What to expect from next week's MYEFO
Actions speak louder than words, even in politics. But with cost-of-living relief all but ruled out ahead of next week’s MYEFO, Treasurer Jim Chalmers may have to do the heavy lifting with his language alone.
Economists expect Wednesday’s Mid-Year Economic and Fiscal Outlook (MYEFO) will reveal that the government has about $9 or $10 billion more than expected, due to higher revenues from income and company tax. But they overwhelmingly think there’s going to be little action with this extra cash.
Instead, the focus will firstly be on a full new set of forecasts for the state of the nation, including population growth and employment. It will then be on Treasurer Jim Chalmers' ability to inspire confidence in his government’s economic plan amid a cost of living crisis and revelations of a sluggish 0.2% GDP growth in the September quarter.
The government will also publish its much-awaited migration strategy on Monday. Government insiders say one of the challenges in formulating the response to former public service chief Martin Parkinson’s review into the migration system is that the landscape has vastly changed since they ordered the review in September 2022.
Back then, the skills shortage was the main economic and political challenge, but after net migration rose to 400,000 in 2022-23, the challenges are more complex.
