October 2022 Australian federal budget

The budget was handed down during a period of high inflation. The consumer price index had risen to 7.3% over the past year, the highest since June 1990. Before the budget was delivered the Treasurer was cautioning the state of the global economy. He warned our key trading partners faced the risk of recession. The budget featured a new set of well-being measures. The plan is to introduce targets next year. ==Forecasts==

Australia’s gross domestic product is expected to grow 3.25% this financial year, dropping to 1.5% in the following financial year. This is the lowest since the early 1990s recession, aside for the drop in growth during the pandemic. Revenues Total government revenue is $644 billion this financial year. Government revenues were $57.3 billion better than last predicted in the March budget. The cause is higher company taxes generated by resource exports. The increased price of energy is a windfall for energy exporters. Income taxation Indirect taxation Non-taxation receipts Memorandum Expenses ==Expenditure==

The budget included a $6.2 billion plan to remove the limits to annual Child Care Subsidy (CCS) payments, effective from July 2022. The subsidy would be offered to families earning up to $530,000 annually. The entitlement will expand from 20 weeks to 26 weeks in 2026-27. Foreign aid to the Pacific is seeing a boost of $375 million, bringing the total to $900 million. $2.4 billion is to go towards improving internet speeds for 1.5 million homes and businesses on the National Broadband Network. The maximum general co-payment for Pharmaceutical Benefits Scheme scripts is being reduced from $42.50 to $30 at a cost of $200 million. $2.5 billion is to be spent over four years on improving aged care. Specifically funding is for an increase in the number of care minutes residents receive and the commitment to require aged care homes to have a registered nurse onsite 24/7 from 1 July 2023. $170 million has been allocated to women’s safety. 500 frontline workers will support women and children experiencing family, domestic and sexual violence. The Climate Change Authority is being funded, with $42.6 million allocated. ==Debt and deficit==

The underlying cash balance for this financial year is forecast to be a $36.9 billion deficit. A structural deficit is expected to remain for the next decade. As of 14 October Australian government debt was $892.3 billion. ==Opposition and crossbench response==

Opposition Leader Peter Dutton criticised the budget as a "missed opportunity". David Pocock was disappointed that fossil fuels were still being subsidised. ==Reception==

The Chief Executive of the Australian Council for International Development praised the increases in foreign aid spending as critical and a strong step. ==See also==