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Budget 2022 at a glance: The key numbers you need to know

budget spending
Australia will clock a budget deficit of $78 billion in 2022/2. (Source: Getty)

The promise of returning to surplus is well and truly dead and buried. A decade of deficits now awaits.

After leading the nation through the Covid-19 pandemic, the Liberal Party is no longer the self-appointed frugal side of politics and small government.

Here are some of the key economic figures and forecasts from the 2021-22 federal budget:

  • Australia will clock a budget deficit of $78 billion in 2022/23. That's down from a $161 deficit last year and down from $214 billion in October 2020 Budget.

  • Commonwealth net debt is set to rise to $714.9 billion – that equates to more than 31.1 per cent of GDP next year in 2022/23.

  • The government's debt is tipped to peak at $1.16 trillion in 2025-26.

  • Economic growth is forecast to rise by 3.5 per cent in 2022/23.

  • Inflation is projected to remain tamed, peaking at 4 per cent this year, before going lower the following two years, down to 2.75 per cent in 2023-24.

  • The unemployment rate is forecast to be 3.75 per cent next year. If that happens, it will be the first time in half a century.

  • The Wage Price Index – an aggregate of the nation's wages – is projected to jump by 3.25 per cent next year.

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Cost of living tax relief

  • $420 cost of living tax offset for low and middle-income earners, and a $250 cost of living payment for pensioners, welfare recipients, veterans and concession card holders.

  • Halving petrol and diesel excise for six months, delivering a saving of $300 for the average household.

  • From July 1, the PBS Safety Net threshold to be reduced for general and concessional patients lowering out-of-pocket costs for medicines for 2.4 million people.

Tax relief for business

  • Support for small businesses to adopt digital technology and train and upskill employees with new tax incentives.

  • $2.8 billion for apprentices and $2.2 billion to support Australian industries and universities to develop innovative companies and products.

A cash splash for the regions

  • $21 billion committed for regional transport, water and communications infrastructure.

Health spending

  • $6 billion extra for Covid-19 response including a winter response plan.

For women

  • $1.3 billion to support delivery of the national plan to end violence against women and children 2022-32.

  • $330.6 million for national womens' health strategy.

Housing

  • National Housing Finance and Investment Corporation to get a $2 billion top-up to support 10,000 more affordable homes.

Defence and National Security

  • $38 billion by 2040 to lift the defence workforce by 18,500 personnel.

  • $270 billion in defence capability investment through to the end of the decade.

  • $9.9 billion over 10 years to double the size and improve the capability of top cyber agency, the Australian Signals Directorate.

Infrastructure

  • $17.9 billion of priority road and rail infrastructure as part of a $120 billion 10-year pipeline of work.

Education

  • $228.5 million extra funding, covering an extension of national school reform funding and Indigenous board school grants.

Aged Care

  • $468.3 million extra to implement royal commission recommendations.

  • $345.7 million for residential aged care pharmacy services.

Indigenous communities

  • $1.5 billion over five years for Indigenous Australians in addition to the existing $6.7 billion Indigenous Advancement Strategy.

The environment

  • Extra $1 billion for Great Barrier Reef.

Disability

  • $39.4 billion for National Disability Insurance Scheme.

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