Federal Budget Australia 2017
The 2017-18 Australian Budget – pragmatism and fairness rule
AMP Capital article by Shane Oliver
The 2017-18 Budget has much to make it popular. In fact, the goodies make it almost feel like a pre-election rather than a post-election budget. The transformation from the austerity to end “the age of entitlement” of the 2014 budget to the “fairness, security and opportunity” of this Budget has been profound.
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- The 2017-18 Budget has a welcome focus on housing affordability and infrastructure;
- Subdued wages growth is keeping revenue collection down contributing to a slight deterioration in near term deficit projections (a deficit of $29.4bn for 2017-18) but a return to surplus is still projected for 2020-21;
- This year’s Budget should be positive for confidence;
- The impact on the RBA and the shares is likely to be minimal.