Every year on the 2nd Tuesday in May, the Australian Federal Government releases their Annual Budget, and the very next day we present our Annual Budget Review Seminar and then travel around the world presenting it. But not in 2019.
This year, due to the double dissolution of Parliament at the 2016 Federal Election, the Government was required to bring forward the budget to the 2nd April to allow enough time to call an election on May, due this weekend on the 18th.
As a result, this threw our schedule out and coupled with the high likelihood of a change of Government, we decided to change our strategy to allow inclusion of the opposition reply to the Budget. As such this presentation gives a good grounding of the financial policy issues from either party.
We also chose not to take the normal tour as it conflicted with our Annual staff trip, always around ANZAC day each year. Hopefully you have been able to enjoy the video of the presentation which covers the major announcements of the Morrison Government and the formal announcements of the Opposition leader, Bill Shorten.
In the presentation, I prepared an important Credibility Calculator as the financial capability of each party is a major issue in this election and the results speak for themselves. You would be well advised to review this as you deliberate your voting preferences.
As an Australian overseas, I am not entitled to vote and try my best to remain non-political in my commentary. As an accountant and tax professional, I confess to prefer the sensible financial governance and lower tax rate policy of the Liberal Party at the moment and remain very fearful of the Labor Party seeking to keep taxes high and offer an incredible amount of ongoing generosity in Government spending programs.
This is a carbon copy of the Rudd & Gillard Governments that massively overspent with minimal impact and pushed Australia into record debt and annual deficits. I think anyone, of either Liberal or Labor persuasion, would be surprised by the results in the Credibility Calculator and you should review them in this article.
I believe in fairness, supporting the needy and improving our community. I can not agree that full subsidy over contribution, disincentive over encouragement, over taxing one section to support another and debt over financial well being, are all justified in the pursuit of fairness. For a community to prosper for all, all have to contribute without great disproportion from any.
As we have a strong focus on Property in SMATS Group, I have also prepared a quick presentation on the policy initiatives of each party in regard to property matters, so you may well enjoy this online presentation which can be viewed here.
There is a lot of misinformation about the Labor Policy on Negative Gearing, which itself isn’t that bad, but their desire to increase the Capital Gains Tax on property is of concern. Hopefully this update will help you gain a better understanding of the issues around property markets.
Regardless of which way the Election goes, you can be sure we will be ready with an update of the key issues that come about and may have impact on your situation.