Asia St: What to Watch in Australia’s New Budget

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What to Watch in Australia’s New Budget

March 18, 2022

Australian Prime Minister Scott Morrison and Foreign Minister Marise Payne (Photo Credit: Scott Morrison Twitter Account).

BGA’s Australia team, led by Managing Director Fergus Hanson, wrote an update on Australia’s coming federal budget. The update examined the context for the budget, its significance and potential implications for companies and other stakeholders.

Context

  • Australian Treasurer Josh Frydenberg will present a federal budget on March 29 that will rein in crisis-level spending and ease cost-of-living pressures.
  • The budget comes as the government of Prime Minister Scott Morrison is trailing badly in the polls and facing an uncertain economic environment.

Significance

  • The 2022-2023 budget will avoid contentious economic reforms, with a focus on priorities such as supporting households amid rising fuel prices and inflation and look to keep unemployment low.
  • The underlying aim of the budget is laying the groundwork for Morrison to call an election around early April for a May 14 or 21 poll date.

Implications

  • The budget will be heavily tinged by national security imperatives, and businesses should look for opportunities in defense, information and communication technology (ICT), manufacturing and research and development. One area the government will seek to address is skills shortages in critical areas, such as traditional trades and the tech sector.
  • While mindful of the short-term concerns of middle Australia, the budget will display long-term thinking in areas such as critical technologies and advanced manufacturing to showcase the Liberal-National government’s new ideas.

BGA will continue to monitor developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Fergus Hanson at fhanson@bowergroupasia.com.