Time to Tighten the Purse Strings?

PDF

The Federal Budget will be handed down next Tuesday, 29 March, against the backdrop of the ongoing pandemic, floods across parts of Queensland and NSW, and war in Europe. Plus, with an upcoming election, the government will be looking to shore up its appeal with voters.

Treasurer Josh Frydenberg provided some hints of what to expect in a speech last week. He emphasised that “fiscal settings need to be normalised” and that the time for “large scale economy-wide emergency support is over”. In other words, it is time to tighten the purse strings.

The government wants to begin a “gradual and measured” consolidation to rebuild fiscal buffers so that in the future “we have firepower to respond”. But at the same time, cost of living pressures are building. And the government will be under pressure to provide support to those in need.

So, what does this mean in practise for the budget bottom line?

Download – 21 March 2022 Weekly economic outlook

Take the next steps

  • BT Investment Solutions (BTIS)
    BTIS delivers an institutional grade investment management capability across a range of solutions, from low-cost index portfolios to actively managed strategies.

The monthly market and economic chart pack from BT’s Investment Solution team provides a comprehensive illustration of economic and financial market performance.
PDF
For many advisers, incorporating sustainable investments into their core service offering is an effective way to differentiate and add value for their clients. Learn how finding the right type of sustainable investments can be a rewarding way to connect with your clients and give them greater confidence in their investments.
article
Australia’s housing boom has continued to steam ahead over recent months. The persistent strength in the housing market has prompted concerns that the price increases and credit growth are unsustainable and that action needs to be taken by regulators.
article

 


This document has been created by Westpac Financial Services Limited (ABN 20 000 241 127, AFSL 233716). It provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. Projections given above are predicative in character. Whilst every effort has been taken to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not consider known or unknown risks and uncertainties. The results ultimately achieved may differ materially from these projections. This document may contain material provided by third parties derived from sources believed to be accurate at its issue date. While such material is published with necessary permission, Westpac Financial Services Limited does not accept any responsibility for the accuracy or completeness of or endorses any such material. Except where contrary to law, Westpac Financial Services Limited intends by this notice to exclude liability for this material. Information current as at 10 December 2021. © Westpac Financial Services Limited 2021.