Federal Budget 2019 Paving the way to an election

While last nights’ Federal government Budget is all about playing to the Coalition’s economic strengths and setting up for the forthcoming election, it does confirm that Australia’s finances have finally turned the corner after 12 years of ongoing budget deficits.

Delivered two years earlier than originally expected back in 2017, tax receipts are now being boosted by the resources export boom – resulting from the resources investment boom that went from 2007 through to about 2017 – and has also benefited from continuing higher iron ore, LNG, coal, and other commodity export prices than was originally expected.

The increased financial flexibility as a result of returning to a budget surplus means the government can target tax relief for the lower and middle-class Australian’s impacted by slow wages growth and the rising cost of living (specifically energy bills) earlier than it otherwise might have been able to do – it just has to get re-elected to be pass the budget measures into law! <<Read More>>

Federal Budget 2018 Surge in spending ahead of Election

Last year’s message from Treasurer Scott Morrison was 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 business incentives, while offsetting this with modest cuts to previously locked in recurrent spending on welfare, universities, and elsewhere.

Last night’s Federal Budget reflects a ‘turning of the corner’ as tax receipts are now being boosted by a slowly accelerating economy, allowing for some well targeted tax relief to the mass of middle-class Australian’s impacted by slow wages growth, while also targeting a budget return to surplus a year earlier than expected (2020). <<Read more>>

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>>