‘There’s going to be a reckoning’: Post-pandemic spending surges with no sign of end

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While money is flooding back into the budget, it’s being spent almost as quickly. Analysts say without tax changes, spending as a share of GDP will remain elevated. auspol Budget2022

Hundreds of billions of dollars worth of spending has been permanently embedded in the federal budget with more to come, prompting warnings whoever wins the upcoming federal election will have to drive up taxes or slash expenditure in politically contentious areas.

Total payments made by the government in 2022-23 are expected to reach $628.5 billion, a $33.1 billion increase on what had been forecast in last year’s budget and $53.6 billion up from what Mr Frydenberg predicted in his 2020 budget. He said the budget was a social contract with voters to provide important services. The cost of those services was growing.

Mr Frydenberg, speaking to the National Press Club, said while there were ongoing deficits, increasing the size of the economy would bring them down.James Brickwood

 

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Josh and the Libs are getting rid of Low and Middle Income Tax Offset (LMITO) from July 1st.

One or two years you can have a splurge just to make you feel human.

Liberal Senator reports:

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