October 2022 Federal Budget: key takeaways

On 25 October 2022, Federal Treasurer Jim Chalmers introduced his - and the new Labor Government's - inaugural budget. While it may feel unusual to be talking about a Federal Budget outside of the ordinary May cycle, this timing provided an opportunity for fiscal recalibration given the volatile (and inflationary) macroeconomic environment which has set in since the election.

Although the general electorate was loud in its calls for general cost-of-living concessions, the Government was restrained insomuch as it did not offer anything new in the way of upfront cash-flow relief for households, other than those measures already announced as part of the election cycle.

Key taxation measures introduced in this Budget mean prudent corporates will need to revisit their existing financing arrangements, particularly to consider the debt and equity mix, while the expenditure measures should pique the interest of both the affordable housing and infrastructure sectors.