Federal Budget 2022

2022 - 3 - 28

Post cover — Image courtesy of "The Guardian"

Federal budget 2022: Josh Frydenberg promises cash splash for ... (The Guardian)

Extra tax cut for 10 million low and middle income workers worth up to $420 – while fuel excise will be slashed for next six months.

Under the cost of living package, the low and middle income tax offset will be increased by $420, meaning all workers earning up to $126,000 a year will receive an extra boost when they lodge their tax return for this year. “Events abroad are pushing up the cost of living at home,” he said in his budget speech. Budget commitments for the regions outlined in the budget total more than $21bn over the medium term. “It doesn’t make up for the fact that people’s real wages are falling. “They don’t have a plan that goes beyond the May election. As a result of the booming jobs market, the budget says wage growth is on track to accelerate at its fastest pace in almost a decade, with the wage price index to jump from 2.75% this year to 3.25% next year. “And the government is now pretending to care about those costly pressures because Scott Morrison has to call an election in the next fortnight.” These measures will cost a combined $5.6bn. At the same time, economic growth forecasts have been upgraded on the back of momentum in the jobs market and buoyant consumer spending, with GDP now forecast to grow by 4.25% in 2021-22, 3.5% in 2022-23 and 2.5% in 2023-24. It is the most short-sighted budget in memory – it has a shelf life of about six or seven weeks.” In addition, the government will also halve the fuel excise for six months – which is now set at 44 cents a litre – saving about $15 on the average price of a tank of petrol, at a cost to the budget of about $3bn. Frydenberg said the regions were a “priority” for the government, acknowledging that there was “a lot in this budget for the regions”.

The Infrastructure spend continues - Overview of Infrastructure ... (Gilbert + Tobin)

Notwithstanding the scale of the forecast Budget deficit, the Australian Government remains committed to significant spending on infrastructure and other ...

- an additional A$543.5 million over 2 years from 2021‑22 to continue to support the aviation sector as part of the Government’s response to the sector’s recovery from the COVID‑19 pandemic. This initiative is part of the Government’s response to the 2021 Regional Telecommunications Review. - an additional A$25.2 million over 2 years from 2022‑23 to maintain appropriate oversight and environmental management at Commonwealth leased airports to ensure compliance with airport building control and environmental regulations. - a commitment to build a new submarine base on the east coast of Australia to support Australia’s future nuclear‑powered submarines and has identified Brisbane, Newcastle and Port Kembla as the preferred sites. This will continue essential services to regional communities and other operations across the sector. - the unemployment rate reached 4% and the participation rate reached a record high of 66.4% in February 2022. This will support strong profitability in the mining and agricultural sectors, with some positive flow through to the broader economy. Headline inflation in Australia picked up in 2021 to be 3.5% to the December quarter. Australia Government funding includes transport, waste and recycling, housing, liveability, pedestrian infrastructure, digital connectivity and innovation projects. Investment will be targeted at strategic infrastructure projects that drive economic and jobs growth in existing and emerging industries. - economic growth forecasts have been revised upwards, driven by stronger-than-expected momentum in the labour market and consumer spending. A$680.6 million over 11 years from 2022‑23 to support projects under the South East Queensland (SEQ) City Deal that enhance transport and digital infrastructure to deliver a better connected region, create jobs and improve liveability in the SEQ region.

Federal Budget 2022: Winners and losers - who's set to benefit most ... (7NEWS.com.au)

A cash splash for some and tax headaches for others - how do you shape up following the federal budget?

“This is not sustainable for pubs and clubs. Many of the measures that propped up the arts sector will be terminated in the coming financial year, the budget acknowledges. The phasing out of the offset is the latest in a three-stage plan to reform tax brackets, due to be completed in the 2024-25 financial year. Expenses under the arts and cultural heritage sub-functions are forecast in the budget to decrease by 10.6 per cent in real terms from this financial year to 2022-23. Much speculation had been made in the lead-up to the budget that the so-called beer tax could be cut. Tuesday night’s budget confirmed that the government will not extend the low and middle income tax offset for a third year. That follows the cost of petrol rising above $2 a litre in the wake of the war in Ukraine. The treasurer also announced that the size of the Defence workforce would be expanded at a cost of $38 billion. The government expects that the cost of petrol will tumble within a fortnight of handing down the budget after slashing the fuel excise. A one-off cash payment at the centre of weeks of speculation leading up to the budget will ultimately not reach everyday, working Australians. The expansion will broaden the income test to include a household income threshold of $350,000 per year. For the first time, single parents will also now be able to access the full 20 weeks of leave.

