The mid-year economic and fiscal outlook (MYEFO) reveals that Australia will likely face a deficit for several years. The government has revised its economic growth forecasts, with GDP expected to grow at 1.75 percent in 2024-25, down from the previous 2 percent estimate. Household consumption is also projected to grow more slowly, at 1 percent instead of 2 percent. While wages are expected to rise 3 percent, uncertainty surrounds spending and saving patterns. Other key points include a decrease in tobacco excise receipts and a slight increase in business investment.
Figures released by Treasurer Jim Chalmers on Wednesday revealed some of the biggest pressures facing the government and Australian taxpayers, reflected in aThe mid-year economics and fiscal outlook sheds light on how the government sees the economy tracking over the next few years, and how much it intends to spend, but can also give an insight into the state of the government’s books.
While real household disposable income – the amount households have left after taxes – will still be growing as wages rise 3 per cent , there’s uncertainty about how quickly people will spend or save this additional money. The goods and services tax is set to bring in $2.1 billion more than expected thanks to consumers spending more and investing more in private dwellings.
Among the major spending increases are those in aged care, which will rise by $808 million , early childhood educator pay rises which will cost $3.6 billion over four years, and payments to see through a bipartisan deal to offer ongoing support to Western Australia which will cost the budget an extra $1.4 billion.
ECONOMY BUDGET DEFICIT AUSTRALIA TAXES
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