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MP+ Federal Budget Update October 2022
Federal Budget October 2022 – A “Strong & Sensible” Budget
The October 2022-23 Federal Budget was handed down on Tuesday 25 October 2022 by Treasurer Jim Chalmers of the Albanese government off the back of their election win earlier in the year, with the preceding Morrison government handing down a pre-election budget in March. In this Budget, the key areas of focus for the Government are “Cost of Living Relief”; “A Stronger, More Resilient Economy”; “Responsible Budget Repair”; and “Paying for What’s Important”.
Measures introduced in this Budget to address those key areas include increased subsidies for Child Care; expanded Parental Leave; lower PBS co-payments; further investment in the NDIS and mental health services; investment in social and affordable housing; additional support for veterans, women experiencing violence, and Australians in Aged Care; additional protection for the Great Barrier Reef; further investment in the NBN; and more.
As the first Budget handed down by the recently elected Albanese government, “solid and sensible” appears to be the tagline. Its primary focus includes reducing unnecessary expenditure, tackling soaring inflation and interest rates, addressing the cost of living and housing crises, and reining in the Government’s debt.
The good news is that the Budget, with its lower deficits this year and next, won’t add to inflationary pressure in the near term and so shouldn’t add to RBA rate hikes any further than are already likely. Another 0.25% rate in November is expected, with the cash rate to peak at 2.85%.
In recent Budgets, especially through the height of the COVID-19 pandemic, we’ve seen the cash well and truly splashed, with many Australians receiving some sort of injection of funds. However, this Budget certainly won’t bring any quick cash to your bank account. Shorter-term measures like tax offsets and JobKeeper payments have been replaced with longer-term measures such as childcare subsidies, increased access to paid parental leave, and an increase to how much pensioners can earn before their pension is affected.
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