Pre-Budget Submission 2024-25

It has been a difficult year for both Australian businesses and consumers. High inflation, rising interest rates and a very tight labour market substantially increased the cost of doing business and cost of living pressures. Despite the steady increase in costs, businesses have had little opportunity to pass these on through higher prices. With margins shrinking, business profits fell 11 percent in the year to June 2023 and insolvencies are on the rise. For consumers, with falling real wages and increasing mortgage rates, real household disposable income fell 3 per cent in 2022-23.