Labor Government Federal Budget Report
26th October 2022
The Federal Treasurer, Dr Jim Chalmers, handed down the Labor government's first Federal Budget at 7:30 pm (AEDT) on 25 October 2022.
A number of measures were announced that may be of relevance to you and your family, however there were relatively few taxation or superannuation measures announced.
Despite an uncertain global economic environment, the Treasurer has lauded Australia's low unemployment and strong export prices as reason for a 3.5% growth in the current financial year, slowing to 1.5% in 2023–24. The Budget projects a deficit of $36.9 billion, lower than the forecast earlier this year of $78 billion.
The Federal Budget contains various cost of living relief measures including cheaper child care, expanding paid parental leave and encouraging downsizing to free up housing stock. Key tax measures are targeted at multinationals, particularly changes to the thin capitalisation rules, and changes to deduction rules for intangibles.
Importantly, no amendments have been proposed to the already legislated Stage-3 individual tax rate cuts (which, subject to any future changes, are scheduled to apply from 1 July 2024). Additional funding for a range of tax administration and compliance programs have also been announced. Finally, the fate of a suite of announced but unenacted tax measures, including a few that have been around for at least 10 years, has been confirmed.
Please do contact your usual advisor at PVW Partners should you have any questions in relation to this Federal Budget.
