Business Daily Media

Men's Weekly

.

cuts, spends, and everything you need to know at a glance

  • Written by Michael Hopkin, Deputy Chief of Staff, The Conversation
cuts, spends, and everything you need to know at a glance

With rising inflation, a war in Europe affecting global fuel costs, and ongoing supply strain issues, this year’s budget is shaped not just by the upcoming election but a growing cry in the community about the cost of living.

But despite some significant multi-billion dollar spends within the next six months, the deficit is predicted to shrink considerably from last year (and the shock of 2020) to just $79.8 billion – largely due to factors out of the government’s control.

While GDP surged as we began to see a way out of the COVID tunnel, the government forecasts that this will slowly consolidate to around about our pre-pandemic levels, sitting at 2.5% for the remainder of the forward estimates.

Unlike GDP, unemployment is forecast to head further south – and remain there for the majority of the next four years.

And the predicted further increase in overall employment has flown on effects.

Despite an international climate of increasing inflation, and years of wage stagnation, the government is optimistic that the wage price index will overtake the consumer price index by the 2023-24 budget.

Despite a clear explosion in spending in this election year (and amid those cost of living woes in the electorate), the government expects to rein in payments in the coming years, as receipts consolidate.

Josh Frydenberg noted in his address to the Press Gallery that the budget now forecasts gross debt to peak four years earlier than in previous estimates – though this is still a far cry from the “Back in Black” predictions of his first budget in 2019.

So what are the major spends – and few cuts – of this big spending election budget?

While a number of them – like the fuel excise cut and almost no mention of climate change as NSW and Queensland recover from another disastrous summer – are definitely against the recommendations of Australia’s leading economists[1], it remains to be seen how they will affect the election.

References

  1. ^ Australia’s leading economists (theconversation.com)

Authors: Michael Hopkin, Deputy Chief of Staff, The Conversation

Read more https://theconversation.com/a-cost-of-living-budget-cuts-spends-and-everything-you-need-to-know-at-a-glance-180124

The quiet majority: why marketers need to cater to low intent shoppers

When shoppers are browsing online, whether for a new phone, holiday, or pair of shoes, they usually know exactly where they stand. Sometimes they’...

Lack of Salary Transparency is Costing Businesses Top Talent, Says Recruiters

As end-of-financial-year reviews approach, new research reveals a growing disconnect between Australian employers and employees on the issue of sa...

Sleep Soundly, Knowing Your People Are Paid Right: Navigating the Complexities of Modern Payroll

The Role of Modern Payroll Modern payroll systems are essential to any organization's financial infrastructure in today's rapidly evolving business...

Tariffs for dummies: Getting to grips with the business of exporting goods and services

It pays to understand how the international taxation system works before you start selling abroad. Take a glance at the business news just now an...

Deputy Unveils Enterprise-Grade Analytics+ to Power Smarter Workforce Decisions for Shift-Based Businesses

Deputy, the world’s leading workforce management platform for shift work, today announced the global launch of Deputy Analytics+, a next-generatio...

UNSW startup accelerator offers $200K to the next generation of Australian deeptech unicorns

UNSW Founders, Australia’s most recommended startup accelerator, has partnered with fund manager Luminary Partners to invest $200,000 each into 18...

Sell by LayBy