Treasurer Jim Chalmers unveiled a budget update, saving taxpayers $6.7 billion by capping a home battery subsidy program. Initially costing $2.3 billion, the programs cost surged to $13.9 billion due to high uptake. The governments decision to cap the scheme reduced its cost to $7.2 billion over four years. Despite the initial cost blowout, the governments actions led to a net reduction of $2.2 billion in cumulative deficits. However, independent economist Chris Richardson noted that accurate costing from the start would have shown a negative impact on the budget. The budget forecast improved by $8.4 billion due to higher-than-expected tax collections, but unavoidable spending increases offset this gain. The deficit is expected to worsen beyond the four-year estimates due to higher interest, childcare, and health costs. The budget projects to narrow its deficit to 0.1% of GDP by 2035-2036, relying on higher income taxes and controlled spending growth.

The Daily News Now! - Every city. Every story. Powered by AI.

---

Hosted on Acast. See acast.com/privacy for more information.