2022 Federal Budget and Vigilance

The Albanese government handed down its first budget this week which was accompanied by warnings of rising inflation and the pressures attributed to the substantial impact of flooding including increasing costs of living pressures.

QFF welcomes the $61.6M to bolster biosecurity, $20.8M in drought preparedness and $46.7M into traceability but is concerned about future water infrastructure investment and policy directions.

While the full impact on the cost of living is not yet clear, billions of dollars are expected to go towards recovery from recent flood events in Victoria and NSW and the government has ruled out cost-of-living relief so as not to risk contributing to more inflation and further interest rate rises.

Whilst the final budget outcome for 2021-22 was better than expected off the back of strong commodity prices, the Albanese government has described the 2022-23 budget as a tough one that will address a blunt and brutal economic landscape focusing on inflation, the world economy and spending pressures.

With National debt sitting at $1T and 45% of GDP, annual inflation rising to over 6% in the June quarter and interest rates continuing to climb, it's fair to say we are all expecting to tighten our belts and exercise financial care over the coming years.

Just prior to the handing down of the Federal budget, the Queensland government reported a whopping $2.8B in “unforeseen expenditure” for 2021-22 with 14 departments and agencies overspending what they had been allocated for the financial year. Overspends were reported across numerous infrastructure projects, including cross-river rail.

As we enter into potentially bleak economic times and an era of significant infrastructure spending in Queensland with the recently announced Energy Plan program of works and the 2032 Olympics, governments at all levels need to be vigilant when it comes to sound financial management.

Governments must be accountable and pull their weight when it comes to economic responsibility. Farmers across Queensland are grappling with escalating input costs, workforce shortages and ongoing natural disasters and are working incredibly hard to remain viable. The government needs to do the same.