Latest news with #KatyGallagher
The Age
3 days ago
- Business
- The Age
Budget $5 billion better off thanks to bigger tax scoop
Australians paying more income tax than expected last month have helped deliver a $5 billion improvement to the federal budget's bottom line as the government looks to wrangle the nation's finances into a better position. The latest monthly financial statements, released by Finance Minister Katy Gallagher on Friday, showed the budget remained in a $19.2 billion deficit – but was better placed in the 12 months to April than the $24 billion deficit projected for the same period at the federal budget. Treasurer Jim Chalmers said in March that the budget would be in deficit for the next decade after delivering surpluses in the two prior years, drawing ire from the Coalition even though the opposition's costings revealed towards the end of the campaign that its policies would sink the bottom line by $7.9 billion more in the first two years. But after winning an overwhelming majority at the election, Labor is under pressure to make difficult decisions aimed at bolstering the budget as the country faces structural issues such as an ageing population that will require further spending in health and aged care. The latest improvement to the budget since March was driven by a $3.9 billion larger tax collection than anticipated and about $850 million less in payments made by the government. Loading The government's coffers were topped up by about $3 billion in additional company tax, $1 billion in additional superannuation fund taxes and more than $1 billion in additional tax collected from individuals. This was partly offset by lower collections of some other taxes, including excise duty, luxury car tax and the wine equalisation tax. Higher income tax collections were likely driven by higher wages and company profits. Wages rose 3.4 per cent in the 12 months to the March quarter, according to the Australian Bureau of Statistics, outpacing price growth, which increased 2.4 per cent. Outlays from the government also came in smaller than expected, driven by about $300 million less in payments made for grants and subsidies, $1.5 billion less paid for goods and services associated with the government's operations, and a $100 million smaller interest bill. This was partly offset by increases in other payments such as $300 million more in personal benefit payments such as the age pension, JobSeeker and disability support pension.
Sydney Morning Herald
3 days ago
- Business
- Sydney Morning Herald
Budget $5 billion better off thanks to bigger tax scoop
Australians paying more income tax than expected last month have helped deliver a $5 billion improvement to the federal budget's bottom line as the government looks to wrangle the nation's finances into a better position. The latest monthly financial statements, released by Finance Minister Katy Gallagher on Friday, showed the budget remained in a $19.2 billion deficit – but was better placed in the 12 months to April than the $24 billion deficit projected for the same period at the federal budget. Treasurer Jim Chalmers said in March that the budget would be in deficit for the next decade after delivering surpluses in the two prior years, drawing ire from the Coalition even though the opposition's costings revealed towards the end of the campaign that its policies would sink the bottom line by $7.9 billion more in the first two years. But after winning an overwhelming majority at the election, Labor is under pressure to make difficult decisions aimed at bolstering the budget as the country faces structural issues such as an ageing population that will require further spending in health and aged care. The latest improvement to the budget since March was driven by a $3.9 billion larger tax collection than anticipated and about $850 million less in payments made by the government. Loading The government's coffers were topped up by about $3 billion in additional company tax, $1 billion in additional superannuation fund taxes and more than $1 billion in additional tax collected from individuals. This was partly offset by lower collections of some other taxes, including excise duty, luxury car tax and the wine equalisation tax. Higher income tax collections were likely driven by higher wages and company profits. Wages rose 3.4 per cent in the 12 months to the March quarter, according to the Australian Bureau of Statistics, outpacing price growth, which increased 2.4 per cent. Outlays from the government also came in smaller than expected, driven by about $300 million less in payments made for grants and subsidies, $1.5 billion less paid for goods and services associated with the government's operations, and a $100 million smaller interest bill. This was partly offset by increases in other payments such as $300 million more in personal benefit payments such as the age pension, JobSeeker and disability support pension.
