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Treasurer offered cash for childcare and housing, but the main concern was to avoid stoking inflation, says Gavan Ord of CPA Australia.
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Budget: swings and roundabouts for families, small business
31 October 2022
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Winners were few in Labor’s first budget and small business lucked out as the Treasurer kept a wary eye on inflation, says CPA Australia senior policy manager Gavan Ord.
Speaking on the latest Accountants Daily podcast, Mr Ord said the objective was to avoid large stimulus or cost-of-living measures because of their potential to increase prices, with the RBA widely expected to raise rates by at least 25 basis points on 1 November.
“That's what their objective was and I think in the main they've done that,” he said.
The government aimed its largest spending initiatives at childcare, with $4.7 billion over four years to increase the subsidy and extend eligibility, and housing, with $10 billion committed to the Housing Australia Future Fund.
“If you look at winners, probably young families with kids in childcare could be considered a winner with the income thresholds been extended and a small increase in payment,” Mr Ord said.
“Housing you could say over the longer term are winners. Under the so called Housing Accord they've got an aspiration to build 1 million new houses by the end of the decade.
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“So if you're in the property construction industry while you're doing it tough at the moment, the medium to long term outlook looks pretty positive, with the government tipping in with super funds to build a lot of houses.”
However, Mr Ord said the budget served up little for small business, with $15 million over two years to extend a debt helpline and mental health program.
“The sector will be disappointed in this budget – there was wasn't really much in there, the odd announcement for example on mental health support and business debt helplines.
“Which are all good, but to us they're very much at the end, like businesses in almost failure territory.
“To us, they really need to have more focus on the preventative side. You don't really want businesses to have to call debt helplines. How could you improve the policies so that you actually prevent that in the first place?”
He said incentives for businesses to seek professional advice, such as a scheme in Victoria, would “swing the pendulum and policy to the preventive medicine side”.
“Hopefully there'll be more for small business in the next May budget. You wouldn't say small business is a loser, but you'd have to say small businesses disappointed with what came out of this budget.”
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