October 2022 Australian federal budget

Last updated

2022 (2022) Australian federal budget - October
2022–23 Australian Federal Budget - October
Coat of Arms of Australia.svg
Submitted to House of Representatives
Presented25 October 2022
Parliament 47th Parliament
Government Albanese government
Party Australian Labor Party
Treasurer Jim Chalmers
Total revenueA$607 billion [1]
Total expendituresA$650 billion [1]
SurplusA$22 billion [2]
Website budget.gov.au
‹  March 2022
2023›

The October 2022 Australian federal budget was the federal budget to fund government services and operations. The budget was presented to the House of Representatives by Treasurer Jim Chalmers on 25 October 2022. It was the first budget to be handed down by the Australian Labor Party since their election to government at the 2022 federal election. It was the second budget to be handed down in 2022, with the preceding budget being delivered in March by the prior government.

Contents

Background

The budget was handed down during a period of high inflation. The consumer price index had risen to 7.3% over the past year, the highest since June 1990. [3]

Before the budget was delivered the Treasurer was cautioning the state of the global economy. He warned our key trading partners faced the risk of recession. [4]

The budget featured a new set of well-being measures. [5] The initiative provides the framework that measures and reports on the quality of life for Australians, beyond the indicators of financial prosperity. [6] The plan is to introduce targets next year. [5]

Forecasts

Australia’s gross domestic product is expected to grow 3.25% this financial year, dropping to 1.5% in the following financial year. [7] This is the lowest since the early 1990s recession, aside for the drop in growth during the pandemic.

Revenues

Total government revenue is $644 billion this financial year. Government revenues were $57.3 billion better than last predicted in the March budget. [8] The cause is higher company taxes generated by resource exports. The increased price of energy is a windfall for energy exporters. [8]

$720 million is expected to be raised after a "crackdown on large companies using related-party debts to artificially reduce their local profits and tax bills". [9]

Income taxation

Indirect taxation


Non-taxation receipts


Memorandum

Expenses


Expenditure

The budget included a $6.2 billion plan to remove the limits to annual Child Care Subsidy (CCS) payments, effective from July 2022. [10] The subsidy would be offered to families earning up to $530,000 annually. [10] $531.6 million is being spent on government paid parental leave entitlements. [11] The entitlement will expand from 20 weeks to 26 weeks in 2026-27. [11]

$800 million has been allocated to spending on renewable energy projects. This includes cutting taxes on electric cars and building a national electric vehicle charging network and hydrogen refueling stations among other measures. [12]

Foreign aid to the Pacific is seeing a boost of $375 million, bringing the total to $900 million. [13]

$2.4 billion is to go towards improving internet speeds for 1.5 million homes and businesses on the National Broadband Network. [14]

The maximum general co-payment for Pharmaceutical Benefits Scheme scripts is being reduced from $42.50 to $30 at a cost of $200 million. [15]

$2.5 billion is to be spent over four years on improving aged care. Specifically funding is for an increase in the number of care minutes residents receive and the commitment to require aged care homes to have a registered nurse onsite 24/7 from 1 July 2023. [16]

$170 million has been allocated to women’s safety. 500 frontline workers will support women and children experiencing family, domestic and sexual violence. [17]

The Climate Change Authority is being funded, with $42.6 million allocated. [17] The Australian Broadcasting Corporation is set to have its funding restored, costing $83.7 million over four years. [17] The Australian Tax Office’s tax avoidance taskforce is set to crack down on tax avoidance by multinationals and individuals. [17]

The budget also provided a significant boost to vocational education. $922 million is being spent over five years to provide 480,000 fee-free Technical and Further Education places. [18]

Debt and deficit

The underlying cash balance for this financial year is forecast to be a $36.9 billion deficit. [19] A structural deficit is expected to remain for the next decade. [7] As of 14 October Australian government debt was $892.3 billion. [7]

Opposition and crossbench response

Opposition Leader Peter Dutton criticised the budget as a "missed opportunity". [20] David Pocock was disappointed that fossil fuels were still being subsidised.

Reception

The Chief Executive of the Australian Council for International Development praised the increases in foreign aid spending as critical and a strong step. [13] The National Mental Health Commission welcomed the introduction of a set of well-being measures. The Australian Council of Social Service was extremely concerned for people on the lowest incomes.[ citation needed ] Amnesty International Australia praised funding for justice reinvestment programs to help keep children out of the criminal justice system. [21]

See also

Related Research Articles

The Australian Broadcasting Corporation (ABC) is the national broadcaster of Australia. It is principally funded by direct grants from the Australian Government and is administered by a government-appointed board. The ABC is a publicly owned body that is politically independent and fully accountable, with its charter enshrined in legislation, the Australian Broadcasting Corporation Act 1983. ABC Commercial, a profit-making division of the corporation, also helps to generate funding for content provision.

