While the income tax cuts that the Australian Treasurer is planning to announce in Tuesday’s Federal Budget will provide a small boost to the economy over the next couple of years, we doubt they will prompt the RBA to raise interest rates before late in 2019. And even if the tax cuts help the government win the next election, the hole they will blow in the structural budget deficit suggests the government may not be able to fulfil its election promises.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.