Invest
Budget to focus on growth and employment amid risks to recovery
This year’s budget will prioritise economic growth and job creation according to the Treasurer.
Budget to focus on growth and employment amid risks to recovery
This year’s budget will prioritise economic growth and job creation according to the Treasurer.
Treasurer Josh Frydenberg will prioritise investments that support economic growth and job creation in the budget later this month, warning that the nation’s economic recovery is “not yet locked in” due to potential downside risks.
Following the release of the national accounts on Wednesday, Mr Frydenberg said that Russia’s invasion of Ukraine and the COVID-19 pandemic were among the main risks to Australia’s ongoing recovery that had been “very strong” to date.
To help keep the recovery on track, the Treasurer said that employment would remain a key focus in the budget this year with investment across a number of areas.
“We are working to a very clear fiscal strategy which has been to drive unemployment down, and now we are on the verge of full employment,” Mr Fryenberg said.
“We have an unemployment rate that the RBA is forecasting to have a 3 in front of it before year’s end, so we will continue to invest in those areas in the budget which help create jobs.”
Greater investment in skills has been flagged after earlier funding saw the number of trade apprenticeships across the country reach a record 220,000 in 2021.
Infrastructure, manufacturing and the digital economy were all earmarked by the Treasurer as priority areas for investment.
Mr Frydenberg suggested that regional areas would be critical to the economic growth of the country moving forward and would receive a “very significant investment” as a result.
The government will seek to introduce incentives to help boost business investment which spiked significantly during the pandemic as a result of the introduction of immediate expensing and loss carry back provisions.
Energy investment will also remain on the government’s radar during this year’s budget.
“We have invested significantly in that transition we are seeing across the energy space, which is trying to simultaneously reduce our carbon footprint, boost the economy, and reduce the price of electricity as well as increase its reliability off the grid,” said Mr Frydenberg.
In light of the conflict between Russia and Ukraine, the Treasurer also drew attention to the government’s investment in international security and said that spending on defence had risen to above 2 per cent of GDP from a low of 1.5 per cent when the government took office.
“We have outlined a very significant defence project pipeline and we will continue to build on that pipeline,” the Treasurer said.
“We will continue to invest heavily in national security. I think that's one of the key features of our response... ever since we've come to government, and we will continue to build on that in the budget.”
RELATED ARTICLES
Economy
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
Economy
RBA May Consider Early Rate Hike Amidst Economic Growth and Inflation Concerns
Australia's economic landscape is witnessing a dynamic shift as the Reserve Bank of Australia (RBA) grapples with the implications of recent growth figures and inflationary pressures. The latest GDP ...Read more
Economy
Inflation concerns grow as consumer price index rises, prompting potential interest rate hikes
The latest Consumer Price Index (CPI) data has sparked fresh concerns about inflation in Australia, with experts suggesting that further interest rate hikes may be on the horizon. The CPI, a key ...Read more
Economy
State Street economist comments on latest labour force data amid market anticipation
The latest labour force data, released today, has prompted a measured response from financial experts, with insights provided by Krishna Bhimavarapu, APAC Economist at State Street Investment ...Read more
Economy
RBA's interest rate hike impacts Australian employment landscape
The Reserve Bank of Australia (RBA) has decided to increase interest rates by 25 basis points, raising the cash rate to 3.85%. This move, aimed at controlling inflation, has elicited responses from ...Read more
Economy
RBA’s latest rate hike sparks debate over economic impact
In a surprising move, the Reserve Bank of Australia (RBA) has increased the cash rate, signalling a significant shift in its monetary policy approach. This decision comes amid a backdrop of unexpected ...Read more
Economy
When inflation reopens the rate door: A broker-sector case study in defending margins, clients and share
Australia’s latest trimmed-mean inflation reading at 3.3% has revived the prospect of another Reserve Bank move and put lenders, brokers and borrowers back on a tightening footing. This case study ...Read more
Economy
Inflation rise dampens hopes for interest rate cuts as employment dynamics shift
In a development that has dashed hopes for an interest rate cut, Australia's Consumer Price Index (CPI) has surged back to 3.8%, erasing the progress made since October. This unexpected rise in ...Read more
Economy
Inflation surge poses challenges for small businesses and consumers
The latest inflation figures have sparked concern among Australian businesses and consumers alike, with the rising costs expected to influence the Reserve Bank of Australia's (RBA) upcoming interest ...Read more
