Federal Budget 2022-23
BDO provided a full analysis of the 2022 Morrison Government Federal Budget delivered by Treasurer Josh Frydenberg in March. The Albanese Government has indicated there will be a second Federal Budget handed down in October 2022.
Amid the recent natural disasters, new waves of COVID-19 infections, ongoing labour market challenges, supply-chain constraints, and potential for rising inflation, it is quite remarkable that many Australian businesses have continued to maintain their resilience and optimism. It is this positive outlook that needs to be highlighted and celebrated as we forge ahead towards a more sustainable future.
So, as Josh Frydenberg delivered his fourth (and possibly last) Federal Budget, the focus is clearly more on the short-term cost of living relief, with the Federal Election just around the corner. Longer-term measures for a sustainable future did not feature strongly and, moving forward, a budget with a significant deficit is not sustainable.
While there is a focus on ‘bread for the masses’, there are a number of measures that will help to overcome some of the hurdles of doing business. There are also some clear signals of the perception that ‘big brother’ is watching, with businesses needing to give the Tax Office access to the underlying transaction data in their accounting systems.
Finally, there are a number of special interest measures including pledges of infrastructure spending, incentivisation of onshore manufacturing, and promotion of the Australian space industry the Government hopes will contribute to greater economic prosperity.
Nowhere in this budget are there economy-wide reforms of the type needed to see Australia prosper into the late 2020s and beyond. It is hoped that with the clear air that comes with the immediate post-election period, the next budget will think strategically about enabling a sustainable future.