Budget 2022, catalyst to faster resurgence?
Team Veye | 03-Apr-2022
Federal Budget in 2022 was presented in the background of just too many concerns occurring simultaneously.
The rise in inflation, spreading of new omicron variant and an environment of continuing economic uncertainty were followed by the currently ongoing Russia-Ukraine crisis.
The Australian economy has recovered strongly and is set to return to pre-pandemic levels nine months earlier than expected. Its economy has grown faster than any of its peers. Nominal GDP likely to increase 10.75 per cent, around double the normal rate.
The unemployment rate’s recovery is expected to be five times faster than the 1990s recession. The Government's Economic and Fiscal Strategy will secure the economic recovery by supporting strong and sustainable private sector led growth and job creation to drive the unemployment rate down to pre-crisis levels or lower.
The strength in Australian economy has prompted the Government to bring about short term cost of living measures which includes a temporary fuel excise cut, one off payments of $250 to eligible recipients and an increase of $420 to the Low-to-Middle-Income Tax Offset.
The budget besides making long term commitments for defence, cybersecurity and regional infrastructure is also laying the foundations for Australia to be a leading digital economy and society by 2030.
During the pandemic Australians adopted digital technologies more swiftly than ever before. To build on this momentum, the government is making significant investments in digital infrastructure. The Government also announced 120% tax deduction for small businesses to upskill employees and encourage digital adoption. It is committing $111.3 million to accelerate the roll out of the Consumer Data Right (CDR) across the economy. The CDR supports its intent to be a leading digital economy by 2030, creating new data-driven jobs, products and services and empowering consumers to benefit from their data held by businesses.
Notwithstanding Russia-Ukraine crisis and resulting inflation pressures, Australian economy’s resilience throughout the pandemic are pointers to continuation of strong economic recovery with broad based growth in consumption, investment and exports alongside a stronger labour market, rising wages, income tax cuts, and stronger household income growth.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.