Federal Budget 2018-19
The Government is very keen to push its economic credibility in this Budget - to the point that the Budget website is very glossy with a lot of 'good news' messages:
- An economy in its 27th year of growth
- Keeping taxes as a share of GDP within the 23.9% cap
- No longer borrowing to fund everyday spending from 2018-19
- Government payments as a share of GDP return to below the 30-year average of 24.8% in 2020-21, the first time since 2012-13.
- Forecast budget surplus in 2021-22
The budget forecasts real GDP at a generous 3% from 2018-19. Total business investment is expected to be 4.5% in the current year (2017-18), before reducing back to 3% next year and then rising again to 4.5%.
CPI is expected to increase marginally from 2% to 2.5% in 2019-20.
Employment is flat. The wage price index is expected to be 2.25% this year before slowly increasing to 4.75% in 2019-20. Unemployment is expected to only reduce marginally to 5.25% from the current 5.5%. The participation rate is also not expected to increase (65.5%).
Many commentators have already pointed out that the budget forecasts the economy to have a quite remarkable growth spurt from its recently achieved gains.
Here's what's in the budget for:
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