While an improvement in Australia’s fiscal position for the current year is predicted, it is clear from the Federal Budget handed down by the Labor Government that for companies and corporate entities, bumpy times ahead are expected.
In an attempt to smooth out the bumps, the Budget includes a number of measures to relieve cost of living pressures and modernise our economy. Increases to the Child Care Subsidy, paid parental leave and education spending measures will hopefully go some way to improving staff shortages at least in some sectors.
From a tax perspective, the Budget contains no new taxes – there is some tinkering at the edges, but no significant tax reform measures.
There are, however, a number of revenue raising measures, most of which were announced in Labor’s Plan for a Better Future election commitment, that will have implications for corporates.