2022-23 Federal Budget: No long-term view to address the debt burden
March 29 2022
Small business will benefit from target measures to enhance training, the cost of living measures provide a short sugar rush, however the government is not clear how Australia's net debt will be reduced, the Institute of Public Accountants (IPA) has said in response to the 2022 23 Federal Budget announcement.
"This budget is a broad-brush bid to respond to short-term pressure" IPA Chief Executive Officer, Andrew Conway, said.
"The Budget forecasts net debt peaking at 33.1 per cent in 2026. For business to have confidence we must see a plan to tackle Australia's long-term debt position.“
A big win for small business in tonight’s budget is the $8 million going to ABFEO. The IPA is looking forward to more advocacy to help reduce compliance costs and improve business conditions.
Likewise, a new patent box for the agriculture and low emissions sector will go a long way to promote sustainable innovation practices, however we need to unpack the policy to understand who will qualify for concessional tax treatment.
Overall, spending money and tax concessions are relatively easy compared to implementingthe all important structural reforms necessary to sustain our forward growth projectory to pay down our debt.
"Ultimately, the people who should be tuning into this budget are the millennials who will be paying for it down the track," Conway said.