<span class="mw-page-title-main">2009 Australian federal budget</span>

The 2009 Australian federal budget for the Australian financial year ended 30 June 2010 was presented on 12 May 2009 by the Treasurer of Australia, Wayne Swan, the second federal budget presented by Swan, and the second budget of the first Rudd government. Swan commented that the budget would be tougher than in previous years. "Projected government revenue has fallen by $200 billion since the last budget because of the global economic crisis."

<span class="mw-page-title-main">Gillard government</span> Australian government led by Julia Gillard (2010–2013)

The Gillard government was the Government of Australia led by the 27th prime minister of Australia, Julia Gillard, of the Australian Labor Party. The Gillard government succeeded the first Rudd government by way of the Labor Party leadership spill, and began on 24 June 2010, with Gillard sworn in as prime minister by the governor-general of Australia, Quentin Bryce. The Gillard government ended when Kevin Rudd won back the leadership of the Australian Labor Party on 26 June 2013 and commenced the second Rudd government.

<span class="mw-page-title-main">2010 Australian federal budget</span> Australian federal budget

The 2010 Australian federal budget for the Australian financial year ended 30 June 2011 was presented on 11 May 2010 by the Treasurer of Australia, Wayne Swan, the third federal budget presented by Swan, and the third budget of the first Rudd government.

<span class="mw-page-title-main">2012 Australian federal budget</span>

The 2012 Australian federal budget for the Australian financial year ended 30 June 2013 was presented on 8 May 2012 by the Treasurer of Australia, Wayne Swan, the fifth federal budget presented by Swan, and the second budget of the Gillard government. The budget was described as a "battlers" budget with benefits geared towards families and low income earners. It forecast a surplus of $1.5 billion in the financial year ended 30 June 2013.

<span class="mw-page-title-main">2013 Australian federal budget</span>

The 2013 Australian federal budget for the Australian financial year ended 30 June 2014 was presented on 14 May 2013 by the Treasurer of Australia, Wayne Swan, the sixth federal budget presented by Swan. The 2013 budget estimated total revenue of A$387.7 billion and spending of A$398.3 billion, a deficit of A$18 billion, with a return to surplus expected in the 2015 Australian federal budget. Some of the measures in the budget had been announced by various Ministers before the budget.

<span class="mw-page-title-main">Abbott government</span> 2013–2015 federal executive government of Australia

The Abbott government was the federal executive government of Australia led by the 28th Prime Minister Tony Abbott. The government was made up of members of the Liberal–National Coalition. The Leader of The Nationals, Warren Truss, served as Deputy Prime Minister. Following the 2013 Australian federal election held on 7 September, the Coalition defeated the second Rudd government, ending six years of Labor government. The Abbott government was sworn into office on 18 September 2013. Less than two years later on 14 September 2015, Malcolm Turnbull defeated Abbott in a leadership ballot, 54 votes to 44 and the Turnbull government became the executive government of Australia.

<span class="mw-page-title-main">Jim Chalmers</span> Australian politician (born 1978)

James Edward Chalmers is an Australian politician. He has been Treasurer of Australia in the Albanese government since May 2022. He is a member of the Australian Labor Party (ALP) and has served as a member of parliament for the division of Rankin since 2013.

<span class="mw-page-title-main">2014 Australian federal budget</span>

The 2014 Australian federal budget was the federal budget to fund government services and operations for the 2014/15 financial year. The 2014 budget was the first delivered by the Abbott government, since the Coalition's victory in the 2013 Australian federal election. Treasurer Joe Hockey presented the budget to the House of Representatives on 13 May 2014.

<span class="mw-page-title-main">2015 Australian federal budget</span>

The 2015 Australian federal budget was the federal budget to fund government services and operations for the 2015/16 financial year. The 2015 budget was the second and last submitted by the Abbott government, since the Coalition's victory in the 2013 Australian federal election. Treasurer Joe Hockey presented the budget to the House of Representatives on 12 May 2015.

