Australia

Details

  • Service: Tax, Topics, Federal Budget
  • Type: Business and industry issue
  • Date: 9/05/2013

Federal Budget 2014

Federal Budget 2014
KPMG's review of the major implications arising from the 2014 Federal Budget.

Background to the 2013 Federal Budget: Perspectives in advance 

KPMG's pre-budget forecast provided a background ahead of the 2013 Federal Budget.

This brief sets the scene for what may feature in the upcoming Federal Budget and assesses the likely implications for Australian business. 

 

Key insights

  • To avoid the fiscal trap that many countries face – the government will need to adjust its policy settings for the long term.
  • The immediate budget decline of $12 billion has not arisen from a change in projections on the expenditure side, but as a result of changes in forecast revenue.
  • The expenditure side is putting increasing pressure on Australian government budgets. The main items are health, welfare, education and defence.
  • In brief, declining revenue in the short term will need to be filled. Longer term, there is an unsustainable gap between rising costs – particularly in the area of health – and future revenues. Both the expenditure and revenue sides of this equation will need to be dealt with.
 

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If you would like to discuss the Federal Budget, our KPMG Partners are available for comment.

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