Treasurer Jim Chalmers faces a potential $40 billion annual budget hit over the next decade, as stagnant productivity threatens to punch a hole in tax revenue due to lower wages and business profits, economists say.
Treasury forecasts productivity growth to rebound to an improbable 1.2 per cent a year over the next decade, well above the Reserve Bank of Australia’s new lowered assumption of 0.7 per cent over the next two years.
Loading…