Federal Budget 2022: What's in it for schools? (The Educator Online)

An additional $62.4m will also be provided to continue support to projects that enable better student educational outcomes through the National School Reform ...

In many cases, these families have not only lost their homes, but all their possessions and their livelihoods.” “No funding has been allocated for capital works in public schools, and no additional funding has been allocated for preschools,” she said. "We were particularly pleased to see significant new investment in initiatives to improve regional connectivity. “This budget is incredibly disappointing, but not surprising given the blatant preference for private schools and private VET providers that the Morrison Government continues to show at the expense of public schools and TAFEs.” “I want to thank the Minister for Education and Youth, Stuart Robert, for his robust advocacy in securing funding for these measures and for $1.37m to assist students of Independent schools in flood ravaged areas. The National Catholic Education Commission also welcomed the Budget, saying the extension of the Non-Government Reform Support Fund for a further year will enable Catholic schools to continue to implement agreed national and state-based reform initiatives set out in the National School Reform Agreement, and other emerging priorities.

Federal Budget 2022: Josh Frydenberg's tax breaks appease some ... (The West Australian)

Most of us welcomed the cut in excise on fuel, especially with the rocketing cost of living, but critics have pointed out that there was plenty the Budget ...

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Federal budget 2022: Queensland flood victims say $6 billion flood ... (ABC News)

Last night's federal budget revealed $6 billion will be spent on flood relief for communities in south-east Queensland and northern New South Wales, ...

"We have significant supply-chain cost issues, and many businesses are feeling that. "We know that natural disasters, like the most recent floods, do hit people on low incomes the worst. "We did see some investment incentives for businesses to get more digitally savvy and invest in their digital presence and how they can scale and grow their business through that, but we really do [think] there could be more in other areas to really firepower the small business economy." Amanda Rohan from the Chamber of Commerce and Industry Queensland said she welcomed incentives in the budget to help businesses upskill, but hoped there would be measures announced to help address a shortage of skilled workers now. "A $250 payment [for those receiving some form of welfare] is really going to help you for about three weeks, and then you're back in the situation you're in to begin with." "We are already living through a housing crisis and the recent flood has laid that bare and added additional people in our state to the already tens of thousands of Queenslanders who are without a safe place to call home." "Our living affordability report last year showed that a working family on the minimum wage is in the red by about $87 a week when they try to meet the basics for the basic cost of living," she said. "I've been on the phone to homeless hotlines, and they have told me straight up, 'We don't have housing for you'. We are still in a house that is full of mould that is going to get worse." It is unclear whether any of the $6 billion announced in the budget — and expected to be spent on recovery — has been earmarked for this package. "We know there's money there in the budget for flood recovery, but we still haven't got a clear answer in the budget or even a letter back from the Prime Minister saying we'll invest, we're going to help Queensland and I just think that's incredibly disappointing." "That money that they're saying is there, it doesn't need to be a future payment, it needs to be payments to the flood-affected now, so that we can get back on our feet." "We are in a motel with a lot of other flood-affected people and there's people here that literally don't have enough money to go out and buy their kids shoes to go to school with.

Federal budget 2022: Here are this year's winners and losers (The New Daily)

Millions of taxpayers are among the major winners in this year's budget as the Morrison government hands out $16.4 billion in tax breaks and one-off ...

- Small businesses with an annual turnover of less than $50 million will from Tuesday night be able to deduct 20 per cent of the cost of training their employees - First- and second-year apprentices in priority industries will have 10 per cent of their wages paid by taxpayers through to 2025-26, falling to 5 per cent in their third year - The top payment will rise from $1080 to $1500, while the smallest payment will increase from $256 to $676