The key takeaways from the 2022 Federal Budget
Key economic parameters
- Underlying cash deficit of $36.9 billion.
- Cash rate to peak at 3.35% in first half of 2023.
- $572.2 billion in net debt, equal to 23% of GDP.
- Real GDP forecast to fall by 1.75%.
- Inflation forecast to moderate to 3.5% by June 2024, down from an anticipated peak of 7.75% in December 2022.
Housing snapshot
- National Housing Accord – A new national Housing Accord which in collaboration with state and territory governments and private investors has a shared ambition to build $1 million new homes over five years from 2024. The Government will commit $350 million over five years to deliver 10,000 affordable dwellings.
- Regional First Home Buyers Guarantee Scheme – Its aim will be to encourage home ownership in regional locations. It will apply to eligible citizens and permanent residents who have lived in a regional location for more than 12 months to purchase their first home in that location with a minimum 5% deposit. It aims to reach 10,000 places per year to 30 June 2026. It will fund this by redirecting funding from the Regional Home Guarantee component of the 2022-23 March Budget measure titled Affordable Housing and Home Ownership.
- Help to Buy Scheme for affordable housing – The government will provide $324.6 million over four years from 2022-23 to establish the Help to Buy scheme to assist people on low to moderate incomes to purchase a new or existing home with an equity contribution from the government.
- Housing Australia Future Fund – $10 billion in the newly created "Housing Australia Future Fund", to be managed by the Future Fund Management Agency. Its aim will be to generate returns to fund the delivery of 30,000 social and affordable homes over five years and allocate $330 million for acute housing needs.
Small business snapshot
- Small business debt helpline – $4 million extra for the Small Business Debt Helpline operated by Financial Counselling Australia offering free, independent, confidential and impartial phone-based support to small business owners
- Tax deductions – Reaffirms the Small Business Technology Investment Boost and Small Business Skills and Training Boost tax deduction providing an extra 20% deduction.
- Mental health support for small businessowners – $10.9 million in extra funding for the New Access for Small Business Owners (NASBO) mental health support program operated by Beyond Blue, which offers free one-on-one telehealth sessions with specially trained mental health coaches providing evidence-based advice on strategies for managing stress.
- Digital solutions – $18.6 million in grants to advisory service providers to help small businesses wanting to get online to access high quality, independent advice at low cost.
- Fighting online scams – The government will provide $12.6 million over four years from 2022-23 to combat scams and online fraud to protect Australians from financial harm.
- Modernising business registers – $80.0 million in 2022-23 for the ATO and ASIC to continue design and delivery of the modernised registry platform as well as $86.2 million over four years from 2022-23 ($119.5 million over six years from 2022-23 and $15.9 million per year ongoing) for ATO and ASIC to operate and regulate the Director Identification Numbers regime and maintain ASIC's registry systems.