On October 2022, 10, Finance Minister Jim Chalmers released a draft federal budget based on the election promises of the new Labour government.
Against the backdrop of rapidly increasing economic risks, such as deteriorating global growth prospects, rising inflation and structural pressures on spending, the budget balances providing support for the cost of living, investing in economic activity, and fiscal constraints.
The main contents of this announcement are as follows:
- The fiscal balance is currently improving, but will worsen in the future, so it will continue to be difficult to make.
- There is no change to the third tax reduction legislation for individuals.
- Changes in corporate tax treatment primarily cover interest and royalties.
- There is no mention of the patent box system or tax deductions for digital games.
- Contributions to health and elderly care account for a large proportion, but no efforts have been made to reform the system.
- Immigration programs are overhauled to address skills shortages and productivity issues.
- Childcare support and paid parental leave system to promote equity at home, at work and in society.
- Investment in advanced skills and future industries to modernize the workforce.
- Review of infrastructure-related investments to reflect new policies.
- A $150 billion National Recovery Fund effort focused on revenue-generating investments.
- Promote energy change and build resilience by focusing on emission reduction and disaster countermeasures.
- The Ministry of Finance announced consultations on welfare-related measures for future budgets.