Developing Australia’s sustainability and reducing the cost of living
This year’s Federal Budget focuses on the provision of cost-of-living relief through a $14.6 billion cost-of-living plan, investment in Medicare and the care economy, broadening opportunity for disadvantaged Australians and growing the economy. It delivers a modest surplus, which is encouraging given the challenging global context that projects weakened global growth over the next two years. Consultation with stakeholders has informed the Government’s approach to this Budget, including in areas like migration reform and net-zero investments, which were key areas of focus in the Council’s pre-Budget submission.
Most significantly for the Council’s members are the Budget’s measures designed to strengthen Australia’s economy and make it more secure. These relate to:
- Supporting small and medium sized businesses and start-ups
- Investing in the net-zero economy
- Growing industries of the future and
- Investing in people and skills
The Council was on the ground in Canberra tonight for the Federal Budget lock-up. Our analysis on each of these pillars and their relevance to the private capital industry is contained below.
While the Budget does not contain major taxation reforms, it does signify the Government’s intention to introduce a global and domestic minimum tax of 15 per cent, which will apply to multinationals with annual global revenue of approximately $1.2 billion or more. Targeted consultation with stakeholders on this measure will be required to avoid unintended consequences for Australian businesses with overseas operations.
This is a Budget that seeks to balance cost of living pressures, particularly for those facing deep disadvantage, with investing in productivity enhancing initiatives. For our members, the latter potentially provides opportunities, especially in energy transition, digitalisation and National Reconstruction Fund priorities.
The Council will work with the Government and our members in support of policy settings that empower private capital to contribute to a growing, productive economy.