Received

Treasurer Jim Chalmers has rejected concerns his cost of living budget will fuel inflation and trigger more interest rate rises.

His second budget juggled several priorities, namely keeping a lid on inflation while offering some cost of living support to those most in need.

Independent economist Chris Richardson said the budget lacked the hard decisions needed to let the central bank keep interest rates on hold, and would pump money into the economy.

"I had thought after the surprise rate rise from the Reserve Bank last month that they were done and dusted. I'm less clear now that that's the case," he said.

But Treasurer Jim Chalmers insisted his budget would not push up prices and the hip pocket help had been carefully calibrated so as not to drive inflation.

"The restraint we've shown, and the investments in the supply side of the economy, and the way we've targeted and staged our cost of living package, is because inflation is the biggest challenge in our economy," he said.

Shadow treasurer Angus Taylor said the government has delivered "typical big-spending, big-taxing Labor budget".

"We needed a budget that reduces inflation and reins in spending to combat the cost of living crisis facing all Australians," Mr Taylor said.

"Instead, this budget makes life harder for Australians."

Commonwealth Bank of Australia chief economist Stephen Halmarick said the budget would not jeopardise its forecasts of inflation returning to the RBA's target range by mid-2024.

"The move to surplus in 2022/23 represents a fiscal contraction that is helpful in moderating the inflation pulse through the economy," he said.

"But the move back to deficit in 2023/24 represents a loosening of fiscal policy."

Some interest groups also raised concerns about the inflationary impact of the budget, including the Master Builders Association and the Australian Taxpayers' Alliance.

© AAP 2023

Telecommunications companies have been warned to improve customer service after a jump in complaints about internet services and a high number of mobile phones woes.

Some 17,777 complaints were made to the Telecommunications Industry Ombudsman from January to March 2023, similar to the previous reporting period.

Almost half were about mobile phones while about a third related to internet services, representing a 8.5 per cent jump since the end of 2022.

The ombudsman said complaints about getting connected to the National Broadband Network or problems with service quality rose 13 per cent.

There was also a 32 per cent jump in complaints about dropouts and intermittent service across both NBN and non-NBN networks.

Overall, there was a drop in complaints that remained unresolved after the ombudsman took action and total complaints were down compared to a year ago.

More than 400 customers had concerns about financial hardship with three quarters reaching out about their mobile phones.

Ombudsman Cynthia Gebert took aim at the "dramatic increase" in problems with internet services and said the proportion of complaints about mobiles was too high.

"I encourage the telcos to keep working on their customer service to ensure that these problems get resolved before people need help from my office," she said.

A NBN spokeswoman highlighted complaints about faults and connection were down 49 per cent on the same quarter last year.

Improving customer experience was a priority for the network, the spokeswoman said.

"We encourage any customer who is experiencing issues with their service to contact their internet provider in the first instance and we will work with them to resolve any issues," she said in a statement to AAP.

© AAP 2023

Businesses struggling to make ends meet will be able to claim tens of thousands of dollars in tax incentives to drive down power bills and boost productivity.

Small business minister Julie Collins says they are "the lifeblood of our economy" and hopes the new measures will provide them with targeted, responsible support without adding to inflation.

Energy bill relief and tax asset write-offs will help tackle immediate challenges while investments in cyber security and cutting red tape aim to set up small businesses in the long term, she says.

But Australian Industry Group chief executive Innes Willox said the budget missed the mark and failed to set up the economy for long-term success.

"The government's chosen to go down a path of largely one-off sugar hits and band-aids aimed at households rather than trying to address issues around productivity investment, job creation and growth," he told AAP.

While he welcomed strengthening the skilled migration system, Mr Willox was disappointed by significant cuts to business development policies, including the entrepreneurs' program for small business growth and the export market development grant program.

The head of the Australian Chamber of Commerce and Industry, Andrew McKellar, praised the government's investment in skills and training.

While tangible progress was made in the process of budget repair, a lot of heavy lifting remains to be done, he told reporters.

In terms of immediate relief, one million small businesses will be eligible for up to $650 in power bill rebates from July, as part of a $3 billion relief package split with the states and territories.

The package will also be available to five million households, which can claim up to $500 in relief.

The entire energy relief plan, which includes the bill support and price caps on fossil fuels, is expected to shave 25 per cent off retail electricity prices and 16 per cent off gas prices.

A one year increase to the instant asset write-off threshold will enable businesses with a turnover of up to $10 million to deduct an extra $20,000 off their taxes.

Additional incentives will encourage small businesses to adopt new technologies and guard against the growing threat of cyber attacks.

Up to 3.8 million small and medium-sized businesses will be able to tap into tax deductions on purchases that bring down electricity prices and reduce emissions for one year from July 1.

The $310 million investment will allow businesses to deduct up to $20,000 extra per item to encourage upgrades to more efficient goods and electrification of assets, such as energy-efficient fridges and electric heating systems.

A new $392 million program to support small businesses to develop new products and services and $23.4 million in cyber resilience will further incentivise innovation.

The money will help train in-house "cyber wardens" to guard against security threats after several high-profile data breaches targeted Australian companies, including Medibank, Optus and Latitude Finance.

Red tape is also in the firing line, with the government promising to reduce the time small businesses spend doing taxes.

Five additional tax clinics will be set up starting in 2025 to help small businesses without easy access to professional tax assistance.

© AAP 2023