Budget 2022 summary – Expert accounting opinion

• Budget 2022 gets tentative thumbs up from CPA Australia
• Treasurer Jim Chalmers delivers “no surprises” budget but future vision unclear

The Federal Government has taken a “steady as she goes” approach to Budget 2022 but is yet to deliver a holistic plan to overcome the nation’s economic challenges, according to Australia’s leading professional accounting body.

“Overall, we give the budget a thumbs up. It is broadly what we expected, but leaves open the question, ‘where to next’,” said CPA Australia Senior Manager Business Policy, Gavan Ord.

“The government made it clear this is a two-part budget. That said, we were hoping they would provide us with a North Star to light the way forward. 

“This steady, no surprises approach is a good option during these turbulent times. We agree this isn’t the right time to entirely change course.

“The government delivered a bleak economic outlook, highlighting major challenges, but failed to provide certainty about its future reform priorities.

“We want the Federal Government to provide a broader vision about how the nation will navigate this difficult economic territory.

“Tonight’s budget was part one. There needs to be a long-term view of how to tackle major challenges in part two next year.”

Small business

• $15.1 million for tailored business mental health and financial counselling

“Not enough was done in this budget to help small business. Support for mental health is welcome but we need to do more to assist businesses before they reach breaking point.

“Rising inflation, higher interest rates and global disruption are challenging households and businesses. While budget concerns have constrained the Federal Government’s willingness to spend, not all support needs to be financial.

“Reducing red tape and reviewing poorly performing policies, for example, are opportunities that don’t require a pot of gold. Encouraging businesses and charities to get advice from trusted professionals is a quick and proven way to improve productivity and resilience.”

Workforce challenges

• $42.2 million to speed up visa processing and attract international talent
• Parental leave extension to 26 weeks, increasing childcare subsidies
• 20,000 additional university places

“We’re pleased to see the government maintain the momentum from the Skills and Jobs Summit in the budget.

“A campaign to attract skilled migrants is a great step to ensure Australia is destination of choice in a highly competitive global market for talent.

“We still need a multi-pronged approach to managing skills shortages in the long-term.”

Environment

• $275 million to support the Department of Climate Change, Energy and Water

“Climate change is one of the biggest issues facing Australia. Measuring the impact of budget decisions on the environment is critical.

“Investing in the public service to improve the nation’s understanding of the impacts of climate change is helpful. We hope this leads to a comprehensive Climate Change Budget Impact Statement in the next Federal Budget.”

CPA Australia’s 2022-2023 Federal Budget analysis is available here.

Media contact

Jennifer Duke, CPA Australia External Affairs Lead on +61 438 502 389 or email: [email protected].