Relief for energy costs as Federal Government releases budget
Low cost loans for solar panels and electrification for households and business continue the push towards renewable energy
Low cost loans for solar panels and electrification for households and business continue the push towards renewable energy
Relief for household energy costs, payment increases for job seekers and a bonus tax discount to help small businesses electrify – these are just a few takeaways from the Federal Government’s 2023 budget announced by Treasurer Jim Chalmers last night.
All businesses with an annual turnover of less than $50m will be eligible for 20 percent of spending that goes towards electrification and energy efficiency, including purchasing more efficient white goods, as well as upgrading to electric heating and cooling.
In further news around energy, the Government sought to relieve cost of living pressures with their energy bill relief plan, which will lower the costs for eligible households by up to $500. Prime Minister Anthony Albanese has forecast that the measure should help lower inflation by 0.75 percent.
“This is a responsible budget,” the Prime Minister said. “What we’ve done is to take pressure off families without putting pressure on inflation.
“What we haven’t done is put cash payments that would have added to inflation.”
Households seeking to improve their energy efficiency will have access to a low interest loan, with 110,000 on offer for upgrades such as solar panels and double glazing, as well as more energy efficient appliances. The Federal Government has set aside $1b to establish the fund.
Following repeated calls for more support aimed at job seekers, the budget also includes a $40 a fortnight increase in the JobSeeker payment, which still falls short of the recommendations by the Economic Inequality taskforce. Treasurer Jim Chalmers said on ABC News Breakfast that his government had ‘done what we can’ to address the needs of job seekers.
“We’ve tried to do as much as we can without blowing the budget and adding substantially to inflationary pressures in the economy,” he said.
The budget also sought to relieve pressure on the Medicare system, tripling the bulk billing system for the most common consultations
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
China’s economic recovery isn’t gaining the momentum money managers are awaiting.
Data from China Beige Book show that the economic green shoots glimpsed in August didn’t sprout further in September. Job growth and consumer spending faltered, while orders for exports came in at the lowest level since March, according to a monthly flash survey of more than 1,300 companies the independent research firm released Thursday evening.
Consumers’ initial revenge spending after Covid restrictions eased could be waning, the results indicate, with the biggest pullbacks in food and luxury items. While travel remains a bright spot ahead of the country’s Mid-Autumn Festival, hospitality firms and chain restaurants saw a sharp decline in sales, according to the survey.
And although policy makers have shown their willingness to stabilise the property market, the data showed another month of slower sales and lower prices in both the residential and commercial sectors.
Even more troubling are the continued problems at Evergrande Group, which has scuttled a plan to restructure itself, raising the risk of a liquidation that could further destabilise the property market and hit confidence about the economy. The embattled developer said it was notified that the company’s chairman Hui Ka Yan, who is under police watch, is suspected of committing criminal offences.
Nicole Kornitzer, who manages the $750 million Buffalo International Fund (ticker: BUIIX), worries about a “recession of expectations” as confidence continues to take a hit, discouraging people and businesses from spending. Kornitzer has only a fraction of the fund’s assets in China at the moment.
Before allocating more to China, Kornitzer said, she needs to see at least a couple quarters of improvement in spending, with consumption broadening beyond travel and dining out. Signs of stabilisation in the housing market would be encouraging as well, she said.
She isn’t alone in her concern about spending. Vivian Lin Thurston, manager for William Blair’s emerging markets and China strategies, said confidence among both consumers and small- and medium-enterprises is still suffering.
“Everyone is still out and about but they don’t buy as much or buy lower-priced goods so retail sales aren’t recovering as strongly and lower-income consumers are still under pressure because their employment and income aren’t back to pre-COVID levels,” said Thurston, who just returned from a visit to China.
“A lot of small- and medium- enterprises are struggling to stay afloat and are definitely taking a wait-and-see approach on whether they can expand. A lot went out of business during Covid and aren’t back yet. So far the stimulus measures have been anemic.”
Beijing needs to do more, especially to stabilise the property sector, Thurston said. The view on the ground is that more help could come in the fourth quarter—or once the Federal Reserve is done raising rates.
The fact that the Fed is raising rates while Beijing is cutting them is already putting pressure on the renminbi. If policy makers in China wait until the Fed is done, that would alleviate one source of pressure before their fiscal stimulus adds its own.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual