“The Government has the difficult challenge of meeting multiple goals: maintaining fiscal discipline to assist monetary policy in bringing inflation back to the 2%-3% target range, providing some targeted relief to cost of living pressures, putting in place new arrangements to reverse the projected blowout in spending on a number of large programs, implementing the AUKUS defence policy priorities, further developing climate change policies, implementing some tax reform and moving the medium term budget outlook onto a more sustainable footing,” Mr Halmarick writes.
The report also highlights potential policy/spending initiatives in the 2023/24 Budget may include:
- Relief to household power bills
- Significantly increased defence spending
- NDIS reform and restructure
- An update to the cost of Stage Three tax cuts
The report also sees this improved budget position flowing into 2023/24, although a less positive outlook for following years. “The Government is expected to revise up their nominal GDP growth forecast for 2023/24 – largely on the back of a reported upgrade in commodity price forecasts,” Mr Halmarick comments.
Read Mr Halmarick’s full 2023/24 Budget Preview.
Information for media on CBA’s Budget coverage
Journalists can contact Commonwealth Bank Media (firstname.lastname@example.org or 02 9118 6919) to arrange interviews with Mr Halmarick about the Federal Budget. He will publish a short Budget response by 8.30pm on Tuesday 9 May and a detailed analysis report the following morning. Access our Federal Budget coverage at: commbank.com.au/federalbudget