Earlier this month, the Parliamentary Budget Office (PBO) released an analysis purporting to show how changes in the volume of NOM would impact the federal budget balance:
The PBO claims that the federal budget balance would improve by around $80.6 billion over the medium term under the scenario of ‘Higher’ NOM (+40,000 migrants), while a scenario of ‘Lower’ NOM (-40,000 migrants) results in a deterioration of around $79.1 billion:
“The improvement under a higher NOM is primarily driven by higher tax receipts, particularly personal income taxes. Migration also supports company tax, superannuation fund taxes and other tax streams, as well as fees, charges and broader economic activity”, the PBO says.
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