Highlights of sponsor coverage of the 2019/20 Federal Budget.
Shane Oliver of AMP Capital also provided this brief summary of Labor’s Budget Reply:
“In terms of the election, Opposition leader Bill Shorten’s Budget reply speech confirmed that a Labor Government will adopt a very different approach to economic policy. The key elements of this include supporting the Government’s immediate ‘tax cuts’ for middle income earners and increasing them for low income earners, but increasing (not decreasing) tax rates for higher income earners, restricting negative gearing, halving the capital gains tax discount, ending cash refunds for franking credits, a more aggressive climate policy, higher minimum wages with some labour market reregulation and more spending on health and education. As always, much of this will be dependent on Senate passage and that’s not assured in some areas (like negative gearing). But it will likely lead to nervousness in the Australian share market and the changes to negative gearing and capital gains tax will be negative for property prices. If Labor wins, expect a mini-budget in the September quarter.
But its clear that both sides of politics are aiming for budget surpluses and committed to tax relief for low and middle income households to be received after they complete their 2018-19 tax returns. The latter will provide some boost to spending in the September quarter (although the Rudd payments in the GFC indicate that much will be saved) which along with likely RBA rate cuts, continuing strong infrastructure spending, improving business investment and strong export demand should keep the economy growing despite the drag from the housing downturn – just not as strongly as the Government and RBA are forecasting.”
The highlights from Bill Shorten included:
- $2.3 billion to cover specialist appointments and scans for cancer treatment.
- Matching the Coalition’s tax cuts for workers earning between $48,000 and $126,000.
- No support for the Coalition’s plan to flatten the tax system by reducing rates on higher earners.
- A big commitment to NDIA staffing and TAFE funding.
Additional Budget commentary
Chief Economist, Shane Oliver, recaps the key measures put forward and considers how they might affect the Australian economy and investment markets. Watch and read here
The 2019-20 Australian Budget – the long awaited surplus and the promise of more tax cuts ahead of the election. View PDF
Colonial First State
Head of Technical Services, Craig Day, has shared a video overview and a detailed briefing paper covering the key budgetary measures discussed by Treasurer Josh Frydenberg including tax, super, social security, and aged care.
Budget Hub: www.nabtrade.com.au/budget2019
Video: Three key Budget takeaways
Gemma Dale dissects the tax, super and social security proposals from this year’s Budget. Watch now
Budget highlights at a glance
From economic forecasts to infrastructure spending, our infographic provides a snapshot of key Budget announcements. View PDF
Video: What are the stock market implications?
Peter Switzer and Paul Rickard discuss which stocks and sectors could benefit from this year’s Budget. Watch now
Podcast: Budget in-depth
We discuss key Budget proposals at length and what they could mean for you. Listen now
Federal Budget 2019 – Black ink and lower taxes. View here