This ‘Election budget’ will highlight the need to reform.
There will be added interest in the Federal Budget 2016-17 announcement on May 3 as it’s likely to be the final major economic statement the Government makes before the election later this year.
With the opposition taking a strong stance on capital gains tax and negative gearing, we’re looking at a focus this year on taxation.
Corporate tax could be cut by up to 1.5% however, there is likely to be minimal – if any – relief in terms of personal income tax. There may also be some changes to superannuation.
Overall, the outlook is for minimal growth in government spending, with spending offset by savings elsewhere in the Budget.
Where sharemarkets are concerned, historically we have seen some sideways tracking in election years but there has been no evidence to date of a lasting impact caused by an election. In fact, Australian economic growth has actually been strong during election years since 1980.
Budget 2016-17 will be released at approximately 7.30pm (AEST) on Tuesday 3 May 2016
Contact Brad Lonergan (Financial Planner) for more information about how the budget may affect you and your investments.
0423 621 120 or email at brad@bmkfs.com.au
We hope you enjoyed Shane Oliver’s pre-budget update.
