Budget 2019: The economy
As part of our Budget 2019 wrap-up, we look at where revenue comes from for the Budget and we consider what might impact the Government's ability to deliver its measures.
Where the money comes from
Source: 2019-20 Budget: Appendix B: Revenue and spending
Return to surplus
The jewel in the Government's crown is the anticipated $7.1bn budget surplus in 2019-20. The Budget sets out:
· $11bn surplus in 2020-21
· $17.8bn in 2021-22
· $9.2bn in 2022-23
leading to the elimination of Government debt by 2029-30.
Growth in trading partners uncertain
The Budget notes continuing "uncertainties" around trade tensions, emerging market debt vulnerabilities and geopolitical issues.
With total trade covered by free trade agreements rising from around 26% to around 70% in the last 5 ½ years, you can see why there has been a flurry of activity to formalise trade terms with our regional and international partners.
Domestic growth solid but tempered
Australia's economy is forecast to grow by 2¾% in 2019-20 and 2020-21. Jobs growth and economic stability is tempered by severe weather events and an anticipated decline in residential construction activity and house prices.
Of course, until an election is won, we can't say which measures will come into play, however if you have concerns or questions about how these measures may impact you or your business, please contact us in 02 9957 4033.
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.