Archive for the Economic Commentary Category

Federal Budget 2017 Getting the right balance

Treasurer Scott Morrison’s message to Australian’s is that the Coalition’s government is trying to strike a balance between positive measures to promote economic activity such as increased spending on infrastructure and housing, while offsetting this with cuts to recurrent spending on welfare, universities, and elsewhere.

Apart from the ‘bank levy’ on the four major trading banks & Macquarie Bank, the government has increased the Medicare Levy from 2% to 2.5% to ensure the National Disability Insurance Scheme is fully funded. There is an admission by the government that it’s (politically unacceptable) budget ‘zombie’ savings from 2014 will never be passed by the Senate, leaving no alternative other than raising taxes.

You will be relieved to know there has been no further tinkering with the superannuation system other than to create a quasi ‘first home saver scheme’ within superannuation for first home buyers.

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Federal Budget 2016 Blueprint for an election

With a federal election due to be called as early as this week, Treasurer Scott Morrison has delivered a budget that aims to strike a balance between positive measures to stimulate economic activity and measures to wind back some superannuation tax concessions.  The consistent message the government is delivering is based on ‘jobs and growth’ and ‘living within our means’

On the whole he has succeeded, but we the people will have a chance to deliver our verdict at the ballot box as early as July 2.

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Economic & Market Review February 2015

As we enter the 2015 calendar year, global economic growth on the whole is improving and the world’s debtor nations are getting better control of their budget deficits and national debt – albeit that the actual debt pile is still growing!

The world’s most important economy remains the US economy; whatever happens in the US economy and its financial markets directly affects not only our Australian markets but capital markets in every region of the world.  <<Read more>>

Economic & Market Review March 2012

Much seems to have changed since our last economic commentary in early January. Greece dropped some of its debt burden and most major central banks in the world loosened the monetary strings further. In the US the macroeconomic data for December, January, and February was surprisingly positive which has had a flow on effect to global equity markets.

Yet, under the surface, things are not so different. <<Read more>>

Economic & Market Review January 2012

Through the second half of 2011 markets one again focused on the possibility of a ‘GFC Mark II’ due to the sovereign debt issues faced by many of the members of the European Union

Fears not only focused on the potential default of a debtor nation (such as Greece or Ireland) but the potential for serious ‘contagion’ by other nations including Italy, Spain, Portugal and to a lesser extent France.  <<Read more>>