ECONOMICS
Treasurer talks down hopes for war-driven boost to Budget
Treasurer Jim Chalmers has hosed down speculation that his upcoming Budget will score a big revenue boost from tax reform and the Middle East war.
The conflict in Iran and closure of key a oil and gas route through the Strait of Hormuz has pushed up petroleum prices and forced inflation higher. Consumer prices surged 4.6 per cent in the 12 months to March thanks partly to petrol costs.
Higher commodity prices would be expected to bring increased company tax revenue, while inflation will over time drive bracket creep — with families pushed into higher income tax brackets as their pay keeps up with cost of living.
Top economist Chris Richardson reportedly forecast a $36 billion revenue boost from 2026 through 2030. But Dr Chalmers played down the figures in a Commonwealth Bank podcast on Thursday.