<span class="mw-page-title-main">2016 Australian federal budget</span>

The 2016 Australian federal budget was the federal budget to fund government services and operations for the 2016–17 financial year. It was presented to the House of Representatives by Treasurer Scott Morrison on 3 May 2016. It was the third budget to be handed down by the Liberal/National Coalition since their election to government at the 2013 federal election, and the first to be handed down by Morrison and the Turnbull government.

<span class="mw-page-title-main">2017 Australian federal budget</span>

The 2017 Australian federal budget was the federal budget to fund government services and operations for the 2017–18 financial year. The budget was presented to the House of Representatives by Treasurer Scott Morrison on 9 May 2017. It was the fourth budget to be handed down by the Liberal/National Coalition since their election to government at the 2013 federal election, and the second to be handed down by Morrison and the Turnbull government.

<span class="mw-page-title-main">2018 Australian federal budget</span>

The 2018 Australian federal budget was the federal budget to fund government services and operations for the 2018–19 financial year. The budget was presented to the House of Representatives by Treasurer Scott Morrison on 8 May 2018. It was the fifth budget to be handed down by the Liberal/National Coalition since their election to government at the 2013 federal election, and the third and final budget to be handed down by Morrison and the Turnbull government.

<span class="mw-page-title-main">Morrison government</span> Australian government, 2018–2022

The Morrison government was the federal executive government of Australia, led by Prime Minister Scott Morrison of the Liberal Party of Australia, between 2018 and 2022. The Morrison government commenced on 24 August 2018, when it was sworn in by the Governor-General of Australia. It was composed of members of the Liberal–National Coalition and succeeded the Abbott (2013–2015) and Turnbull (2015–2018) coalition governments in office, competing against the Australian Labor Party as the major Opposition party. Nationals Leader Michael McCormack was Deputy Prime Minister of Australia from the formation of the Morrison government until June 2021. He was replaced as Leader of the Nationals and Deputy Prime Minister by Barnaby Joyce.

<span class="mw-page-title-main">Economic policy of the Joe Biden administration</span>

The economic policy of the Joe Biden administration, dubbed Bidenomics, is characterized by relief measures and vaccination efforts to address the COVID-19 pandemic, investments in infrastructure, and strengthening the social safety net, funded by tax increases on higher-income individuals and corporations. Other goals include increasing the national minimum wage and expanding worker training, narrowing income inequality, expanding access to affordable healthcare, and forgiveness of student loan debt. The March 2021 enactment of the American Rescue Plan to provide relief from the economic impact of the COVID-19 pandemic was the first major element of the policy. Biden's Infrastructure Investment and Jobs Act was signed into law in November 2021 and contains about $550 billion in additional investment. His Inflation Reduction Act was enacted in August 2022.

The GST distribution dispute is an ongoing political controversy concerning the distribution of goods and services tax (GST) revenue amongst the Australian states and territories and the federal government. The dispute was originally based upon Western Australia's (WA) dissatisfaction with its low returns, which led to reform in 2018. The 2018 reform guarantees all states and territories a minimum return on their contribution.

<span class="mw-page-title-main">March 2022 Australian federal budget</span> March 2022 Australian budget

The March 2022 Australian federal budget was the federal budget to fund government services and operations. The budget was presented to the House of Representatives by Treasurer Josh Frydenberg on 29 March 2022. It was the ninth budget to be handed down by the Liberal/National Coalition since their election to government at the 2013 federal election, the fourth budget to be handed down by Frydenberg and the Morrison government and the last budget to be handed down by the Morrison government prior to the 2022 Australian federal election. It was the first of two federal budgets to be handed down in 2022; a second budget was delivered in October by the successive government.

<span class="mw-page-title-main">Albanese government</span> Government of Australia since 2022

The Albanese government is the federal executive government of Australia, led by Prime Minister Anthony Albanese of the Australian Labor Party. The Albanese government commenced on 23 May 2022, when Albanese and an interim ministry of four other Labor MPs were sworn into their relevant ministerial portfolios by the Governor-General of Australia. The government is composed of members of the Australian Labor Party. The party initially governed with 77 seats on the floor of the House of Representatives, enough for a two-seat majority. Albanese succeeded the Scott Morrison-led Liberal/National Coalition government (2018–2022), which became unable to continue in government following their defeat in the 2022 federal election. This is the first Labor government to be in office at the federal level since the second Rudd government was defeated by the Coalition at the 2013 election. Deputy Labor leader Richard Marles is serving as Deputy Prime Minister of Australia.

