Australia: Federal Budget 2019 shows $7.1bn surplus in 2019-20 - Westpac

Analysts at Westpac explain that the Australia’s Federal Budget 2019 has shown $7.1bn surplus in 2019-20, while $13.3bn in net new spending over 5 years to 2022-23.

Key Quotes

“Federal Budget 2019 has been handed down ahead of the next Federal Election in May. Unsurprisingly, Budget 2019 focuses on tax cuts and additional spending, albeit while maintaining fiscal prudence.”

“On the Government’s forecasts, despite an additional $13.3bn in net new spending over the five financial years to June 2023, surpluses totalling $45bn are expected from July 2019 to June 2023.”

“For households, the focus is on tax relief for low- and middle-income earners. For businesses, Budget 2019 offers near-term benefit in the form of a further extension of the instant asset write-off provision and, in the longer-run, increased infrastructure spending.”