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Budget 2015 | The Economy in Brief

May 2015

What is happening in the Australian economy at Budget-time? Here's a snapshot from the Government.

Deficit of $35.1bn in 2015/2016 reducing to $6.9bn by 2018/2019.

Real GDP expected to grow by a modest 2.75% in 2015/2016, which is 0.25% slower than expected 12 months ago.

  • Stronger non-mining business investment expected to drive growth in 2016/2017 to 3.25%.

Unemployment rate currently better than predicted at 6.25% but expected to push higher in 2015/2016 before falling again.

Tax receipts downgraded by $52 billion since the 2014 Budget - $20 bn a result of the iron ore spot price almost halving:

  • Iron ore investments and exports directly contributed 15% to economic growth over the last decade.
  • Australia accounts for 1/3 or world iron ore production.

Australia's major trading partners are expected to grow by 4.5% in 2015 and 2016.

Total exports expected to increase by 5% in 2015/2016 and 6.5% in 2016/2017.

Non-mining business investment has increased but remains uncommitted.

 

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Disclaimer

This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.

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