This year’s Budget has been brought forward by one month and will be handed down on April 2nd due to 2019 being an election year. Given the timing and the news headlines, it would be acceptable to think that this Budget will likely offer a package of pre-election goodies to sweeten the deal for those undecided voters. There is sound speculation that due to strong commodity prices and employment numbers, the Budget will be in surplus for first time since 2007 and before the Global Financial Crisis.
The Budget comes at a time when Australia is facing some unique headwinds. The housing slowdown, a tighter lending regime as a result of the recent Royal Commission, stagnant wage growth, rising energy bills and lacklustre retail numbers are all having an impact on the economy and consumer confidence.
The many people who are impacted by these challenges will no doubt be listening to the 2019 Budget proposals with a finely tuned ear, hoping for some relief.
Over the weekend the newspaper and TV headlines were focused heavily on analysts’ thoughts on what may be in the Budget. Based on their discussion we can expect a large focus on tax cuts, infrastructure spending, energy policy and aged care – with an anticipated $6 billion stimulus injection into the economy.
TJL’s Financial Management team will provide a more detailed update and outline how the proposals are likely to impact you following next Tuesday’s Budget and Thursday’s Budget reply.