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flag Australia’s business investment surged, driven by IT and data centre spending, boosting growth forecasts despite rising deficits and calls for tax reform.

flag Australia’s business investment is growing faster than expected, with IT and data centre spending nearly doubling to $2.8 billion in the September quarter, driving a projected 3% growth in 2024/25. flag Treasurer Jim Chalmers credited Labor’s policies for the rebound, citing lower financing costs and strong demand, though the long-term impact of AI-driven investment remains uncertain. flag Despite this progress, the federal deficit is forecast to reach $44.6 billion by 2028/29, with the budget not balanced until 2035/36. flag Experts urge tax reforms, including raising the GST and introducing an inheritance tax, to improve fiscal sustainability. flag Rising in-kind spending on childcare and the NDIS has pushed government expenditure to its highest share of GDP in four decades, reducing reliance on means-tested welfare, partly due to lower unemployment and stronger superannuation. flag The government is working on reforms to ensure the NDIS’s long-term viability.

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