Breaking down the Federal Budget

Thursday, March 31, 2022 10:32 am
Reading Time: < 1 minute

Elson Goh, from EG Financial Services, joined Mike to help breakdown the federal budget.

The amount of debt has increased. In 2012 we were on 10% of GDP (gross domestic product) which has increased to 25% of GDP. It is being forecasted that by 2025 it will reach 45% of GDP. “From a financial planning perspective why is there a huge increase in debt over a short period of time? Overall the fact that we don’t have big major promises is good so we can focus on paying down the debt.”

Over 10 million people will receive a $420 cost of living tax offset. Low and middle income tax offset has also increased. Single income households will receive $1,500 and dual income households will receive up to $3000. The government is injecting confidence back and get the economy rolling. “The cash on hand is a signal that you have money spend it.”  Fuel tax will also be cut by 22 cents for 6 months. “Having that constant reminder that the government is doing something reduce your cost of living. I think it does help.”

For a further explanation of the Federal Budget, have a listen to the full conversation with Elson.

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