- The Australian federal budget will be released on 29 March.
- The budget is set to focus on the cost of living, inflation, and fuel prices.
- Experts opine that the beer industry, infrastructure, housing, childcare, and defence can be benefitted under the budget.
The big day is at the doorstep! Australia’s pre-election federal budget will be released on 29 March.
The Australian economy is finally coming out of the shackles of the Covid-19 pandemic. However, the Ukraine-Russia war has caused a significant impact on it. Amid the bitter-sweet days, Aussies are now awaiting the budget, a few hours away now!
Here’s what we know and expect- the March budget 2022 will primarily focus on the cost of living, inflation, and fuel prices.
The current socio-economic scenario across Australia is such that the economy is on the voyage to overcome the disruptions caused by the Covid-19 pandemic and, at the same time, battling the inflation crisis posed onto the Australian economy because of the rising tensions between Ukraine and Russia.
Consumer confidence in Australia significantly falls because of skyrocketing petrol, vegetables, and grains prices. On the other hand, wages are almost stagnant, pushing most Australians behind. Consequently, Aussies have high hopes from the upcoming budget to help them cope with the present conditions.
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So, what are the five things to expect from the pre-election Australia budget?
- Expansion of home buyer scheme
A major expansion in the home buyer scheme is expected from the budget. Under the new home guarantee scheme, tens of thousands of young Australians would receive help to get their feet into the property market. Apart from the young people, regional families and single parents would also receive support under the budget. Consequently, the budget would double the number of spots in the New Home Guarantee scheme to 50,000 per year.
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- Beer tax to be slashed
The Australian economy is likely to experience a tax cut on beer in the March budget. According to few reports, a tax slash would happen on beer by 30 cents. The primary objective behind this is to have Aussies back to pubs and bring the old clubbing landscape back in Australia. Expectations are such that the tax on a keg of beer would drop from AU$70 to AU$35, translating to a 40 cent cut in the price of a pint; on the other hand, a schooner would be 30 cheaper and a pot 20 cents.
- Bonus to Australian workers
In order to help Aussies deal with the rising cost of living, a cash bonus of up to AU$400 could be provided to Australian workers. The said amount would be transferred to the bank accounts before the upcoming federal elections in May 2022. It is primarily for the Australian wage-earners.
- Defence to get a boost
Amid the rising tensions between Russia and Ukraine, Australia’s defence spending is expected to soon reach AU$50 billion a year, or over 2% of GDP. Recently, Defence Minister Peter Dutton announced an AU$875 million worth of investment in 234 defence projects across the country.
- Infrastructure to be benefited
Australia’s economy will be benefited with AU$17.9 billion cash splash on infrastructure spending. Queensland is likely to receive the maximum amount, AU$3.9 billion, towards 43 new projects and five pre-existing ones. New South Wales and Victoria might receive AU$3.3 billion apiece for dozens of projects, and so on.
The upcoming budget brings a new ray of hope for the Australian citizens and the economy. As the clock ticks for the true picture to be out, one thing remains known- the additional government spending would help Aussies relieve from the skyrocketing prices and provide financial stability in the long run.