Examples of BP

Question 1

Discretionary Revenue Policy (2023-24): Tobacco Excise

Answer 1

Increased tobacco excise by 5% each year for 3 years. Starting September 2023.

Since cigarettes have an inelastic demand, people will continue buying them even at a higher price. This will increase government revenue.
AD⬆, Inflation⬆, UE⬇

Question 2

Discretionary Revenue Policy (2023-24): Instant Asset Write-off scheme

Answer 2

To encourage small businesses to invest in new equipment, there will be an Instant Asset Write-off of $20,000 for businesses with an annual turnover of less than $10m.

This is likely to increase investment spending by businesses. They’ll also hire more people.
AD⬆, Inflation⬆, UE⬇

Question 3

Discretionary Expenditure Policy (2023-24): Energy Bill Relief

Answer 3

Up to $500 bill relief for 5 million households and 1 million small businesses. Easing cost of living pressures.

Increases some households’ disposable income, and therefore increases consumption.
AD⬆, Inflation⬆, UE⬇

Question 4

Discretionary Expenditure Policy (2023-24): JobSeeker

Answer 4

An increase of JobSeeker payments by $40 fortnightly. This can ease the living costs of those who are eligible for JobSeeker.

AD⬆, Inflation⬆, UE⬆

Question 5

Discretionary Revenue Policy (2022-23): LMITO

Answer 5

Low and Middle-Income Tax Offset, a cost of living relief. It was increased by $420 from the previous year, leading to an offset of up to $1500 for singles, and $3000 for households.

This eases the cost of living pressures, increases some households’ disposable income, and therefore increases consumption.
AD⬆, Inflation⬆, UE⬇

Question 6

Discretionary Expenditure Policy (2022-23): Cost Of Living Payment

Answer 6

The government announced a one-off payment of $250 to various government welfare recipients and concession card holders.

This can increase the disposable income of recipients, who will then spend more.
AD⬆, Inflation⬆, UE⬇