GOVERNMENT SPENDING POLICY – AUSTRALIA

PM signals budget help for families, small business

roymorgansocial Leave a comment

Original article by James Massola
The Sydney Morning Herald – Page: Online : 4-Apr-24

Prime Minister Anthony Albanese will use a speech on Thursday to state that small businesses and families will be ‘front and centre’ again in the federal government’s budget on 14 May. He will note that assisting families and small businesses with their energy bills was a key priority of the 2023 budget. Albanese’s comments in his Council of Small Business Organisations of Australia speech will heighten expectations that the government is set to extend its Energy Bill Relief fund, which is slated to end on 30 June. He will also emphasise the importance of small businesses to Australia’s future prosperity, noting that they are job creators, innovators and early adopters of technology such as clean energy.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, COUNCIL OF SMALL BUSINESS ORGANISATIONS OF AUSTRALIA LIMITED

Tax take and spending near record highs

roymorgansocial Leave a comment

Original article by Michael Read
The Australian Financial Review – Page: 6 : 8-Mar-24

Analysis of the latest national accounts data shows that federal, state and local government spending equated to 27.2 per cent of GDP in 2023, which is nearly a record high. Tax revenue across all three levels of government was also a near-record high of 30.3 per cent of GDP. Treasurer Jim Chalmers has indicated that his primary focus will shift from containing inflation to stimulating the economy. However, he has ruled out a big increase in government spending, while economists contend that reducing debt should be the federal government’s priority.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

PM pledges $2b green energy fund

roymorgansocial Leave a comment

Original article by Phillip Coorey
The Australian Financial Review – Page: 1 & 5 : 5-Mar-24

Prime Minister Anthony Albanese will announce on Tuesday that the federal government will establish a $2 billion finance facility to help fund green energy and infrastructure investment in South-East Asia. The facility is one of five recommendations by special envoy to South-East Asia Nicholas Moore that the government will adopt and announce on the sidelines of the ASEAN summit. Moore told the summit on Monday that South-East Asia will need an estimated 454 gigawatts of additional generation capacity between 2021 and 2050; he said that much of the extra capacity will need to come from renewable energy sources.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET, ASSOCIATION OF SOUTH-EAST ASIAN NATIONS

Labor’s drone ship gamble

roymorgansocial Leave a comment

Original article by Cameron Stewart
The Australian – Page: 1 & 4 : 21-Feb-24

The federal government will increase its spending on defence to 2.4 per cent of GDP from the early 2030s, in response to the review of the navy’s surface fleet. The government will increase defence spending by $1.7bn over the four-year forward estimates period and $11.1bn over the next decade. Amongst other things, the government will fast-track the acquisition of 11 new general purpose frigates, while the Hunter-class project will be scaled back from nine frigates to just six. The navy will also retire the first of the ageing Anzac-class frigates immediately, while a second will be decommissioned by 2026. The government will invest in a fleet of semi-autonomous ships that are still being developed in the US; these ‘drone’ ships will each have 32 missile cells, significantly increase the navy’s firepower.

CORPORATES
ROYAL AUSTRALIAN NAVY

Federal auditor to probe Labor’s $2.2b rail plan

roymorgansocial Leave a comment

Original article by Gus McCubbing
The Australian Financial Review – Page: 6 : 13-Feb-24

A Senate estimates hearing has been told that Auditor-General Grant Hehir will examine the federal government’s $2.2 billion commitment to Victoria’s Suburban Rail Loop project. Hehir will look at whether this commitment represents value for money and if it was "informed by appropriate departmental advice". Department of Infrastructure secretary Jim Betts said the department will co-operate fully with Hehir’s investigation. Marion Terrill, former director of the Grattan Institute’s Transport and Cities Program, has welcomed the investigation, stating that big projects require more rather than less scrutiny.

CORPORATES
AUSTRALIA. OFFICE OF THE AUDITOR-GENERAL, AUSTRALIA. DEPT OF INFRASTRUCTURE, TRANSPORT, REGIONAL DEVELOPMENT, COMMUNICATIONS AND THE ARTS, GRATTAN INSTITUTE

$3bn tied to lift in learning

roymorgansocial Leave a comment

Original article by Natasha Bita
The Australian – Page: 1 & 2 : 31-Jan-24

The federal government’s share of public school funding has traditionally been set at 20 per cent. However, Education Minister Jason Clare will propose progressively increasing this to 22.5 per cent by 2026. The state and territory governments will in turn be required to increase their own funding for public schools. The additional funding will have to be spent on measures aimed at improving teaching standards and educational outcomes, including assistance for students who are at risk of being ‘left behind’. The Australian Education Union has advocated lifting the federal government’s share of education funding to 25 per cent.

CORPORATES
AUSTRALIA. DEPT OF EDUCATION, AUSTRALIAN EDUCATION UNION

Cost-of-living relief possible before May: PM

roymorgansocial Leave a comment

Original article by John Kehoe
The Australian Financial Review – Page: 4 : 16-Jan-24

The federal government could potentially unveil further measures aimed at addressing the rising cost of living ahead of the budget on 14 May. Prime Minister Anthony Albanese says the government understands that Australians are "doing it tough", and it may be open to additional cost-of-living relief. However, the government has ruled out cash handouts, although potential measures could include further rebates for household energy bills. The upcoming by-election in the Melbourne seat of Dunkley could affect the timing any household relief.

CORPORATES
AUSTRALIA. DEPT OF THE PRIME MINISTER AND CABINET

$10 billion more in spending cuts, changes aimed at inflation fight

roymorgansocial Leave a comment

Original article by Shane Wright
The Sydney Morning Herald – Page: Online : 12-Dec-23

Treasurer Jim Chalmers and Finance Minister Katy Gallagher will release the mid-year budget update on Wednesday, and they are tipped to reveal that almost $10 billion in federal spending will either be cut or redirected to other areas to help fight inflation. However, the budget update will also include $5.2 billion in what the federal government has labelled ‘unavoidable’ spending, including $1.5 billion to end a special COVID-era visa program and $254 million on additional biosecurity spending, including on efforts to stop a growing incursion of imported red fire ants.

CORPORATES
AUSTRALIA. DEPT OF FINANCE, AUSTRALIA. DEPT OF THE TREASURY

Chalmers hints at cost-of-living relief

roymorgansocial Leave a comment

Original article by Michael Read
The Australian Financial Review – Page: 4 : 5-Dec-23

Treasurer Jim Chalmers says households should not expect significant cost-of-living relief in the federal government’s mid-year update. However, he adds that the government may be open to further measures in its May 2024 Budget, depending on factors such as economic conditions at that time. Meanwhile, the national accounts data for the September quarter will be released on Wednesday; Chalmers says the data is likely to reflect the impact on economic growth of 13 interest rate rises since May 2022. The general consensus of economists is that the economy expanded by 0.4 per cent in the quarter.

CORPORATES
AUSTRALIA. DEPT OF THE TREASURY

Bill shock fears risk NDIS deal

roymorgansocial Leave a comment

Original article by Sarah Ison, Stephen Lunn, Greg Brown
The Australian – Page: 1 & 5 : 30-Nov-23

The federal government will push for an overhaul of the National Disability Insurance Scheme at a meeting of the national cabinet on 6 December. However, several state and territory governments are believed to have warned that they will not agree to any NDIS reforms unless they know just how much the changes will cost them. NDIS Minister Bill Shorten has declined to comment on how the proposed reforms would affect state government budgets. However, he has emphasised the urgency of reining in the cost of the scheme.

CORPORATES