7NEWS
20-05-2025
- Business
- 7NEWS
Interest rates: Reserve Bank slashes cash rate by 0.25 per cent at May meeting
Millions of Australian homeowners juggling high living costs are set for mortgage relief after the Reserve Bank slashed the cash rate at its May meeting. The RBA's monetary policy board trimmed the rate by 25 basis points to 3.85 per cent, the first time it has been below 4 per cent in two years. If the banks pass the cuts on in full, borrowers on a variable rate with a $600,000 loan could see their monthly repayments drop by $91. Tuesday's dial shift down from 4.1 per cent is the second time time in 2025 the RBA has trimmed the cash rate. The first was in February when it announced its first cut in four years. Economists and financial markets had tipped a rate cut, given inflation for the March quarter (2.4 per cent) and underlying inflation (2.9 per cent) were within the Reserve Bank's target band of 2 per cent to 3 per cent. Finance Minister Katy Gallagher said earlier on Tuesday that homeowners would be watching the bank's decision closely, adding that a fall in inflation levels was a positive sign. 'We know inflation has come back into band ... and that is a welcome progress that has been made over the past two years,' she told ABC TV. 'We know that has been hard for households.' Tuesday's cut, and the chance of more this year, is likely to stimulate homebuyer activity and could potentially push up property prices. Some Australian savers say they are nervous their diligent actions and sacrifices could be for nothing if they their home dream is pushed further out of reach.
Perth Now
20-05-2025
- Business
- Perth Now
Big call on future of energy bill rebate
Any extension to Labor's energy bill rebate will be considered budget-by-budget, two key ministers have said. The Albanese government extended its signature cost-of-living relief measure for another six months in March, running the popular policy out until the end of 2025 at a cost of $3.5 billion. But whether it would be continued after that has been unclear. Katy Gallagher on Tuesday could not guarantee a continuation but said the government would 'always look at how we can help people'. Finance Minister Katy Gallagher says the energy rebate will be considered budget-by-budget. NewsWire / Martin Ollman Credit: News Corp Australia 'We'll look at them each budget,' the Finance Minister told Nine. 'We've needed to provide cost of living relief. But in that sense, it's not an ongoing payment, which is why we've extended it for six months. 'But we always look at how we can help people with cost of living pressures in every budget.' Meanwhile, Amanda Rishworth — who was social services minister before being handed the workplace relations portfolio in last week's cabinet reshuffle — reaffirmed the Albanese government's 'election commitment was to have energy rebates going up until December'. Workplace Relations Minister Amanda Rishworth says the Albanese government is committed to extending its rebate until the end of 2025. NewsWire / Martin Ollman Credit: News Corp Australia 'Of course, we will look at every budget and look at what support we can provide,' Ms Rishworth told the network. 'It's part of a range of cost of living support put in place, things like rent assistance, things like energy bill relief, cheaper medicines. 'Every budget round, we go and have a look at what extra support we can give. And energy rebates are no different.' Labor halved the rebate in its March extensions, cutting it from $300 to $150 for households and small businesses. More to come.
West Australian
20-05-2025
- Business
- West Australian
Labor to look at energy bill rebate budget-by-budget
Any extension to Labor's energy bill rebate will be considered budget-by-budget, two key ministers have said. The Albanese government extended its signature cost-of-living relief measure for another six months in March, running the popular policy out until the end of 2025 at a cost of $3.5 billion. But whether it would be continued after that has been unclear. Katy Gallagher on Tuesday could not guarantee a continuation but said the government would 'always look at how we can help people'. 'We'll look at them each budget,' the Finance Minister told Nine. 'We've needed to provide cost of living relief. But in that sense, it's not an ongoing payment, which is why we've extended it for six months. 'But we always look at how we can help people with cost of living pressures in every budget.' Meanwhile, Amanda Rishworth — who was social services minister before being handed the workplace relations portfolio in last week's cabinet reshuffle — reaffirmed the Albanese government's 'election commitment was to have energy rebates going up until December'. 'Of course, we will look at every budget and look at what support we can provide,' Ms Rishworth told the network. 'It's part of a range of cost of living support put in place, things like rent assistance, things like energy bill relief, cheaper medicines. 'Every budget round, we go and have a look at what extra support we can give. And energy rebates are no different.' Labor halved the rebate in its March extensions, cutting it from $300 to $150 for households and small businesses. More to come.
