It’s Budget day and Dr Jim Chalmers has been the first Treasurer in a long time to hold back the tide on what would normally be a long list of Budget ‘leaks’. How do I know this? Well, we don’t know as much about tonight’s Budget as we usually do on the morning of the second Tuesday in May.
That said, let’s do a quick rundown of what we do know, assuming Dr Jim will hold the best for most people/voters and the worst for some people until tonight. What the Treasurer announces gives me something to talk about tomorrow! Of course, that story primarily will be on my assessment of the Budget’s hit on the economy, inflation, and interest rates. And then there are those individuals who allegedly have been getting it too easy from taxation laws and superannuation rules. And then there are the implication of any of these changes on the stock market.
Here's what we know so far:
This seems like a lot of small picture stories that could have huge impacts on individuals. More will be revealed tonight but, inevitably, it will be the big picture of how this Budget hits the economy in the next year that will take centre stage.
Why is next year important? Well, Dr Jim has made the courageous decision to tip that the current economy plus his Budget will deliver inflation inside the 2-3% band by year’s end and that should set the scene for interest rate cuts, I’d say by Cup Day in November.
If that doesn’t happen, the Treasurer’s Budget predictions will be compared to what predictably you’d find on the floor of a stable at Flemington on the first Tuesday in November.
And as someone who knows the economy needs rate cuts, I hope this ‘crappy’ possibility doesn’t come to reality.
No matter how you vote, given the big impact of a Budget on the lives of Australians, you have to hope that the public servants in Treasury have helped Dr Jim create a fiscal document for tonight that creates a better economy for all of us!