Federal Budget 

“This is a responsible Budget that is right for the times and readies us for the future” stated Treasurer Jim Chalmers when delivering last night’s first Labor Government budget in over a decade.

This budget offers some cost-of-living relief, a stronger economy & responsible budget repair.  Some points include

  • cheaper childcare, expanding paid parental leave, reducing co-payment for the PBS and a number of affordable housing initiatives.  However, the low-and-middle income tax off-set will be phased out.
  • Offsetting additional Government revenue (due to high employment and record commodity prices) against Government debt.  The deficit forecast for 2022–23 is $36.9 billion – an improvement of $41.1 billion.
  • Increase fee-free TAFE and university places to skill up the workforce.  Additional spending on renewable energy.  Establishing a National Reconstruction Fund to develop Australian Industry and additional investment in transport infrastructure and NBN.
  • Cuts to Government spending and extending compliance programs for tax avoidance, shadow economy and personal income tax, raising $3.7 billion over 4 years.  Also increasing a multinational tax integrity package.

Overall, forecasts for this financial year will see the economy grow by 3.5% before slowing to 1.5% in 2023/24, Unemployment will remain low but will rise to 4.5% in 2023/24, inflation to peak at 7.75% this year and drop to 3.5% in 2023/24

For further information regarding the Federal Budget and how it affects you and your business, please click on the below link or call your ProYou trusted advisor on 02 9064 1300.

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