You don’t need a degree in economics to know you can’t keep spending more than you earn.
Yet for the last 12 years, that’s just what successive Australian governments have been doing.
Fortunately, the trend towards ever more debt looks to be coming to an end.
Treasurer Josh Frydenberg has announced his strong confidence in the Australian federal budget finally bringing some good news with a predicted budget surplus for the first time in 12 years.
A solid-looking budget in a global whirlwind
It’s a sure sign of responsible spending for the nation, considering the craziness going on across the globe in trade and economics over recent months, as well as constrained credit lending here in Oz thanks to the Banking Royal Commission.
As RAW reports, Frydenberg will announce the current state of the nation’s books in his first budget plan on 2 April 2019.
Last night, Frydenberg revealed a sneak peek into these long-awaited positive figures during his appearance on ABC’s program 7:30.
‘It’s certainly still looking solid,’ he said, referring to the budget.
‘We are committed to delivering a surplus, not just in 2019/2020, but over the years ahead to bring down net debt from just over 18 per cent of GDP today to 1.5 per cent at the end of the medium term.’
Frydenberg realistic about the current tensions
Of course, Frydenberg is level-headed enough to acknowledge economic concerns that are bound to continue placing strain on Australia’s economic process. He specifically noted the US–China ongoing trade disputes as well as the increase in global doubt as the main challenges.
‘These are some of the issues that we need to deal with,’ he said.
That being said, The Australian Tribune have been following the global politics quite closely, and are seeing signs of improvement in US–China relations.
Admittedly, however, we can’t predict the future.
As such, we can’t determine the outcome of the upcoming federal election, nor can we say for certain the date in which it will occur.
‘That’s a decision for the PM and his alone,’ Frydenberg said, and if he doesn’t have the power, we certainly don’t. But either way, the budget will be revealed as planned, according to Frydenberg:
‘I’ll be delivering a budget on April 2 that will be an important economic document.’
It will be interesting how parliament reacts to these impressive figures when the time comes.
PS: Tired of paying more tax, year after year and decade after decade? Find out what you could do to help stop Australia’s already-crushing tax burden blowing out even further this year. Click here to download our latest research report free.