Next week's federal budget will once again collect more in tax than expected, raking in an extra $25 billion over the five-year budget forecasting period.
Next week's federal budget will once again collect more in tax than expected, raking in an extra $25 billion over the five-year budget forecasting period.
Just like in those updates, there are two main reasons: high commodity prices leading to a high corporate tax take, and a stronger-than-expected economy leading to a high income tax take. He said Treasury had consistently underestimated the tax take because its estimates of the size of the economy and commodity prices were deliberately conservative.
This was in part because the government 'banked' the majority of the windfalls against the budget line, although it still approved more than $70 billion.But in recent months he has downplayed the likelihood of another surplus in 2024 and hinted the government may not bank as much of the windfall as in its previous budgets.
Inflation was 3.6 per cent in the year to March, only slightly higher than the market expectation of 3.5 per cent and lower than the previous quarter. "Like it or not, inflation is the everything of this budget," he said. "It isn't yet where it needs to be, and the path ahead is tricky.""The budget needs to focus on avoiding poking the inflationary bear … The best solution to the cost of living crisis is to bring inflation down – that gives breathing space for wages to catch up, it allows interest rates to fall, and it limits the pain for people driven into higher tax brackets.
"There's no shortage of opinions at this time … Often it's wrong, this sort of commentary you get at budget time." "When you look at the spending in the budget, I think we should be looking at not only the aggregate spending, but the quality and composition of that spending," she said.
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