The BGA Australia Team, led by Managing Director Michael “Mick” McNeill, wrote an update to clients on the recently released new Australian budget.


  • The Albanese government has delivered a budget aimed at reducing cost-of-living pressures and investing in social welfare while providing incentives for industry to invest in sectors poised for long-term growth, such as defense, clean energy and critical minerals. While economic growth is expected to slow, unemployment will likely remain low, and real wages growth is forecast for 2023-24.
  • Despite slowing consumer spending following interest rate increases, the economy is resilient, and business conditions are positive. Supply chain pressures have eased, and an increase in immigration is expected to bolster the labor market.


  • The government is determined to help Australia’s critical minerals sector build supply chains, attract international investment and transition to net-zero carbon emissions. AUD 80 million ($54.1 million) will be provided over four years to support international engagement, project facilitation and policy development.
  • The budget forecasts an AUD 4.2 billion ($2.8 billion) surplus from 2022-23, 0.2 percent of the gross domestic product (GDP), and a deficit of AUD 13.9 billion ($9.4 billion), 0.5 percent of GDP, from 2023-24. Gross debt as a share of the economy is expected to peak at 36.5 percent of GDP from 2025-26.


  • Corporate Australia has renewed its calls for measures that will attract investment and lift productivity. Labor’s new budget therefore attempts to reconcile the need to mitigate cost-of-living concerns with growing calls for an improved business environment.
  • The government is seeking industry collaboration to drive defense and AUKUS-related initiatives. The budget projects AUD 4.2 billion ($2.8 billion) over 10 years to support the establishment and operation of a new agency to manage Australia’s nuclear submarine program.

We will continue to keep you updated on developments in Australia as they occur. If you have any questions or comments, please contact BGA Australia Managing Director Michael “Mick” McNeill at