Australian budget

Victoria’s financial situation is dire, as projections indicate that the state’s debt will increase from $155.5 billion to $194 billion by FY29.

Credit ratings agency S&P notes that the combined budget deficits of Australia’s state and federal governments total $52 billion, while the net debt now exceeds 60% of the country’s GDP.

Liberal MP Garth Hamilton has called for sweeping changes to the tax system, arguing that it needs to be inclusive and support modern families.

According to The Guardian, Australia’s tobacco excise rate has tripled in the past decade, from 46c to $1.40 per cigarette, accounting for $28 of the average $40 price for a packet of 20 cigarettes.

Modelling undertaken by Tulipwood Economics on behalf of the Council of Small Business Organisations of Australia suggests that reducing the sector’s tax take could significantly boost economic activity.

The Productivity Commission (PC) recently announced a review of the corporate tax system, with the PC expected to release a draft report in late July and its final recommendations in December.

The Australian Bureau of Statistics (ABS) published data last month revealing that Victorians pay the highest state and local taxes in the country. Victorian state and local government taxes were $6,348 per capita in 2023-24, $654 (11.5%) higher than the state and territory average.

According to the Australian Bureau of Statistics (ABS), Victorians pay the highest state and local taxes in the nation.

Coalition transport spokesperson Bridget McKenzie floated on Sunday, working with state governments on a road user charge after arguing that tax breaks for electric vehicle (EV) owners are being subsidised by internal combustion engine (ICE) car drivers.

Electric vehicles (EVs) receive large subsidies in Australia. First, the Fringe Benefits Tax (FBT) exemption for battery EVs and plug-in hybrids (PHEVs) is estimated to cost the federal budget more than $550 million in lost tax revenue each year.

Electric vehicles (EVs) are massively subsidised in Australia. First, more than $550 million of tax revenue is estimated to be lost annually due to the Fringe Benefits Tax (FBT) exemption for battery EVs and plug-in hybrids (PHEVs); however, the FBT exemptions for PHEVs ended on 1 April 2025.

Electric vehicles have been heavily subsidised in Australia. A recent analysis by the Institute of Public Accountants estimated that the federal budget has lost approximately $564 million annually in tax revenue due to the Fringe Benefits Tax (FBT) exemption for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs).

The Council of Small Business Organisations Australia (COSBOA) launched a campaign on Monday, calling on Labor and the Coalition to lower the company tax rate from 25% to 20% for the 2.6 million businesses with an annual turnover of less than $20 million.

Tuesday’s federal budget revealed that the cost of the National Disability Insurance Scheme (NDIS) will reach $50.8 billion next financial year, surpassing the $51 billion allocated to the defence budget.

Tuesday’s federal budget included the following explanation of how the decline in tobacco excise has resulted in the loss of billions of dollars in revenue.

Liberal leader Peter Dutton has thrown a cost-of-living Hail Mary at voters, promising to halve the rate of fuel excise for a year, which would cost the federal budget $6 billion.

CBA’s excellent economics team has provided a comprehensive analysis of the federal budget.

Recall that the 2023-24 Victorian Budget expected the federal government to provide “a matching contribution” to the first stage of its Suburban Rail Loop (SRL) project.

I have repeatedly labelled the Australia-United States Free Trade Agreement (AUSFTA) a terrible deal for Australia that massively favours the US and disadvantages Australia.

The Australian Greens have urged the federal government to pass several flagship measures before the federal election in order to “Dutton-proof” them.

Over the weekend, veteran budget watcher Chris Richardson published a stinging critique of Australia’s “third world” tax system, which punishes workers and collects too little tax from efficient sources.

Institute of Public Accountants senior tax adviser Tony Greco estimated the federal government is losing around $564 million annually of tax revenue due to the Fringe Benefits Tax (FBT) exemption for certain battery electric vehicles (BEVs) and plug-in hybrids (PHEVs).

Deloitte Access Economics released its Budget Monitor, which estimates an underlying cash deficit of $26.1 billion in 2024-25, $0.8 billion above the expected outcome in the 2024-25 Mid-Year Economic and Fiscal Outlook (MYEFO).