Sydney Times

Budget 2022 BUSINESS NEWS Business NSW NEWS & ANALYSIS

FEDERAL BUDGET-Analysis by BUSINESS NSW

Written by News Aggregator

FEDERAL BUDGET-Analysis by BUSINESS NSW

FEDERAL BUDGET
2022 – 2023

BUSINESS ANALYSIS

OVERVIEW

The Pre-Election Budget: The Federal Treasurer has handed down the Budget for 2022-23, with a focus on cost-of-living relief, job creation and skills development. The fiscal deficit is estimated to reach $78 billion (down from $98.9 billion estimated just 3 months ago) or 3.4 per cent of GDP.

The fourth Frydenberg Budget benefits from improved commodity prices and tax receipts combined with record-low unemployment and a significantly reduced welfare bill to achieve this improved bottom line – over the 5-year forward estimates $103.6 billion better off than a year ago. The government seeks to walk a fine line between compensating consumers and fuelling inflationary pressures in the economy which are already confronting business.

  • Compensation for inflation: To compensate businesses and families for the higher operation and living costs, the Budget includes a temporary and targeted cost of living package:
    • Fuel Excise cut in half for 6 months estimated to save 22.1 cents a litre.
    • A one-off $420 cost of living tax offset for more than 10 million low- and middle-income earners boosting the spending power of consumers.
    • A one-off $250 Cost of Living Payment for pensioners, carers, veterans, job seekers, eligible self-funded retirees, and concession cardholders.
  • Small business productivity and security: to boost investment in skills and new technology the government has announced:
    • $120 tax deduction for every $100 spent on training employees.
    • $120 tax deduction for every hundred dollars spent on digital technologies such as cloud computing, e-invoicing, cyber security and web design.
    • Supporting investments of up to $100,000 per year.
  • A busy infrastructure pipeline: The Budget includes $17.9 billion worth of new infrastructure projects nationwide, including 7 priority gas infrastructure projects. NSW gains the $1 billion contribution to a Sydney to Newcastle rail upgrade.
  • Support for Flood-affected communities: Total support to families, small business, local governments and local communities to exceed $6 billion.
  • Defence and National Security: Prioritised and strengthened with a $270 billion defence capability plan supporting 100,000 jobs, and a new 10-year $9.9 billion investment in Australia’s offensive and defensive cyber capabilities.
  • Reform policy outlook: With an election due within weeks, this is a steady-as-she-goes budget that seeks to support demand in the economy without fuelling inflation. Much-needed generational tax reform, major fiscal repair or reform to the Federation will have to wait for the next budget and the next term of the Australian Parliament. This is a budget that supports economic recovery, avoids austerity while declaring emergency measures have come to an end, and remains cautious when it comes to reform.

.

Your Business NSW team
Business Commerce
LinkedIn Twitter FaceBook

About the author

News Aggregator

error: Content is protected !!