one you just described," he says.

He's referencing a point we've touched on earlier — the idea someone who owns multiple properties would be able to access multiple support payments.

National Disability Insurance Scheme Minister Bill Shorten says the scheme is growing at "nearly 20 per cent",  a number he's labelled "not realistic".

"We believe, with two practical changes, we can head towards growth at 8 per cent rather than nearly 20 per cent," he says.

"What's happening is some participants are being encouraged to spend all their money within four or five months, then there's an automatic top-up.

"The automatic assumption is that if you spend all your money, you can be topped up.

"It's not the way the world works and it doesn't serve the best interests of people with disability."

The second change, he says, is hiring trained assessors to look at a person's overall needs to build an individual plan.

Next up is Nationals MP and former resources minister Keith Pitt, who is once more talking Future Made in Australia.

"It's a security issue, not an economic one," he says. 

"That is because there's a monopoly around China. They are the producer. They are pretty much the only buyer.

"And if you step out of that supply chain — well, China simply stops buying your product.

"If we want to have new supply chains for critical minerals — and we need them — we need to build those supply chains with like-minded democracies." 

Mr Pitt has also dismissed a question on whether the Liberal party moved too quickly to dismiss the measures that make up Future Made.

"The point I'm making is, we would agree on intent, as I've said," he says.

"But the vehicle may not be one that we think works. The outcome here is critical for Australia." 

If you've been watching Andrew Leigh and feel like you need a primer on the Future Made in Australia program, business reporter David Chau breaks down what led to the program and how it will work in the video below:

TL;DR: The government had FOMO after watching the US experience a manufacturing boom as a result of the Inflation Reducation Act, and now wants the private sector to invest in green jobs and other industries that will boost our national security.

Asked whether the government has benchmarks for success, Mr Leigh says they're looking at an increase "in the renewable share in the grid".

"That's a big marker of Australia moving down that pathway of being a renewable energy superpower," he says.

"We've got the big increases in offshore wind ... we're seeing solar wind farms in place.

"[There are] improvements in the grid and battery storage alongside it.

"It's an exciting transformation and shows that you don't have to choose between economic growth and doing the right thing for the planet."