Federal Budget 16-17
April 28th 2016 | Categories: Federal Budget |
Election budget will highlight the need to reform
Author: Shane Oliver
Chief Economist and Head of Investment Strategy
AMP Capital.
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
In this video, we provide investors with an overview of what to expect in this year’s ‘pre-election’ budget.
What you need to know
This information is provided by Invest Blue Pty Ltd (ABN 91 100 874 744). The information contained in this article is of general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regards to those matters and seek personal financial, tax and/or legal advice prior to acting on this information. Read our Financial Services Guide for information about our services, including the fees and other benefits that AMP companies and their representatives may receive in relations to products and services provided to you.
Posted in Federal Budget