Jim Chalmers federal budget: Chalmers locks in business tax breaks to help Made in Australia

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The budget will contain tax breaks for investors to turbocharge the government’s Future Made in Australia Act, Jim Chalmers has confirmed.

Act, Jim Chalmers has confirmed, as the government continues to insist the policy is about facilitating private investment, not supplanting it., Dr Chalmers said the business tax breaks, which are expected to be in the form of an investment allowance, would qualify as a reform.Alex Ellinghausen

“The budget will balance the cost-of-living help in the here and now – a tax cut for every Australian taxpayer – with our responsibilities to the future, and the tax system does have a role to play there. There’ll be some other tax changes as well.“In all of the budgets we’ve done so far, there has been modest but meaningful tax reform and that’s because I believe in doing these things in a sequenced and orderly and methodical way, and people should expect to see more of that on Tuesday.

Last week, Dr Chalmers announced a set of changes to streamline foreign investment. The measures were aimed in large part to work alongside the tax incentives to lure capital for projects and ventures which will qualify under the Future Made in Australia Act.The act, which is Australia’s response to America’s Inflation Reduction Act, will consist of government grants, loans and equity stakes to help kick-start new industries in green technology and advanced manufacturing.

 

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