Federal Budget 2022-23 | October
Business hit by cuts despite heavy economic lifting
On 25 October 2022, Treasurer Jim Chalmers delivered the Federal Budget October 2022-23.
The first Labor budget, and second for Australia in 2022, offers few new incentives or impediments to business, focusing instead on delivering election promises, addressing inflation and paving the way for fiscal repair.
While some measures support middle market businesses, broader measures to encourage innovation and growth across the economy and a vision for long-term structural reform are lacking. This points to the likelihood of more substantial changes in the May 2023 Budget.
Access our comprehensive analysis below to understand the impacts of this year’s Federal Budget on individuals and middle market businesses.
The majority of the announced initiatives are focused on support for families through childcare and parental leave, affordable housing, education and improving aged care. The Budget was light on structural change for the Australian economy or the tax and compliance regimes, and there is little in the Budget for the businesses that have weathered financial storms across the last two years.
The lack of any structural changes leads us to expect more substantial changes in the next Budget. We would hope and expect that in May 2023 there is some clearer support for Australian business, international investment and a continued focus on growth and employment.
Fast facts
Deficit
The underlying cash deficit is forecast to be $36.9 billion in 2022-23.
Business investment
Non-mining investment is expected to fall from 6.5% in 2022-23 to 3.4% in 2023-24.
Wage growth
Forecast to increase, with wages rising 3.75% in both 2022–23 and 2023–24.
Inflation
Forecast to reach a peak of 7.75% in December 2022.
Share buybacks
$550 million will be saved through changes to share buyback measures.
Tax compliance
Extended tax compliance programs will net the Government $4.7 billion over four years.