The 2023-2024 Australian federal budget is the federal budget to fund government services and operations. The budget was presented to the House of Representatives by Treasurer Jim Chalmers on 9 May 2023. It was the second budget handed down by the Australian Labor Party since their election to government at the 2022 federal election.

The 2024–25 Australian federal budget will be delivered on budget night at 7:30pm on Tuesday, 14 May 2024 by Treasurer Jim Chalmers. The budget will dictate how the Australian Government will allocate an estimated A$715 billion across the federal government, and to state and territory governments. It will be the third federal budget handed down by the Labor Party since their victory in the 2022 Australian federal election.

References

  1. 1 2 Chalmers, Jim; Gallagher, Katy (25 October 2022). "Budget Paper No. 1: Budget Strategy and Outlook" (PDF). budget.gov.au. Retrieved 20 April 2024.
  2. ↑ Roberts, Georgia (23 September 2023). "Government reveals $22 billion budget surplus in final outcome figures". ABC News . Retrieved 20 April 2024.
  3. ↑ Hannam, Peter (26 October 2022). "Australia's inflation hits 7.3%, the highest level since 1990, with interest rates now likely higher for longer". The Guardian . Retrieved 30 October 2022.
  4. ↑ Glenday, James (17 October 2022). "Treasurer Jim Chalmers warns of global economy's 'perilous path' ahead of federal budget". ABC News . Australian Broadcasting Corporation . Retrieved 30 October 2022.
  5. 1 2 Seeto, Tamika (25 October 2022). "Budget 2022 unveils first 'well-being' budget". Yahoo! Finance. Retrieved 31 October 2022.
  6. ↑ "Wellbeing focus welcome in Federal Budget update". National Mental Health Commission . Government of Australia. 25 October 2022. Retrieved 31 October 2022.
  7. 1 2 3 Martin, Sarah (24 October 2022). "Australian budget 2022 preview: what we know so far". The Guardian . Retrieved 30 October 2022.
  8. 1 2 Uren, David (28 October 2022). "Australia's extraordinary budget windfall could presage a painful return to earth". Australian Strategic Policy Institute . Retrieved 31 October 2022.
  9. ↑ Janda, Michael (25 October 2022). "What does the federal budget deliver for business? Child care, skills and tax the centrepieces" . Retrieved 2 November 2022.
  10. 1 2 Hayne, Jordan (8 October 2022). "Labor promises cheaper child care, billions of investment in electricity grid in Budget response". ABC News . Australian Broadcasting Corporation . Retrieved 30 October 2022.
  11. 1 2 "Why mums are branding the federal budget's paid parental leave changes a 'massive slap in the face". 9 News. Nine Digital. 26 October 2022. Retrieved 30 October 2022.
  12. ↑ "Budget 2022: Renewable energy gets $20b boost". Yahoo! Finance. Yahoo. 25 October 2022. Retrieved 30 October 2022.
  13. 1 2 Dziedzic, Stephen (21 October 2022). "Australian government commits to spending $900 million to boost soft-power in the Pacific region". ABC News . Australian Broadcasting Corporation . Retrieved 30 October 2022.
  14. ↑ Long, Claudia (16 November 2022). "Labor announces NBN pitch ahead of next federal election". ABC News . Australian Broadcasting Corporation . Retrieved 2 November 2022.
  15. ↑ Chung, Frank (25 October 2022). "Federal budget 2022: Millions to get cheaper medicines from January 1". Nationwide News. Retrieved 30 October 2022.
  16. ↑ Kelly, Christopher (26 October 2022). "Federal budget commits to aged care reform". Australian Ageing Agenda. Retrieved 30 October 2022.
  17. 1 2 3 4 Cassidy, Caitlin (25 October 2022). "Federal budget 2022 summary – winners and losers: who will benefit and who was left behind?". The Guardian . Retrieved 31 October 2022.
  18. ↑ Janda, Michael (25 October 2022). "What does the federal budget deliver for business? Child care, skills and tax the centrepieces". ABC News . Australian Broadcasting Corporation . Retrieved 2 November 2022.
  19. ↑ Martin, Sarah (24 October 2022). "Budget deficit to halve this financial year but spending pressures mean boost will be short-lived". The Guardian . Retrieved 31 October 2022.
  20. ↑ "Budget reply: Opposition criticises Labor's 'missed opportunity' on cost of living crisis". 9 News. 27 October 2022. Retrieved 31 October 2022.
  21. ↑ "Australian Federal Budget 2022: Focus on justice reinvestment welcome start". Amnesty International Australia. 25 October 2022. Retrieved 4 November 2022.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.