Federal Budget – October 2022

Treasurer Jim Chalmers’ first federal budget is a career highlight for him, a telling time for the Albanese government, and a critical event for the Australian economy in general.

These are certainly tumultuous times.

Globally, the Russian-Ukraine war has disrupted Europe’s breadbasket and caused inflation to soar. It has also wreaked havoc in world energy markets – with impacts expected to be more severe as we approach the northern winter. The UK ‘government’ (and I use that term loosely) is in a state of flux – despite the very recent appointment of Rishi Sunak as the new Prime Minister.

On the domestic front, inflationary pressures are being felt most acutely at the supermarket registers – and grocery prices are predicted to rise further on the back of devastating floods across the country. After an unprecedented boom period for property prices, home clearance rates are falling month by month. All told, Mr Chalmers has some mighty challenges to confront.

The Labor government has so far adopted some sensible economic principles to its economic management. In this, its first federal budget in nine years, the government has a clear focus on easing the cost-of-living burden that many Australians are facing. But stimulating sectors of the economy while also stemming inflation clearly presents a tough balancing act for the Treasurer.

As most economists know, once the ‘inflation genie’ is out of the bottle, it is hard to put it back in.

Our team of experts have collaborated to share their interpretation of what the budget means for you, your family, and your business.

If you have any questions as to how this budget impacts you and your business, please do not hesitate to contact your local Bentleys advisor.