Federal Treasurer Josh Frydenberg’s maiden Federal
Budget, released on 2 April (with an election only a matter of
weeks away) is laser-focussed on those issues that hold the key to
re-election of the Government.
That focus is on a modest surplus, no increases in taxes and tax
cuts and incentives for individuals and small to medium business.
That surplus is underlined by a stronger-than-expected resources
sector (including higher coal and iron ore prices) and increased
corporate profits, but this sort of windfall should not be taken
for granted.
The Australian economy is expected to face slower growth,
estimated at 2.75% in 2019-20 and 2020-21, amid challenges in the
international economy – think Brexit and the China-US trade
war – as well as the local economy – think softening
domestic property markets and the associated risks to household
consumption.
