Our view is that the budget is targeted to the coming election campaign. The budget response from the leader of the opposition will be arguably more compelling with the ALP by far the most likely winner of the upcoming federal election in May
Key takeaways from the initial budget offering were some tax cuts to most lower to middle income earners with the trumpeted headline being roughly $1,000 per person, a slight increase to the immediate write off for plant and equipment timing difference, some support particularly to drought affected Northern farmers and some further tweaking to the ability to claim superannuation deductions without passing of the work test for 65 and 66 year olds.
My sense is that it is tweaks rather than wholesale reforms. The surplus is predominantly due to rises in the commodity price levels, particularly following disasters in Brazil and may be somewhat temporary but will be trumpeted as sound economic management no doubt.
The silly season of election promises and politically point scoring is about to befall us over the next few days.
Click on the link below for the 2019-20 Federal Budget.