“Back in the Black, and Back on Track” was the call cry of the Morrison Coalition Government when delivering the 2019 Federal Budget last night.
The Government was saying it has turned the deficit ship around and now transferring to the surplus path, so there will be benefits of this surplus for all. There are to be tax cuts and increased fiscal spending. As anticipated, it was a good budget, and one clearly aimed as a pre-election one. It was an upbeat budget, with many positives features and few negatives, and certainly nothing contentious and not complex. It was a build on last year’s budget.
Remembering that there will be a Federal Election, with the date to be announced imminently, and the likely election dates being either May 11th or May 18th, so only weeks’ away! The Coalition is behind in the polls to Federal Labor so this budget is a critical play by them to reverse the present likely outcome of a Shorten Government. This budget should help the Coalition’s re-election cause versus Labor’s election campaign broadcasting increased taxes and class division. As discussed in last month’s newsletter, if Labor form the new government, based on its rhetoric to date, it will bring in increased regulation, higher taxes and an anti-wealth policies sentiment, all of which are not really conducive to encouraging investors who are, at present, enjoying the continuation in the positive global markets.
There were three main areas that the budget concentrated on being Taxation, Superannuation and Welfare. There were broad tax cuts and tax offsets announced; for superannuation, including increasing the age limit by two more years, up to age 67, where both concessional and non-concessional superannuation contributions can be made without the Work Test restriction; and for welfare recipients including an energy assistance payment for residents.
Please click here for a concise report from Macquarie Research of the 2019 Federal Budget and what it means to you. Obviously, with the looming Federal Election next month, it is uncertain just how much will get through and be legislated before then. We will need to see.
And, as always, should you have any queries on the Federal Budget or other matters please do not hesitate to contact us.